**<u>Table 6: Farm Size Productivity Relationship: Net Profit Approach Using Shadow Wages</u>**

|||**Holding level**|||**Plot l**|**evel**||
|---|---|---|---|---|---|---|---|
|Cropped area (ha)|-0.155***|-0.140***|-0.149***|-0.197***|-0.174***|-0.180***|-0.161***|
||(20.133)|(15.091)|(15.122)|(22.974)|(16.618)|(16.905)|(10.457)|
|Land value/ha (USD)||<br>0.097***|<br>0.093***||<br>0.102***|<br>0.093***|<br>0.082***|
|||(8.963)|(8.535)||(8.443)|(7.558)|(4.200)|
|Dist. from home (min)||0.000<br>|0.000<br>||-0.002***<br>|-0.002**<br>|-0.000<br>|
|||(0.946)|(0.904)||(3.510)|(2.328)|(0.463)|
|Years possessed||0.000|0.002||0.001|0.002**|0.001|
|||(0.568)|(1.617)||(0.833)|(2.095)|(0.529)|
|Plot in wetland||<br>0.004|<br>-0.013||<br>-0.006|<br>-0.021|<br>-0.016|
|||(0.070)|(0.225)||(0.110)|(0.417)|(0.241)|
|Irrigated land||-0.053|-0.036||-0.028|-0.011|0.008|
|||(0.972)|(0.665)||(0.488)|(0.197)|(0.088)|
|Flat land||<br>-0.046|<br>-0.046||<br>-0.053|<br>-0.050|<br>0.029|
|||(1.360)|(1.354)||(1.539)|(1.470)|(0.587)|
|Gently sloped land||<br>-0.032|<br>-0.032||<br>-0.023|<br>-0.027|<br>0.022|
|||(1.088)|(1.104)||(0.714)|(0.856)|(0.454)|
|Plot in valley||<br>0.108|<br>0.118||<br>0.004|<br>0.007|<br>-0.002|
|||(1.083)|(1.191)||(0.052)|(0.095)|(0.026)|
|Sandy soil||-0.027|-0.019||-0.009|-0.002|0.014|
|||(0.656)|(0.462)||(0.203)|(0.043)|(0.215)|
|Loam soil||0.040|0.041||0.097***|0.091**|0.085|
|||(1.180)|(1.219)||(2.632)|(2.483)|(1.492)|
|Light clay soil||<br>0.068|<br>0.070||<br>0.067|<br>0.064|<br>0.029|
|||(1.547)|(1.597)||(1.485)|(1.431)|(0.428)|
|Heavy soil||-0.047|-0.042||-0.047|-0.029|0.001|
|||(0.590)|(0.533)||(0.627)|(0.397)|(0.011)|
|Gravelly soil||<br>-0.013|<br>-0.008||<br>0.006|<br>0.013|<br>0.019|
|||(0.298)|(0.198)||(0.128)|(0.295)|(0.283)|
|Crop shock||-0.090***<br>(3.682)|-0.085***<br>(3.467)||-0.126***<br>(4.567)|-0.108***<br>(3.913)|-0.135***<br>(3.194)|
|Grains|||<br>-0.397**|||<br>-0.785***|<br>-0.838***|
||||(2.375)|||(6.111)|(5.415)|
|Tubers|||-0.242|||-0.637***|-0.776***|
||||(1.423)|||(4.917)|(4.984)|
|Tree crops|||-0.196|||-0.423***|-0.439***|
||||(1.150)|||(3.203)|(2.752)|
|Age of head|||-0.001|||-0.001||
||||(1.160)|||(0.805)||
|Female head|||<br>-0.019|||<br>-0.026||
||||(0.713)|||(0.776)||
|Primary school comp.|||0.021|||0.016||
||||(0.855)|||(0.528)||
|Sec. education|||<br>0.015|||<br>0.017||
||||(0.328)<br>|||(0.314)<br>||
|No of members <=14|||0.007|||0.015||
||||(0.898)|||(1.575)||
|No of members 15- 35|||-0.007|||-0.014||
||||<br>(0.719)|||<br>(1.251)||
|No of members 35- 60|||<br>0026|||<br>-0009||
||||.<br>(1.542)|||.<br>(0.473)||
|Constant|0.099***|-0.702***|<br>-0.384*|-0.105***|-0.905***|<br>-0.177|-0.025|
||(5.758)|(7.371)|(1.918)|(3.774)|(8.597)|(0.992)|(0.109)|
|Village fixed effects|No|Yes|Yes|No|Yes|Yes|No|
|<br>Hh fixed effects||||<br>No|<br>No|<br>No|<br>Yes|
|**Profit elasticity of land**|-0.409***|-0.368***|-0.391***|-0.420***|-0.371***|-0.385***|-0.345***|
||(17.768)<br>|(14.063)<br>|(14.098)<br>|(19.821)<br>|(15.339)<br>|(15.581)<br>|(10.142)<br>|
|No of observations|3,065|3,060|3,058|7,428|7,275|7,272|7,275|
|R-squared|0.117|0.153|0.166|0.066|0.082|0.098|0.076|

_Note:_ Regressions are for owned plots only (see separate appendix for results with all plots). Profit elasticity of land is calculated at mean values. Absolute value of t-statistics in parenthesis: *** significant at 1%; ** significant at 5%; * significant at 1%.

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