THE INFLUENCE OF TECHNOLOGICAL PROGRESS ON THE LONG RUN FARM LEVEL ECONOMICS OF SOIL CONSERVATION

The complementary interaction between topsoil depth and technical progress for winter wheat in the Palouse region was found to strengthen the long run payoff to conservation tillage. Nonetheless, conservation tillage was found to be competitive with conventional tillage only if its current yield disadvantages were eliminated. Conservation tillage was relatively more competitive on shallower topsoils and for longer planning horizons. Short-term subsidies coupled with research directed towards reducing the cost and yield disadvantages of conservation tillage in the Palouse were advocated to maintain long-term soil productivity.Land Economics/Use, Research and Development/Tech Change/Emerging Technologies,

Bootstrap-Based Improvements for Inference with Clustered Errors

Researchers have increasingly realized the need to account for within-group dependence in estimating standard errors of regression parameter estimates. The usual solution is to calculate cluster-robust standard errors that permit heteroskedasticity and within-cluster error correlation, but presume that the number of clusters is large. Standard asymptotic tests can over-reject, however, with few (5-30) clusters. We investigate inference using cluster bootstrap-t procedures that provide asymptotic refinement. These procedures are evaluated using Monte Carlos, including the example of Bertrand, Duflo and Mullainathan (2004). Rejection rates of ten percent using standard methods can be reduced to the nominal size of five percent using our methods.