Estimating the Aggregate Agricultural Supply Response: A Survey of Techniques and Results for Developing Countries
AbstractFor many low-income countries, the impact of structural reforms on economic growth and poverty alleviation crucially depends on the response of aggregate agricultural supply to changing incentives. Despite its policy relevance, the size of this parameter is still largely unknown. This paper discusses the different approaches which may be employed to quantify the agricultural supply response. It turns out that none of these approaches is likely to deliver unbiased estimates. While in cross-country regressions the problem of unobserved country characteristics cannot be fully eliminated, time-series estimations tend to suffer from the Lucas critique. Any comprehensive empirical analysis should thus rely on more than one technique in order to check the robustness of results.
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Bibliographic InfoPaper provided by Kiel Institute for the World Economy in its series Kiel Working Papers with number 1016.
Length: 22 pages
Date of creation: Dec 2000
Date of revision:
agricultural supply response; cross-country regressions; Nerlove method; co-integration; dynamic general equilibrium analysis.;
Find related papers by JEL classification:
- C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
- C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models
- Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices
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