TESTING FOR DISEQUILIBRIUM IN THE DEMAND FOR AGRICULTURAL INPUTS

A dynamic system of cost-share equations for agricultural inputs is used to test for the presence of input disequilibrium. This dynamic system incorporates a disequilibrium adjustment process into input-share equations derived from a translog cost function. The disequilibrium process is represented as a generalized partial adjustment model where disequilibrium in one input may affect other inputs. Results from this analysis suggest applications of translog share systems to agriculture under static equilibrium assumptions are inappropriate.


Issue Date:
1984-07
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/32382
Published in:
Western Journal of Agricultural Economics, Volume 09, Number 1
Page range:
106-116
Total Pages:
11




 Record created 2017-04-01, last modified 2017-11-23

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