Estimating input allocation for farm supply models
AbstractWhen building an economic model for supply analysis the aim is to model a decision making process of one or more agents which fits the observed practice as good as possible. Hereby the modeller is often confronted with incomplete information about the production process; particular crop specific input data are rarely available. The problem of defining activity related technology inputs coefficients is not new. A good deal of literature comes from the mathematical programming perspective, where input coefficients were estimated using a standard linear regression function to fully represent the mathematical program. However this approach is a pure technical device and may result in an inconsistent model. The author of the paper wants to investigate whether it is possible, employing proper estimation techniques, to simultaneously estimate all unknown coefficients of a mathematical farm supply model. This includes the estimation of parameters of the non linear cost function, used to calibrate and catch the simulation behaviour and the crop specific input coefficients. It is shown that a simultaneous estimation of all parameters improves the goodness of fit of the estimated parameters and that such an approach is technically feasible.
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 European Association of Agricultural Economists in its series 107th Seminar, January 30-February 1, 2008, Sevilla, Spain with number 6469.
Date of creation: 2008
Date of revision:
farm supply model; input allocation; entropy; HDP; Research Methods/ Statistical Methods;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-11-25 (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.:
- Yves Léony & Ludo Peeters & Maurice Quinqu & Yves Surry, 1999. "The Use of Maximum Entropy to Estimate Input-Output Coefficients From Regional Farm Accounting Data," Journal of Agricultural Economics, Wiley Blackwell, vol. 50(3), pages 425-439.
- 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.
- 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.
- Jeroen Buysse & Bruno Fernagut & Olivier Harmignie & Bruno Henry de Frahan & Ludwig Lauwers & Philippe Polomé & Guido Van Huylenbroeck & Jef Van Meensel, 2007. "Farm-based modelling of the EU sugar reform: impact on Belgian sugar beet suppliers," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 34(1), pages 21-52, March.
- Asunka, Samuel & Shumway, C. Richard, 1996. "Allocatable Fixed Inputs And Jointness In Agricultural Production: More Implications," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 25(2), October.
- Hasenkamp, Georg, 1976. "A study of multiple-output production functions : Klein's railroad study revisited," Journal of Econometrics, Elsevier, Elsevier, vol. 4(3), pages 253-262, August.
- Guyomard, Herve & Baudry, Marc & Carpentier, Alain, 1996.
"Estimating Crop Supply Response in the Presence of Farm Programmes: Application to the CAP,"
European Review of Agricultural Economics,
Foundation for the European Review of Agricultural Economics, vol. 23(4), pages 401-20.
- Guyomard & Baudry & Carpentier, 1996. "Estimating crop supply response in the presence of farm programmes : application to the CAP," Working Papers 153134, Institut National de la Recherche Agronomique, France.
- A. Moxey & R. Tiffin, 1994. "Estimating Linear Production Coefficients From Farm Business Survey Data: A Note," Journal of Agricultural Economics, Wiley Blackwell, vol. 45(3), pages 381-385.
- Shumway, C. Richard, 1995. "Recent Duality Contributions In Production Economics," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, Western Agricultural Economics Association, vol. 20(01), July.
- P. Midmore, 1990. "Estimating Input-Output Coefficients From Regional Farm Data-A Comment," Journal of Agricultural Economics, Wiley Blackwell, vol. 41(1), pages 108-111.
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.