IDEAS home Printed from https://ideas.repec.org/p/ags/huiasc/18813.html
   My bibliography  Save this paper

Okonomische Hysterese in der Veredlungsproduktion

Author

Listed:
  • Hinrichs, Jan
  • Musshoff, Oliver
  • Odening, Martin

Abstract

German hog production responds only very limited to price fluctuations in the pork market. The hog production concentrates in a few regions though it does not depend on special natural conditions. Furthermore, the production volume does hardly vary over time. Relatively high market risks, sunk costs, and the flexibility of the decision maker to defer investments characterize decision problems hog production. Thus the real option approach is chosen to explain the inertia in production capacity. Using panel data of specialised hog farms from the German farm accountancy data network (FADN) an empirical investment model is estimated. Formally, the model has the structure of an ordered probit model. This approach allows to test for economic hysteresis in the adjustment of hog production capacity. The results confirm that uncertainty and flexibility widen the optimal range of inaction.

Suggested Citation

  • Hinrichs, Jan & Musshoff, Oliver & Odening, Martin, 2005. "Okonomische Hysterese in der Veredlungsproduktion," Structural Change and Transition in the Agricultural Sector/ Strukturwandel und Transformation im Agrarbereich (SUTRA) Working Papers 18813, Humboldt University Berlin, Department of Agricultural Economics.
    • Handle: RePEc:ags:huiasc:18813
    DOI: 10.22004/ag.econ.18813
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/18813/files/su050003.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.18813?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
    ---><---

    More about this item

    Keywords

    Livestock Production/Industries;

    Statistics

    Access and download statistics

    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:huiasc:18813. 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.

    We have no bibliographic references for this item. You can help adding them by using 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/iahubde.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.