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

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Author Info
Arfini, F.
Donati, M.
Paris, Q.
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.

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Paper provided by European Association of Agricultural Economists in its series 2008 International Congress, August 26-29, 2008, Ghent, Belgium with number 44008.

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Date of creation: 2008
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Handle: RePEc:ags:eaae08:44008

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Related research
Keywords: Positive mathematical programming; Demand function; Agricultural policies evaluation; Agricultural and Food Policy; Demand and Price Analysis;

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References listed on IDEAS
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  1. 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 for the Foundation for the European Review of Agricultural Economics, vol. 30(1), pages 27-50, March.
  2. 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, Blackwell Publishing, vol. 50(3), pages 425-439. [Downloadable!] (restricted)
  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 for the Foundation for the European Review of Agricultural Economics, vol. 25(2), pages 188-209.
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