The Marginal Productivity of Inputs and Agricultural Production in Nepal

Abstract

In Nepal, agricultural technology has been relatively stagnant and farmers have been forced to apply more and more of their traditional inputs to production on the land. Since there are few alternative economic opportunities, it is possible that the marginal products of these inputs may be zero. A modified form of a VES production function is applied to cross-sectional data on Nepalese farmers in order to test this proposition.