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Abstract

This study examines the effects that a cutback in production by Texas agricultural producers would have on the economic well-being of all producers and consumers in the state's economy. To do this, a quadratic input-output model incorporating econometric estimates of final demand was developed for the Texas economy. The output of the agricultural production sectors was constrained to reflect the cutback in production. The results show that agricultural producers would be economically worse off than before only if the producers of raw agricultural products in Texas imported their input needs from other geographical areas.

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