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Abstract

Several studies have estimated plant nutrient demand functions for nitrogen, phosphate, and potash. All included own-price effects but excluded prices of jointly applied nutrients. In this study, nutrient demand functions, which include prices of all three nutrients, are estimated for Tennessee by seemingly unrelated regression. Results suggest that cross-price effects are important in determining plant nutrient demand, at least in the case of Tennessee, and that multicollinearity need not be a hindrance in all cases to including cross-price effects in plant nutrient demand models.

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