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Testing for Behavioral Objective and Aggregation Opportunities in U.S. Agricultural Data

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  • Shon P. Williams
  • C. Richard Shumway

Abstract

To guide formulation of an aggregate model of U.S. agricultural production, this paper reports nonparametric test results for both behavioral objective and aggregation level. Nonparametric tests are implemented as heuristics to determine empirical support for simplified analytical structures. Evidence does not refute the joint hypothesis that producers behave collectively as though they are a price-taking, profit-maximizing firm with a convex technology subject to nonregressive technical change. The empirical results also support exhaustive aggregation of input categories, but much less aggregation of outputs. This paper reports the first known implementation of the nonparametric homothetic separability tests. Copyright 1998, Oxford University Press.

Suggested Citation

  • Shon P. Williams & C. Richard Shumway, 1998. "Testing for Behavioral Objective and Aggregation Opportunities in U.S. Agricultural Data," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(1), pages 195-207.
    • Handle: RePEc:oup:ajagec:v:80:y:1998:i:1:p:195-207
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    Citations

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    Cited by:

    1. 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.
    2. Njuki, E. & Bravo-Ureta, B., 2018. "Accounting for the Impacts of Changing Configurations in Temperature and Precipitation on U.S. Agricultural Productivity," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277140, International Association of Agricultural Economists.
    3. Catherine Paul & Richard Nehring & David Banker & Agapi Somwaru, 2004. "Scale Economies and Efficiency in U.S. Agriculture: Are Traditional Farms History?," Journal of Productivity Analysis, Springer, vol. 22(3), pages 185-205, November.
    4. Nehring, Richard & Mishra, Ashok K. & Fernandez-Cornejo, Jorge & Hallahan, Charlie & Erickson, Kenneth & Harris, Michael, 2013. "Off-Farm Work and Economic Performance on Corn Farms," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 151422, Agricultural and Applied Economics Association.
    5. 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.
    6. Lusk, Jayson L. & Marsh, Thomas L. & Schroeder, Ted C. & Fox, John A., 2001. "Wholesale Demand For Usda Quality Graded Boxed Beef And Effects Of Seasonality," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 26(1), pages 1-16, July.
    7. Paul, Catherine J. Morrison & Nehring, Richard, 2005. "Product diversification, production systems, and economic performance in U.S. agricultural production," Journal of Econometrics, Elsevier, vol. 126(2), pages 525-548, June.

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