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.
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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.;
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