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Functional Form And U.S. Agricultural Production Elasticities

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  • Shumway, C. Richard
  • Lim, Hongil

Abstract

Because so much agricultural policy analysis utilizes estimates of supply and demand elasticities, it is crucial to obtain the most reliable estimates possible. Where reliability cannot be adequately assessed, the sensitivity of elasticities to equally plausible a priori specifications should at least be ascertained. In this article, the sensitivity of U.S. output supply and input demand elasticities to choice of functional form. Considerable sensitivity is found to choice of functional form. Although most frequently used, the translog is generally the outlier and is the least preferred among the alternatives.

Suggested Citation

  • Shumway, C. Richard & Lim, Hongil, 1993. "Functional Form And U.S. Agricultural Production Elasticities," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 18(2), pages 1-11, December.
    • Handle: RePEc:ags:jlaare:30959
    DOI: 10.22004/ag.econ.30959
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    References listed on IDEAS

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    4. Appelbaum, Elie, 1979. "On the Choice of Functional Forms," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 20(2), pages 449-458, June.
    5. Berndt, Ernst R & Khaled, Mohammed S, 1979. "Parametric Productivity Measurement and Choice among Flexible Functional Forms," Journal of Political Economy, University of Chicago Press, vol. 87(6), pages 1220-1245, December.
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    Cited by:

    1. Rulon D. Pope & Jeffrey T. LaFrance & Richard E. Just, 2007. "Imperfect Price Deflation in Production Systems," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(3), pages 738-754.
    2. Tzouvelekas, Evaggelos, 2000. "Approximation Properties and Estimation of the Translog Production Function with Panel Data," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 1(1), pages 1-16, January.
    3. Shumway, C. Richard & Davis, George C., 2001. "Does consistent aggregation really matter?," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 45(2), pages 1-34.
    4. Unterschultz, James R. & Jeffrey, Scott R. & Quagrainie, Kwamena K., 2000. "Value-Adding 20 Billion By 2005: Impact At The Alberta Farm Gate," Project Report Series 24049, University of Alberta, Department of Resource Economics and Environmental Sociology.
    5. Yan, Dong & Jensen, Helen H. & Fabiosa, Jacinto F., 2004. "Output Supply And Input Demand System Of Commercial And Backyard Poultry Producers In Indonesia," 2004 Annual meeting, August 1-4, Denver, CO 20266, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Ornelas, Fermin S. & Shumway, C. Richard, 1993. "Multidimensional Evaluation of Flexible Functional Forms for Production Analysis," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 25(2), pages 106-118, December.
    7. Liu, Boying & Richard Shumway, C., 2016. "Substitution elasticities between GHG-polluting and nonpolluting inputs in agricultural production: A meta-regression," Energy Economics, Elsevier, vol. 54(C), pages 123-132.
    8. Lin, Ni & Shumway, C. Richard, 2000. "Asset Fixity In U.S. Agriculture: Robustness To Functional Form," Ag Econ Series 12967, Washington State University, School of Economic Sciences.
    9. Murova, Olga I. & Coble, Keith H. & Trueblood, Michael A., 2001. "Supply Response Of Ukrainian Agriculture," 2001 Annual meeting, August 5-8, Chicago, IL 20539, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    10. repec:zib:zbmahj:v:2:y:2022:i:1:p:34-39 is not listed on IDEAS
    11. Rickard, Bradley J. & Gonsalves, Jana L., 2008. "How would compliance with dietary recommendations affect revenues for agricultural producers?," Food Policy, Elsevier, vol. 33(5), pages 422-433, October.
    12. Lambert, David K., 1997. "A Programming Approach To Estimate Production Functions Using Bounds On The True Production Set," Discussion Papers 12956, University of Nevada at Reno, Department of Resource Economics.
    13. Rickard, Bradley J. & Sumner, Daniel A., 2011. "Was there policy "reform"? Evolution of EU domestic support for processed fruits and vegetables," Food Policy, Elsevier, vol. 36(3), pages 438-449, June.
    14. Shumway, C. Richard, 1995. "Recent Duality Contributions In Production Economics," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 20(1), pages 1-17, July.

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