SHORT- AND LONG-RUN DEMAND AND SUBSTITUTION OF AGRICULTURAL INPUTS

Short- and long-run Hicksian and Marshallian elasticities are estimated, along with Morishima elasticities of substitution, using a restricted profit function and a series of decomposition equations. Convexity in prices and concavity in quasi-fixed factors of the restricted profit function are simultaneously imposed using Bayesian techniques. The empirical model is disaggregated in the input side, utilizes a Fuss-quadratic flexible functional form, incorporates the impact of agricultural policies, and introduces a new weather index. The methodology is applied to Illinois's agriculture, and implications for agriculture in the Corn Belt and the Northeast are briefly discussed.


Issue Date:
1992-04
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/28848
Published in:
Northeastern Journal of Agricultural and Resource Economics, Volume 21, Number 1
Page range:
36-49
Total Pages:
14




 Record created 2017-04-01, last modified 2017-08-24

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