IDEAS home Printed from https://ideas.repec.org/p/ags/saea16/230055.html
   My bibliography  Save this paper

Modeling Resource Allocation Decisions in the U.S. Agricultural Sector

Author

Listed:
  • Zhu, Manhong
  • Seale, James L. Jr.

Abstract

We model the U.S. agricultural sector as the producer of multiple goods and services, and we model its resource allocation decisions within a framework based on the theory of multiproduct firms. We estimate an input demand allocation model using maximum likelihood method. The results show that intermediate goods, capital, and labor are all complementary to land, which makes sense in the real agricultural production process. Intermediate goods are substitutes to capital, while labor is complementary to land. Due to the overly aggregated output variables, price changes of output variables do not have significant impact on the demand for inputs, except one case in which 1% price increase of other farm-related products will lead to 0.036% change in the demand for land.

Suggested Citation

  • Zhu, Manhong & Seale, James L. Jr., 2016. "Modeling Resource Allocation Decisions in the U.S. Agricultural Sector," 2016 Annual Meeting, February 6-9, 2016, San Antonio, Texas 230055, Southern Agricultural Economics Association.
    • Handle: RePEc:ags:saea16:230055
    DOI: 10.22004/ag.econ.230055
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/230055/files/Resource_Allocation_Zhu_Seale.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.230055?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
    ---><---

    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:saea16:230055. 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/saeaaea.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.