This study explores the impact of technical inefficiency on agricultural supply functions in Ukraine. Two models using a system of output supply and input demand equations were evaluated in this research: one without inefficiency included in the model and another with inefficiency included. A likelihood ratio test found that the model with inefficiency included was the preferred model in this case. Incorporation of inefficiency into the model increased output supply elasticities and did not dramatically change input demand elasticities. The own-price elasticities for grains, sugar beets, sunflowers, and potatoes showed inelastic positive signs that were statistically significant. The own-price input demands were negative and also inelastic; however, only fertilizer and fuels were statistically significant.
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Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2001 Annual meeting, August 5-8, Chicago, IL with number
20539.
Length: Date of creation: 2001 Date of revision: Handle: RePEc:ags:aaea01:20539
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