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Identification And Estimation Of Underlying Market Supply Function Parameters For A Commodity With Mandatory Output Controls

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  • Goodwin, Barry K.
  • Sumner, Daniel A.
  • Sparrow, D. Arthur

Abstract

Data on lease rates for transferable output quotas allow implicit, measurements of marginal costs. Regression of these costs on quantities of quota allows identification and estimation of parameters of the marginal cost function. Econometric analysis of sixty tobacco counties for eight recent years yields implied supply elasticities of about 3.3.

Suggested Citation

  • Goodwin, Barry K. & Sumner, Daniel A. & Sparrow, D. Arthur, 1987. "Identification And Estimation Of Underlying Market Supply Function Parameters For A Commodity With Mandatory Output Controls," 1987 Annual Meeting, August 2-5, East Lansing, Michigan 270139, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea87:270139
    DOI: 10.22004/ag.econ.270139
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    References listed on IDEAS

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    1. Grise, Verner N., 1981. "Trends in Flue-Cured Tobacco Farming," Agricultural Economic Reports 307904, United States Department of Agriculture, Economic Research Service.
    2. Daniel A. Sumner & Julian M. Alston, 1987. "Substitutability for Farm Commodities: The Demand for U.S. Tobacco in Cigarette Manufacturing," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 69(2), pages 258-265.
    3. Paul R. Johnson & Daniel T. Norton, 1983. "Social Cost of the Tobacco Program Redux," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 65(1), pages 117-119.
    4. Hoover, Dale M. & Efstratoglou Todoulos, Sophia I., 1973. "Economic Effects Of Intercounty Transfer Of Flue-Cured Tobacco Quota," Department of Economics and Business - Archive 259736, North Carolina State University, Department of Economics.
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    Cited by:

    1. Sureshwaran, Suresh & Thompson, C. Stassen & Henry, Mark S. & Loyd, M.I., 1990. "Economic Surplus And The Distributional Consequences Of Deregulating Tobacco Production," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 22(2), pages 1-11, December.
    2. Beghin, John & Chang, Ruey-er, 1989. "Differentiated Products And Supply Controls In The Analysis Of Agricultural Trade Liberalization: The Case Of Tobacco," Department of Economics and Business - Archive 259448, North Carolina State University, Department of Economics.

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