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Allocatable Fixed Inputs And Jointness In Agricultural Production: More Implications

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  • Asunka, Samuel
  • Shumway, C. Richard

Abstract

The presence of allocatable fixed inputs may cause truly joint technologies to appear nonjoint in the short run as well as truly nonjoint technologies to appear joint. This paper demonstrates theoretically why this can happen and then documents that it actually occurs in a significant way in aggregate U.S. agricultural production. A simple testing procedure is used that requires no data on inputs allocations. The important finding is that failure to reject true (apparent) nonjointness does not justify modeling short-run (long-run) supply independent of alternative output prices.

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File URL: http://purl.umn.edu/31397
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Bibliographic Info

Article provided by Northeastern Agricultural and Resource Economics Association in its journal Agricultural and Resource Economics Review.

Volume (Year): 25 (1996)
Issue (Month): 2 (October)
Pages:

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Handle: RePEc:ags:arerjl:31397

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Web page: http://www.narea.org/
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Keywords: Agribusiness;

References

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  1. Sakai, Yasuhiro, 1974. "Substitution and expansion effects in production theory: The case of joint production," Journal of Economic Theory, Elsevier, vol. 9(3), pages 255-274, November.
  2. Lau, Lawrence J, 1972. "Profit Functions of Technologies with Multiple Inputs and Outputs," The Review of Economics and Statistics, MIT Press, vol. 54(3), pages 281-89, August.
  3. Hongil Lim & C. Richard Shumway, 1997. "Technical Change and Model Specification: U.S. Agricultural Production," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(2), pages 543-554.
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Citations

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Cited by:
  1. Just, Richard E., 1993. "Discovering Production and Supply Relationships: Present Status and Future Opportunities," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 61(01), April.
  2. Schuck, Eric C. & Green, Gareth P. & Sunding, David L., 2000. "Irrigation Water Rate Reform And Endogenous Technological Change," 2000 Annual Meeting, June 29-July 1, 2000, Vancouver, British Columbia 36463, Western Agricultural Economics Association.
  3. Shumway, C. Richard & Jegasothy, Kandiah & Alexander, William P., 1987. "Production Interrelationships In Sri Lankan Peasant Agriculture," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 31(01), April.
  4. Mafoua, Edouard & Hossain, Ferdaus, 2001. "Scope And Scale Economies For Multi-Product Farms: Firm-Level Panel Data Analysis," 2001 Annual meeting, August 5-8, Chicago, IL 20627, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  5. Lankoski, J. & Ollikainen, M., 2000. "Multifunctional Agriculture: Framework and Policy Design," University of Helsinki, Department of Economics 477, Department of Economics.
  6. Gocht, Alexander, 2008. "Estimating input allocation for farm supply models," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6469, European Association of Agricultural Economists.
  7. Polson, Rudolph A. & Shumway, C. Richard, 1990. "Structure Of South Central Agricultural Production," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 22(02), December.
  8. Coyle, Barry T., 1993. "On Modeling Systems Of Crop Acreage Demands," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 18(01), July.
  9. Shumway, C. Richard, 1995. "Recent Duality Contributions In Production Economics," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 20(01), July.
  10. Mafoua, Edouard, 2002. "Economies Of Scope And Scale Of Multi-Product U.S. Cash Grain Farms: A Flexible Fixed-Cost Quadratic (Ffcq) Model Analysis," 2002 Annual meeting, July 28-31, Long Beach, CA 19734, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  11. Kang, Hye-Jung & Lee, Hyunok & Sumner, Daniel A., 2003. "Heterogeneity In Production Technology Across Farm Sizes: Analysis Of Multi-Output Production Function Using Korean Farm-Level Panel Data," 2003 Annual meeting, July 27-30, Montreal, Canada 22245, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  12. Alain Carpentier & Elodie Letort, 2009. "Modeling acreage decisions within the multinomial Logit framework," Working Papers SMART - LERECO 09-17, INRA UMR SMART.
  13. Ball, V. Eldon & Moss, Charles B. & Erickson, Kenneth W. & Nehring, Richard F., 2003. "Modeling Supply Response In A Multiproduct Framework Revisited: The Nexus Of Empirics And Economics," 2003 Annual meeting, July 27-30, Montreal, Canada 21981, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  14. Adelaja, Adesoji O. & Hoque, Anwarul, 1986. "A Multi-Product Analysis Of Energy Demand In Agricultural Subsectors," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 18(02), December.

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