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Abstract

This paper estimates an equation for fertilizer demand in Brazil, considering time period from 1970 to 2002. Co-integration analysis procedures have been used and they show that just the level model (LSO method), valid for long term, presents good econometrics results. Fertilizer demand is inelastic to both price fluctuations and rural credit supplied. These results are compatible with the international estimates and they also confirm the importance of fertilizer as an input for the Brazilian agriculture.

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