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Multi-Output Broadacre Agricultural Production: Estimating A Cost Function Using Quasi-Micro Farm Level Data From Australia

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  • Nguyen, Duong T.M.
  • McLaren, Keith Robert
  • Zhao, Xueyan

Abstract

Existing 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 Info

Paper provided by Australian Agricultural and Resource Economics Society in its series 2008 Conference (52nd), February 5-8, 2008, Canberra, Australia with number 6009.

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Date of creation: 2008
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Handle: RePEc:ags:aare08:6009

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Keywords: Production Economics; Research Methods/ Statistical Methods;

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Cited by:
  1. Bahta, Sirak Teclemariam & Berner, Anja & Offermann, Frank, 2011. "Estimation of Commodity Specific Production Costs Using German Farm Accountancy Data," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114233, European Association of Agricultural Economists.
  2. Coleman, Jane A. & Shaik, Saleem, 2009. "Time-Varying Estimation of Crop Insurance Program in Altering North Dakota Farm Economic Structure," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49516, Agricultural and Applied Economics Association.
  3. Vilaphonh Xayavong & Nazrul Islam & Ruhul Salim, 2011. "Estimating Production Response of Broadacre Farms in Western Australia: The Nexus of Empirics and Economics Revisited," Economic Analysis and Policy (EAP), Queensland University of Technology (QUT), School of Economics and Finance, vol. 41(3), pages 217-232, December.

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