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

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Moschini, Giancarlo

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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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Publisher 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: 21 Jan 2004
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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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  2. Krishna P. Paudel & Christopher S. McIntosh, 2005. "Numeraire choice in agricultural supply analysis," Applied Economics, Taylor and Francis Journals, vol. 37(11), pages 1209-1214, June. [Downloadable!] (restricted)
  3. 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. [Downloadable!]
  4. 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 19943, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  5. Meilke, Karl & Sarker, Rakhal & Le Roy, Danny, 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 16959, Farm Foundation, Agricultural and Food Policy Systems Information Workshops. [Downloadable!]
  6. Bezlepkina, Irina & Lansink, Alfons Oude & Oskam, Arie, 2001. "Farm Firm Micro-Econometric Modelling:Empirical Evidence From Russian Dairy Farming," 2001 Annual meeting, August 5-8, Chicago, IL 20464, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  7. Ball, V. Eldon & Moss, Charles B. & Erickson, Kenneth W. & Nehring, Richard, 2003. "Modeling Supply Response In A Multiproduct Framework Revisited: The Nexus Of Empirics And Economics," 2003 Annual meeting, July 27-30, Montreal, Canada 21981, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  8. 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 36409, Western Agricultural Economics Association. [Downloadable!]
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  9. 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 21594, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  10. 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 24049, University of Alberta, Department of Rural Economy. [Downloadable!]
  11. Nguyen, Duong T. M. & McLaren, Keith & 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 6009, Australian Agricultural and Resource Economics Society. [Downloadable!]
  12. Pritchett, James G. & Liu, Donald J., 1998. "Estimating Backward Integration In A Primary Input Market: The Case Of U.S. Hog Industry," Conference Papers 14480, University of Minnesota, Center for International Food and Agricultural Policy. [Downloadable!]
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