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A Test Of Asset Fixity In Southeastern U.S. Agriculture

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  • Taylor, Timothy G.
  • Kalaitzandonakes, Nicholas G.

Abstract

A test for static equilibrium developed by Schankerman and Nadiri is used to evaluate the hypothesis that land and capital in aggregate southeastern U.S. agriculture behave as fixed inputs. Empirical results reject the hypothesis that these two inputs are at their long-run equilibrium levels implied by observed prices. Thus, some degree of asset fixity may be concluded.

Suggested Citation

  • Taylor, Timothy G. & Kalaitzandonakes, Nicholas G., 1990. "A Test Of Asset Fixity In Southeastern U.S. Agriculture," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 22(1), pages 1-7, July.
    • Handle: RePEc:ags:sojoae:29898
    DOI: 10.22004/ag.econ.29898
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    References listed on IDEAS

    as
    1. Schankerman, Mark & Nadiri, M. Ishaq, 1986. "A test of static equilibrium models and rates of return to quasi-fixed factors, with an application to the Bell system," Journal of Econometrics, Elsevier, vol. 33(1-2), pages 97-118.
    2. Utpal Vasavada & Robert G. Chambers, 1986. "Testing Asset Fixity for U.S. Agriculture: Reply," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 68(2), pages 355-357.
    3. Marc A. Johnson & E. C. Pasour, 1981. "An Opportunity Cost View of Fixed Asset Theory and the Overproduction Trap," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 63(1), pages 1-7.
    4. Glenn L. Johnson, 1982. "An Opportunity Cost View of Fixed Asset Theory and the Overproduction Trap: Comment," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 64(4), pages 773-775.
    5. Marc A. Johnson & E. C. Pasour, 1982. "An Opportunity Cost View of Fixed Asset Theory and the Overproduction Trap: Reply," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 64(4), pages 776-777.
    6. Conrad, Klaus & Unger, Ralph, 1987. "Ex post tests for short-and long-run optimization," Journal of Econometrics, Elsevier, vol. 36(3), pages 339-358, November.
    7. Taylor, Timothy G. & Monson, Michael J., 1985. "Dynamic Factor Demands for Aggregate Southeastern United States Agriculture," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 17(2), pages 1-10, December.
    8. Chris Fawson & C. Richard Shumway, 1988. "A Nonparametric Investigation of Agricultural Production Behavior for U.S. Subregions," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 70(2), pages 311-317.
    9. Diewert, W. E., 1976. "Exact and superlative index numbers," Journal of Econometrics, Elsevier, vol. 4(2), pages 115-145, May.
    10. Robert G. Chambers & Utpal Vasavada, 1983. "Testing Asset Fixity for U.S. Agriculture," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 65(4), pages 761-769.
    11. Glenn L. Johnson, 1960. "The State of Agricultural Supply Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 42(2), pages 435-452.
    12. Fuss, Melvyn & McFadden, Daniel, 1978. "Production Economics: A Dual Approach to Theory and Applications (I): The Theory of Production," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, volume 1, number fuss1978.
    13. Kulatilaka, Nalin, 1985. "Tests on the validity of static equilibrium models," Journal of Econometrics, Elsevier, vol. 28(2), pages 253-268, May.
    14. Clark Edwards, 1959. "Resource Fixity and Farm Organization," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 41(4), pages 747-759.
    15. Taylor, Timothy G. & Monson, Michael J., 1985. "Dynamic Factor Demands for Aggregate Southeastern United States Agriculture," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 17(2), pages 1-9, December.
    16. Fuss, Melvyn, 1978. "Factor Substitution in Electricity Generation: A Test of the Putty-Clay Hypothesis," Histoy of Economic Thought Chapters, in: Fuss, Melvyn & McFadden, Daniel (ed.),Production Economics: A Dual Approach to Theory and Applications, volume 2, chapter 7, McMaster University Archive for the History of Economic Thought.
    17. Berndt, Ernst R. & Fuss, Melvyn A., 1986. "Productivity measurement with adjustments for variations in capacity utilization and other forms of temporary equilibrium," Journal of Econometrics, Elsevier, vol. 33(1-2), pages 7-29.
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    Cited by:

    1. Kivanda, Lena & Fox, Glenn, 1993. "Falsification and the Practice of Agricultural Production Economists: A Methodological Assessment," Department of Agricultural Economics and Business 258724, University of Guelph.
    2. Heberling, Matthew T. & García, Jorge H. & Thurston, Hale W., 2010. "Does encouraging the use of wetlands in water quality trading programs make economic sense?," Ecological Economics, Elsevier, vol. 69(10), pages 1988-1994, August.

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