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Estimating the price elasticity of demand for family and hired farm labour in England and Wales

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  • A. J. Errington
  • L. Harrison Mayfield
  • Y. Khatri
  • R. Townsend
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    Abstract

    The agricultural workforce in the UK has been declining since the middle of the last century. However, the different types of agricultural labour have been variously affected, and hence the composition of the agricultural workforce has been undergoing continuous change. These changes in the structure of the agricultural workforce have serious implications not only for the policy makers but also for farm workers and farm businesses and those that service their needs. The study compares and explores the own price elasticity of demand for two groups of agricultural labour - that of family and hired - to enable the effects of agricultural policy on the structure of the agricultural workforce in both the short and long run to be estimated. This was done using two different methodologies - single equation and duality based system models. The similarities in the resulting elasticities give confidence in the estimates. These estimates can be used to help forecast the future structure of the agricultural workforce.

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    Bibliographic Info

    Article provided by Taylor & Francis Journals in its journal Applied Economics.

    Volume (Year): 29 (1997)
    Issue (Month): 12 ()
    Pages: 1561-1574

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    Handle: RePEc:taf:applec:v:29:y:1997:i:12:p:1561-1574

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    1. Geweke, John F & Meese, Richard, 1981. "Estimating Regression Models of Finite but Unknown Order," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 22(1), pages 55-70, February.
    2. Johansen, Soren, 1992. "Cointegration in partial systems and the efficiency of single-equation analysis," Journal of Econometrics, Elsevier, vol. 52(3), pages 389-402, June.
    3. Engle, Robert F. & Yoo, Byung Sam, 1987. "Forecasting and testing in co-integrated systems," Journal of Econometrics, Elsevier, vol. 35(1), pages 143-159, May.
    4. Johansen, Soren & Juselius, Katarina, 1990. "Maximum Likelihood Estimation and Inference on Cointegration--With Applications to the Demand for Money," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 52(2), pages 169-210, May.
    5. Askari, Hossein & Cummings, John Thomas, 1977. "Estimating Agricultural Supply Response with the Nerlove Model: A Survey," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 18(2), pages 257-92, June.
    6. Anderson, Gordon & Blundell, Richard, 1983. "Testing Restrictions in a Flexible Dynamic Demand System: An Application to Consumers' Expenditure in Canada," Review of Economic Studies, Wiley Blackwell, vol. 50(3), pages 397-410, July.
    7. A. J. Errington, 1990. "Rural Employment In England: Some Data Sources And Their Use," Journal of Agricultural Economics, Wiley Blackwell, vol. 41(1), pages 47-61.
    8. Hallam, David & Zanoli, Raffaele, 1993. "Error Correction Models and Agricultural Supply Response," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 20(2), pages 151-66.
    9. Hendry, David F. & Pagan, Adrian R. & Sargan, J.Denis, 1984. "Dynamic specification," Handbook of Econometrics, in: Z. Griliches† & M. D. Intriligator (ed.), Handbook of Econometrics, edition 1, volume 2, chapter 18, pages 1023-1100 Elsevier.
    10. Engle, Robert F & Granger, Clive W J, 1987. "Co-integration and Error Correction: Representation, Estimation, and Testing," Econometrica, Econometric Society, vol. 55(2), pages 251-76, March.
    11. Anderson, G J & Blundell, R W, 1982. "Estimation and Hypothesis Testing in Dynamic Singular Equation Systems," Econometrica, Econometric Society, vol. 50(6), pages 1559-71, November.
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    Cited by:
    1. Beatrice Conradie, 2004. "Wages and wage elasticities for wine and table grapes in South Africa," SALDRU/CSSR Working Papers 090, Southern Africa Labour and Development Research Unit, University of Cape Town.
    2. Fertő, Imre, 2002. "A mezőgazdasági termelés szerkezetének változásai a fejlett országokban, I. Miért a családi gazdaság a meghatározó üzemforma a fejlett országok mezőgazdaságában?
      [Changes in the st
      ," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(7), pages 574-596.

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