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Abstract

We extend the methodology of a two-step profit function to obtain area and yield elasticities. We then estimate the effects of price and technology on crop output of France, Germany, and the UK. Area elasticities were obtained by adding area shadow price equations to the standard dual model of output and input equations. Change in output is dominated by technology in the UK and mixed in France and Germany. The results indicate policies affecting price will have diverse responses across countries and crops.

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