Estimation of Cost Allocation Coefficients at the Farm Level Using an Entropy Approach
AbstractThis paper aims to estimate the farm cost allocation coefficients from whole farm input costs. An entropy approach was developed under a Tobit formulation and was applied to a sample of farms from the 2004 FADN data base for Alentejo region, Southern Portugal. A Generalized Maximum Entropy model and Cross Generalized Entropy model were developed to the sample conditions and were tested. Model results were assessed in terms of their precision and estimation power and were compared with observed data. The entropy approach showed to be a flexible and valid tool to estimate incomplete information, namely regarding farm costs.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University of Evora, CEFAGE-UE (Portugal) in its series CEFAGE-UE Working Papers with number 2011_21.
Length: 21 pages
Date of creation: 2011
Date of revision:
Generalized maximum entropy; costs; estimation; Alentejo; FADN.;
Other versions of this item:
- Rui Fragoso & Maria Leonor da Silva Carvalho, 2013. "Estimation of cost allocation coefficients at the farm level using an entropy approach," Journal of Applied Statistics, Taylor & Francis Journals, vol. 40(9), pages 1893-1906, September.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Paris, Quirino & Caputo, Michael R., 2001. "Sensitivity Of The Gme Estimates To Support Bounds," Working Papers 11966, University of California, Davis, Department of Agricultural and Resource Economics.
- Iain Fraser, 2000. "An application of maximum entropy estimation: the demand for meat in the United Kingdom," Applied Economics, Taylor & Francis Journals, vol. 32(1), pages 45-59.
- Golan, Amos & Judge, George G. & Miller, Douglas, 1996. "Maximum Entropy Econometrics," Staff General Research Papers 1488, Iowa State University, Department of Economics.
- Paul V. Preckel, 2001. "Least Squares and Entropy: A Penalty Function Perspective," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(2), pages 366-377.
- A. Moxey & R. Tiffin, 1994. "Estimating Linear Production Coefficients From Farm Business Survey Data: A Note," Journal of Agricultural Economics, Wiley Blackwell, vol. 45(3), pages 381-385.
- Sergio H. Lence & Douglas J. Miller, 1998.
"Recovering Output-Specific Inputs from Aggregate Input Data: A Generalized Cross-Entropy Approach,"
American Journal of Agricultural Economics,
Agricultural and Applied Economics Association, vol. 80(4), pages 852-867.
- Lence, Sergio H. & Miller, Douglas, 1998. "Recovering Output-Specific Inputs from Aggregate Input Data: A Generalized Cross Entropy Approach," Staff General Research Papers 1305, Iowa State University, Department of Economics.
- 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.
- Zhang, Xiaobo & Fan, Shenggen, 1999.
"Estimating crop-specific production technologies in Chinese agriculture: a generalized maximum entropy approach,"
EPTD discussion papers
50, International Food Policy Research Institute (IFPRI).
- Xiaobo Zhang & Shenggen Fan, 2001. "Estimating Crop-Specific Production Technologies in Chinese Agriculture: A Generalized Maximum Entropy Approach," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(2), pages 378-388.
- Cesaltina Pires & Andreia Dionisio & Luís Coelho, 2010. "GME versus OLS - Which is the best to estimate utility functions?," CEFAGE-UE Working Papers 2010_02, University of Evora, CEFAGE-UE (Portugal).
- Campbell, Randall C. & Hill, R. Carter, 2005. "A Monte Carlo study of the effect of design characteristics on the inequality restricted maximum entropy estimator," Review of Applied Economics, Review of Applied Economics, vol. 1(1).
- Howitt, Richard E. & Reynaud, Arnaud, 2002. "Spatial Disaggregation of Agricultural Production Data," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24961, European Association of Agricultural Economists.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Angela Pacheco).
If references are entirely missing, you can add them using this form.