Decomposition Analysis Of Factor Cost Shares: The Case Of Greek Agriculture
AbstractAn 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 InfoArticle provided by Southern Agricultural Economics Association in its journal Journal of Agricultural and Applied Economics.
Volume (Year): 28 (1996)
Issue (Month): 02 (December)
Decomposition analysis; Factor cost shares; Greek agriculture; Farm Management;
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