IDEAS home Printed from https://ideas.repec.org/p/ags/eaae08/44008.html
   My bibliography  Save this paper

Innovation in Estimation of Revenue and Cost Functions in PMP Using FADN Information at Regional Level

Author

Listed:
  • Arfini, Filippo
  • Donati, Michele
  • Paris, Quirino

Abstract

The objective of this paper is to present an evolution of PMP model suitable to estimate the revenue function and to provide price elasticity due to the variation of subsidies at farm level, especially if they are decoupled. This problem arises when individual data of farm households in a given region, coming from FADN, are used for implement PMP models finalized to policy analysis. This paper presents the theoretical background of the proposed innovations and empirical evidence on the basis of a sample of farms included in FADN database in Italy.

Suggested Citation

  • Arfini, Filippo & Donati, Michele & Paris, Quirino, 2008. "Innovation in Estimation of Revenue and Cost Functions in PMP Using FADN Information at Regional Level," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44008, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae08:44008
    DOI: 10.22004/ag.econ.44008
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/44008/files/379.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.44008?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. 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, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 34(1), pages 21-52, March.
    2. Thomas Heckelei & Hendrik Wolff, 2003. "Estimation of constrained optimisation models for agricultural supply analysis based on generalised maximum entropy," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 30(1), pages 27-50, March.
    3. 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, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 25(2), pages 188-209.
    4. Heckelei, Thomas & Britz, Wolfgang, 2000. "Positive Mathematical Programming with Multiple Data Points: A Cross-Sectional Estimation Procedure," Cahiers d'Economie et de Sociologie Rurales (CESR), Institut National de la Recherche Agronomique (INRA), vol. 57.
    5. Richard E. Howitt, 1995. "Positive Mathematical Programming," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(2), pages 329-342.
    6. Heckelei, Thomas & Britz, Wolfgang, 2005. "Models Based on Positive Mathematical Programming: State of the Art and Further Extensions," 89th Seminar, February 2-5, 2005, Parma, Italy 234607, European Association of Agricultural Economists.
    7. Yves Léon & Ludo Peeters & Maurice Quinqu & Yves Surry, 1999. "The use of maximum entropy to estimate input-output coefficients from regional farm accounting data," Post-Print hal-01931589, HAL.
    8. Golan, Amos & Judge, George G. & Miller, Douglas, 1996. "Maximum Entropy Econometrics," Staff General Research Papers Archive 1488, Iowa State University, Department of Economics.
    9. Quirino Paris, 2001. "Symmetric Positive Equilibrium Problem: A Framework for Rationalizing Economic Behavior with Limited Information," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(4), pages 1049-1061.
    10. 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, September.
    11. Alexandre Gohin & Frédéric Chantreuil, 1999. "La programmation mathématique positive dans les modèles d'exploitation agricole : Principes et importance du calibrage," Cahiers d'Economie et Sociologie Rurales, INRA Department of Economics, vol. 52, pages 59-78.
    12. 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.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Rui Fragoso & Carlos Marques & Maria Raquel Lucas & Maria Belém Martins & Raúl Fernandes Jorge, 2009. "The Economic Effects of Common Agricultural Policy Trends on Montado Ecosystem in Southern Portugal," CEFAGE-UE Working Papers 2009_12, University of Evora, CEFAGE-UE (Portugal).
    2. Zhou, Wei, 2015. "Three essays on modeling biofuel feedstock supply," ISU General Staff Papers 201501010800005728, Iowa State University, Department of Economics.
    3. Zhou, Wei & Babcock, Bruce A., 2014. "Endogenous Price in a Dynamic Model for Agricultural Supply Analysis," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170584, Agricultural and Applied Economics Association.
    4. Fragoso, R. & Marques, C. & Lucas, M.R. & Martins, M.B. & Jorge, R., 2011. "The economic effects of common agricultural policy on Mediterranean montado/dehesa ecosystem," Journal of Policy Modeling, Elsevier, vol. 33(2), pages 311-327, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Arfini, Filippo & Donati, Michele & Grossi, L. & Paris, Quirino, 2008. "Revenue and Cost Functions in PMP: a Methodological Integration for a Territorial Analysis of CAP," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6636, European Association of Agricultural Economists.
    2. Frahan, Bruno Henry de, 2005. "PMP, Extensions and Alternative Methods: Introductory Review of the State of the Art," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24537, European Association of Agricultural Economists.
    3. Arfini, Filippo & Donati, Michele & Marongiu, Sonia & Cesaro, Luca, 2012. "Farm production costs estimation trough PMP Models: an application in three Italian Regions," 2012 First Congress, June 4-5, 2012, Trento, Italy 124117, Italian Association of Agricultural and Applied Economics (AIEAA).
    4. Louhichi, Kamel & Jacquet, Florence & Butault, Jean Pierre, 2012. "Estimating input allocation from heterogeneous data sources: A comparison of alternative estimation approaches," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 13(2), pages 1-20.
    5. Heckelei, Thomas & Britz, Wolfgang, 2005. "Models Based on Positive Mathematical Programming: State of the Art and Further Extensions," 89th Seminar, February 2-5, 2005, Parma, Italy 234607, European Association of Agricultural Economists.
    6. Fragoso, R. & Marques, C. & Lucas, M.R. & Martins, M.B. & Jorge, R., 2011. "The economic effects of common agricultural policy on Mediterranean montado/dehesa ecosystem," Journal of Policy Modeling, Elsevier, vol. 33(2), pages 311-327, March.
    7. Petsakos, Athanasios & Rozakis, Stelios, 2015. "Calibration of agricultural risk programming models," European Journal of Operational Research, Elsevier, vol. 242(2), pages 536-545.
    8. Gocht, Alexander, 2005. "Assessment of Simulation Behavior of Different Mathematical Programming Approaches," 89th Seminar, February 2-5, 2005, Parma, Italy 232598, European Association of Agricultural Economists.
    9. Thomas Heckelei & Wolfgang Britz, 2000. "Positive Mathematical Programming with Multiple Data Points: A Cross-Sectional Estimation Procedure," Cahiers d'Economie et Sociologie Rurales, INRA Department of Economics, vol. 57, pages 27-50.
    10. Heckelei, Thomas & Britz, Wolfgang & Zhang, Yinan, 2012. "Positive Mathematical Programming Approaches – Recent Developments in Literature and Applied Modelling," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 1(1), pages 1-16, April.
    11. Msangi, Siwa & Howitt, Richard E., 2006. "Estimating Disaggregate Production Functions: An Application to Northern Mexico," 2006 Annual meeting, July 23-26, Long Beach, CA 21080, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    12. Kamel Elouhichi & Pascal Tillie & Aymeric Ricome & Sergio Gomez-Y-Paloma, 2020. "Modelling Farm-household Livelihoods in Developing Economies: Insights from three country case studies using LSMS-ISA data," JRC Research Reports JRC118822, Joint Research Centre.
    13. Doole, Graeme J. & Marsh, Dan K., 2014. "Methodological limitations in the evaluation of policies to reduce nitrate leaching from New Zealand agriculture," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 58(1), January.
    14. Gocht, Alexander, 2008. "Estimating input allocation for farm supply models," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6469, European Association of Agricultural Economists.
    15. Heckelei, Thomas & Mittelhammer, Ronald C. & Jansson, Torbjorn, 2008. "A Bayesian Alternative To Generalized Cross Entropy Solutions For Underdetermined Econometric Models," Discussion Papers 56973, University of Bonn, Institute for Food and Resource Economics.
    16. Kamel Elouhichi & Maria Espinosa Goded & Pavel Ciaian & Angel Perni Llorente & Bouda Vosough Ahmadi & Liesbeth Colen & Sergio Gomez Y Paloma, 2018. "The EU-Wide Individual Farm Model for Common Agricultural Policy Analysis (IFM-CAP v.1): Economic Impacts of CAP Greening," JRC Research Reports JRC108693, Joint Research Centre.
    17. Polome, Philippe & Fernagut, Bruno & Harmignie, Olivier & Frahan, Bruno Henry de, 2005. "Multi-input Multi-output Farm-level Cost Function: A Comparison of Least Squares and Entropy Estimators," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24727, European Association of Agricultural Economists.
    18. Affuso, Ermanno & Hite, Diane, 2013. "A model for sustainable land use in biofuel production: An application to the state of Alabama," Energy Economics, Elsevier, vol. 37(C), pages 29-39.
    19. Kamel Louhichi & Pascal Tillie & Aymeric Ricome & Sergio Gomez y Paloma, 2020. "Modelling Farm-household Livelihoods in Developing Economies Insights from three country case studies using LSMS-ISA data [Modélisation des moyens de subsistance des ménages agricoles dans les écon," Post-Print hal-02544905, HAL.
    20. Cortignani, Raffaele & Severini, Simone, 2010. "The impact of reforming the Common Agricultural Policy on the sustainability of the irrigated area of Central Italy. An empirical assessment by means of a Positive Mathematical Programming model," 120th Seminar, September 2-4, 2010, Chania, Crete 109318, European Association of Agricultural Economists.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:eaae08:44008. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/eaaeeea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.