Market imperfections and land productivity in the Ethiopian Highlands
This study analyzes how market imperfections affect land productivity in a degraded low-potential cereal- livestock economy in the Ethiopian highlands. A wide array of variables is used to control for land quality in the analysis. Results of three different selection models were compared with least squares models using the HC3 heteroskedasticity-consistent covariance matrix estimator. Market imperfections in labor and land markets were found to affect land productivity. Land productivity was positively correlated with household male and female labor force per unit of land.