ALLOCATABLE FIXED INPUTS AND JOINTNESS IN AGRICULTURAL PRODUCTION: MORE IMPLICATIONS

The presence of allocatable fixed inputs may cause truly joint technologies to appear nonjoint in the short run as well as truly nonjoint technologies to appear joint. This paper demonstrates theoretically why this can happen and then documents that it actually occurs in a significant way in aggregate U.S. agricultural production. A simple testing procedure is used that requires no data on inputs allocations. The important finding is that failure to reject true (apparent) nonjointness does not justify modeling short-run (long-run) supply independent of alternative output prices.


Subject(s):
Issue Date:
1996-10
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/31397
Published in:
Agricultural and Resource Economics Review, Volume 25, Number 2
Page range:
143-148
Total Pages:
6




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

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