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Decomposition Analysis Of Factor Cost Shares: The Case Of Greek Agriculture

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  • Karagiannis, Giannis
  • Katranidis, Stelios D.
  • Velentzas, Kostas

Abstract

An alternative version of decomposition analysis, based on factor cost shares rather than input demand functions, is presented and applied to Greek agriculture. Decomposition analysis shows that most of the changes in factor cost shares during the period from 1973 to 1989 are attributed to technical change and factor substitution, while the role of the scale effect is small, except that of fertilizer. The decomposition analysis results are then used to analyze the implications of Greece's fertilizer and feed subsidy removal, which took place in 1990.

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Bibliographic Info

Article provided by Southern Agricultural Economics Association in its journal Journal of Agricultural and Applied Economics.

Volume (Year): 28 (1996)
Issue (Month): 02 (December)
Pages:

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Handle: RePEc:ags:joaaec:15115

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Web page: http://www.saea.org/jaae/jaae.htm
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Keywords: Decomposition analysis; Factor cost shares; Greek agriculture; Farm Management;

References

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  1. Andreas A. Andrikopoulos & James A. Brox, 1992. "Cost Structure, Interfactor Substitution and Complementarity, and Efficiency in the Canadian Agricultural Sector," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 40(2), pages 253-269, 07.
  2. Moschini, Giancarlo & Moro, Daniele, 1994. "Autocorrelation specification in singular equation systems," Economics Letters, Elsevier, vol. 46(4), pages 303-309, December.
  3. 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 449-58, June.
  4. McLean-Meyinsse, Patricia E. & Okunade, Albert Ade., 1988. "Factor Demands Of Louisiana Rice Producers: An Econometric Investigation," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 20(02), December.
  5. Diewert, W. E. & Wales, T. J., 1995. "Flexible functional forms and tests of homogeneous separability," Journal of Econometrics, Elsevier, vol. 67(2), pages 259-302, June.
  6. repec:ubc:bricol:92-13 is not listed on IDEAS
  7. Mergos, George J & Yotopoulos, Pan A, 1988. "Demand for Feed Inputs in the Greek Livestock Sector," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 15(1), pages 1-17.
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Cited by:
  1. Friedrich Schneider & Klaus Salhofer & Erwin Schmid & Gerhard Streicher, 2001. "Was the Austrian agricultural policy least cost efficient?," Economics working papers 2001-03, Department of Economics, Johannes Kepler University Linz, Austria.

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