Multi-Output Broadacre Agricultural Production: Estimating A Cost Function Using Quasi-Micro Farm Level Data From Australia
AbstractExisting econometric models for Australian broadacre agricultural production are few and have become dated. This paper estimates a multi-product restricted cost function using a unique quasi-micro farm level dataset from the Australian Agricultural and Grazing Industries Survey. Both the transcendental logarithmic and normalized quadratic functional forms are employed. Heteroskedasticity caused by the particular nature of the quasi-micro data is also assessed and accommodated. Allen partial elasticities of input substitution and own-and cross-price input demand elasticities are computed. The estimated demands for most production factors are inelastic to prices. Hired labour is responsive to own price and cropping input prices.
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Bibliographic InfoPaper provided by Australian Agricultural and Resource Economics Society in its series 2008 Conference (52nd), February 5-8, 2008, Canberra, Australia with number 6009.
Date of creation: 2008
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