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Short- And Long-Run Demand And Substitution Of Agricultural Inputs

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Author Info
Fernandez-Cornejo, Jorge
Abstract

Short- and long-run Hicksian and Marshallian elasticities are estimated, along with Morishima elasticities of substitution, using a restricted profit function and a series of decomposition equations. Convexity in prices and concavity in quasi-fixed factors of the restricted profit function are simultaneously imposed using Bayesian techniques. The empirical model is disaggregated in the input side, utilizes a Fuss-quadratic flexible functional form, incorporates the impact of agricultural policies, and introduces a new weather index. The methodology is applied to Illinois's agriculture, and implications for agriculture in the Corn Belt and the Northeast are briefly discussed.

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File URL: http://purl.umn.edu/28848
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Publisher Info
Article provided by Northeastern Agricultural and Resource Economics Association in its journal Northeastern Journal of Agricultural and Resource Economics.

Volume (Year): 21 (1992)
Issue (Month): 1 (April)
Pages:
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Handle: RePEc:ags:nejare:28848

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Related research
Keywords: Demand and Price Analysis;

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  1. Horan, Richard D. & Claassen, Roger & Cooper, Joseph, 2000. "Environmental Risk And Agri-Environmental Policy Design," 2000 Annual meeting, July 30-August 2, Tampa, FL 21827, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  2. Roger Claassen & Richard Horan, 2001. "Uniform and Non-Uniform Second-Best Input Taxes," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 19(1), pages 1-22, May. [Downloadable!] (restricted)
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This page was last updated on 2009-12-26.


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