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Model of Production with Supply Management for the Canadian Agricultural Sector, A

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  • Moschini, GianCarlo

Abstract

The production structure of the Canadian agricultural sector is modeled by an output-constrained multiproduct profit function to account for the existence of supply management policies. The le Chatelier effects of supply constraints are illustrated, and the comparative statics of supply management is shown to depend, under input normality, on the type of jointness. Convexity is tested and accepted, and nonjointness is rejected by the estimated normalized quadratic profit function. The results support the hypothesis of nonjointness due to allocatable fixed factors. Decreasing the supply of managed commodities will increase the supply of unrestricted commodities, while total input use is reduced.

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Bibliographic Info

Paper provided by Iowa State University, Department of Economics in its series Staff General Research Papers with number 11269.

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Date of creation: 01 May 1988
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Publication status: Published in American Journal of Agricultural Economics, May 1988, vol. 70 no. 2, pp. 318-329
Handle: RePEc:isu:genres:11269

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Postal: Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070
Phone: +1 515.294.6741
Fax: +1 515.294.0221
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Web page: http://www.econ.iastate.edu
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Cited by:
  1. Ball, V. Eldon & Moss, Charles B. & Erickson, Kenneth W. & Nehring, Richard F., 2003. "Modeling Supply Response In A Multiproduct Framework Revisited: The Nexus Of Empirics And Economics," 2003 Annual meeting, July 27-30, Montreal, Canada, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) 21981, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  2. Friesen, J. & Capalbo, S. & Denny, M., 1992. "Dynamic factor demand equations in U.S. and Canadian agriculture," Agricultural Economics: The Journal of the International Association of Agricultural Economists, International Association of Agricultural Economists, International Association of Agricultural Economists, vol. 6(3), February.
  3. Bezlepkina, Irina V. & Oude Lansink, Alfons G.J.M. & Oskam, Arie J., 2001. "Farm Firm Micro-Econometric Modelling:Empirical Evidence From Russian Dairy Farming," 2001 Annual meeting, August 5-8, Chicago, IL, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) 20464, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  4. Pritchett, James G. & Liu, Donald J., 1999. "Modeling Price Impacts Of Backward Vertical Integration In The Us Pork Industry," 1999 Annual meeting, August 8-11, Nashville, TN, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) 21594, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  5. Shumway, C. Richard, 1993. "Production economics: Worthwhile investment?," Agricultural Economics, Blackwell, Blackwell, vol. 9(2), pages 89-108, August.
  6. Bouamra-Mechemache, Zohra & Ali-Kein, Hela Hadj & Jongeneel, Roelof A. & Tonini, Axel & Requillart, Vincent, 2005. "EU Dairy Sector: Impact of Luxemburg Reform, EU Enlargement and Trade Negotiations," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark, European Association of Agricultural Economists 24581, European Association of Agricultural Economists.
  7. Perekhozhuk, Oleksandr, 2007. "Marktstruktur und Preisbildung auf dem ukrainischen Markt für Rohmilch
    [Market structure and pricing on the Ukrainian market for raw milk]
    ," MPRA Paper 21958, University Library of Munich, Germany.
  8. Pritchett, James G. & Liu, Donald J., 1998. "Estimating Backward Integration In A Primary Input Market: The Case Of U.S. Hog Industry," Conference Papers, University of Minnesota, Center for International Food and Agricultural Policy 14480, University of Minnesota, Center for International Food and Agricultural Policy.
  9. Unterschultz, James R. & Jeffrey, Scott R. & Quagrainie, Kwamena K., 2000. "Value-Adding 20 Billion By 2005: Impact At The Alberta Farm Gate," Project Report Series, University of Alberta, Department of Resource Economics and Environmental Sociology 24049, University of Alberta, Department of Resource Economics and Environmental Sociology.
  10. Meilke, Karl D. & Sarker, Rakhal & Le Roy, Danny G., 1996. "Analyzing The Potential For Increased Trade In Dairy Products: A Canadian Perspective," Understanding Canada\United States Dairy Disputes; Proceedings of the 2nd Canada\U.S. Agricultural and Food Policy Systems Information Workshop-1996, Farm Foundation, Agricultural and Food Policy Syst 16959, Farm Foundation, Agricultural and Food Policy Systems Information Workshops.
  11. Wieck, Christine & Heckelei, Thomas, 2004. "Development Of Marginal Cost Distributions In Dairy Production Regions Of The Eu," 2004 Annual meeting, August 1-4, Denver, CO, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) 19943, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  12. Oyewumi, Olubukola, 2013. "Allocative Efficiency, Supply Management And Canadian Agriculture," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C., Agricultural and Applied Economics Association 150788, Agricultural and Applied Economics Association.
  13. Paudel, Krishna P. & McIntosh, Christopher S., 1998. "Numeraire Choice In Agricultural Supply Analysis," 1998 Annual meeting, August 2-5, Salt Lake City, UT, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) 20962, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  14. Considine, Timothy J. & Larson, Donald F., 2006. "The environment as a factor of production," Journal of Environmental Economics and Management, Elsevier, vol. 52(3), pages 645-662, November.
  15. Lusk, Jayson L. & Marsh, Thomas L., 2000. "Wholesale Demand For Usda Quality Graded Boxed Beef And Effects Of Seasonality," 2000 Annual Meeting, June 29-July 1, 2000, Vancouver, British Columbia, Western Agricultural Economics Association 36409, Western Agricultural Economics Association.
  16. Larson, Donald F. & Glance, Simon & Borrell, Brent & Ingco, Merlinda & Coleman, Jonathan, 1991. "Abolishing green rates : the effects on cereals, sugar, and oilseeds in West Germany," Policy Research Working Paper Series 607, The World Bank.
  17. Nguyen, Duong T.M. & McLaren, Keith Robert & Zhao, Xueyan, 2008. "Multi-Output Broadacre Agricultural Production: Estimating A Cost Function Using Quasi-Micro Farm Level Data From Australia," 2008 Conference (52nd), February 5-8, 2008, Canberra, Australia, Australian Agricultural and Resource Economics Society 6009, Australian Agricultural and Resource Economics Society.

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