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Abstract
The production structure of Tunisian agriculture over the last three decades is
investigated using a translog variable cost function. Standard results of neoclassical
duality theory are used to obtain measures of elasticities of substitution between inputs,
price elasticities of factor demands and the rate of growth and bias of technological
progress. Empirical results obtained from the joint estimation of parameters of the cost
and share equations indicate an increasing trend in the degree of substitutability
between labour and intermediate inputs. The own-price elasticities of labour and
intermediate inputs are inelastic. While the labour price elasticity of demand has
increased over time, the intermediate input price elasticity of demand has declined.
Finally, technological progress occurred at an impressive and sustained annual growth
rate of 3.8 percent.