Derivation of Long-run Factor Demands from Short-run Responses

The concept of the restricted cost function provides a dual approach to the analysis of short-run technology. It allows also, under curvature restrictions, inference of the different possible equilibria, according to constraints on the firms. Moreover, in this paper, the properties of the restricted cost function are spelled out. Substitution possibilities related to the different regimes are also derived from the restricted cost function. This theoretical framework is applied to characterize the French cereal-producing sector by using a cross-section of farms.


Issue Date:
1989-10
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/172279
Published in:
Agricultural Economics: The Journal of the International Association of Agricultural Economists, Volume 03, Issue 3
Page range:
213-230
Total Pages:
18




 Record created 2017-04-01, last modified 2017-08-27

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