Farm production costs estimation trough PMP Models: an application in three Italian Regions
AbstractThe objective of this paper is to present a Generalised Positive Mathematical Programming model suitable for the estimation of variable cost of production associated with different farm activities. This work present, discuss and demonstrates that the Generalised PMP model is a useful theoretical framework for the representation of farm choice, including for the description of costs related to the production function chosen by each entrepreneur. For this characteristics the model can be used for the farms belonging the FADN sample providing a powerful tools for researcher that would like to know variable costs of production for agricultural activities or estimate the impact of agricultural policy and market reform at regional and sectorial level. The main feature of the generalised PMP model is its independence from any “external” information, included the support value of the GME parameters and the abandon of the “tautology” problem always present in the standard PMP models. The paper also present the results of the cost estimation process and validate it comparing the observed variable cost with the estimated variable cost related to a sample of 738 farms belonging the FADN data base of three Italian regions.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Italian Association of Agricultural and Applied Economics (AIEAA) in its series Congress Papers with number 124117.
Date of creation: 2012
Date of revision:
variable cost of production; positive mathematical programming; farm accountancy data network; Production Economics; Q12; C61; Q18; C38;
Find related papers by JEL classification:
- Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
- C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
- Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy
- C38 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Classification Methdos; Cluster Analysis; Principal Components; Factor Analysis
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-06-25 (All new papers)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Gocht, Alexander & Britz, Wolfgang, 2011. "EU-wide farm type supply models in CAPRI--How to consistently disaggregate sector models into farm type models," Journal of Policy Modeling, Elsevier, vol. 33(1), pages 146-167, January.
- Argyris Kanellopoulos & Paul Berentsen & Thomas Heckelei & Martin van Ittersum & Alfons Oude Lansink, 2010. "Assessing the Forecasting Performance of a Generic Bio-Economic Farm Model Calibrated With Two Different PMP Variants," Journal of Agricultural Economics, Wiley Blackwell, vol. 61(2), pages 274-294.
- Lence, Sergio H & Miller, Douglas J, 1998.
"Estimation of Multi-output Production Functions with Incomplete Data: A Generalised Maximum Entropy Approach,"
European Review of Agricultural Economics,
Foundation for the European Review of Agricultural Economics, vol. 25(2), pages 188-209.
- Miller, Douglas & Lence, Sergio H., 1998. "Estimation of Multi-Output Production Functions with Incomplete Data: A Generalized Maximum Entropy Approach," Staff General Research Papers 1219, Iowa State University, Department of Economics.
- Quirino Paris & Richard E. Howitt, 1998. "An Analysis of Ill-Posed Production Problems Using Maximum Entropy," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(1), pages 124-138.
- Arriaza, M. & Gomez-Limon, J. A., 2003. "Comparative performance of selected mathematical programming models," Agricultural Systems, Elsevier, vol. 77(2), pages 155-171, August.
- Severini, Simone & Cortignani, Raffaele, 2011. "Modeling farmer participation to a revenue insurance scheme by means of Positive Mathematical Programming," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 116001, European Association of Agricultural Economists.
- Ottmar R�hm & Stephan Dabbert, 2003. "Integrating Agri-Environmental Programs into Regional Production Models: An Extension of Positive Mathematical Programming," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(1), pages 254-265.
- Thomas Heckelei & Hendrik Wolff, 2003. "Estimation of constrained optimisation models for agricultural supply analysis based on generalised maximum entropy," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 30(1), pages 27-50, March.
- Golan, Amos & Judge, George G. & Miller, Douglas, 1996. "Maximum Entropy Econometrics," Staff General Research Papers 1488, Iowa State University, Department of Economics.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).
If references are entirely missing, you can add them using this form.