MODELING IMPACTS OF SOIL CONSERVATION ON PRODUCTIVITY AND YIELD VARIABILITY: EVIDENCE FROM A HETEROSKEDASTIC SWITCHING REGRESSION
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The impact of soil conservation adoption on yield and yield risk is investigated using a conditionally heteroskedastic production function with endogenous switching. Analysis shows that controlling for plot-specific factors, adopters exhibit lower yields and higher yield variance than non-adopters. Regression results indicate soil conservation increases yields and reduces yield variance.