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

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  • Arfini, Filippo
  • Donati, Michele
  • Paris, Quirino
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    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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    File URL: http://purl.umn.edu/44008
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    Bibliographic Info

    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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    1. Yves LĂ©ony & 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.
    2. 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.
    3. 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.
    4. Golan, Amos & Judge, George G. & Miller, Douglas, 1996. "Maximum Entropy Econometrics," Staff General Research Papers 1488, Iowa State University, Department of Economics.
    5. 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.
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