Rethinking Within and Between Regressions: The Case of Agricultural Production Functions

The canonical form of regressions estimated with panel data consists of within-unit-time, between-unit and between-time regressions. These components represent different outcomes of the underlying economic processes. This is demonstrated in the paper by presenting results for the cross-country agricultural production function where the choice of inputs is convoluted with the choice of techniques. The results shed new light on resource productivity in agriculture and its relationship with the implemented technology.