Input and output biased technological change in US agriculture

Data Envelopment Analysis (DEA) techniques are applied to a state-level data set to measure the total factor productivity in US agriculture over 1960–1996. Total factor productivity is decomposed into input and output biased technological change, efficiency change, and scale change, under both constant return to scale (CRS) and variable return to scale (VRS). Assumption of Hick neutral technological change is discussed. Technological change is found to be the result of efficient use of inputs much more than the effects of output capability increase.