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Testing Dynamic Models Of The Farm Firm

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  • Tsigas, Marinos E.
  • Hertel, Thomas W.

Abstract

In this paper two models of dynamic firm behavior are fitted to a data set developed from business records of Indiana dairy farms. The parametric restrictions implied by a cost-of-adjustment model are rejected. A less restrictive, disequilibrium model is accepted; this is a model of partial and interrelated adjustment among inputs and outputs. The results suggest that adjustment in quasi-fixed inputs is slow affecting the adjustment in variable inputs and outputs.

Suggested Citation

  • Tsigas, Marinos E. & Hertel, Thomas W., 1989. "Testing Dynamic Models Of The Farm Firm," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 14(1), pages 1-10, July.
    • Handle: RePEc:ags:wjagec:32465
    DOI: 10.22004/ag.econ.32465
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    References listed on IDEAS

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    Cited by:

    1. Krasachat, W. & Coelli, T. J., 1995. "Dynamics of Agricultural Production on Thailand," 1995 Conference (39th), February 14-16, 1995, Perth, Australia 170898, Australian Agricultural and Resource Economics Society.
    2. Eswaramoorthy, K., 1991. "U.S. livestock production and factor demand: a multiproduct dynamic dual approach," ISU General Staff Papers 1991010108000010523, Iowa State University, Department of Economics.
    3. Richards, Timothy J., 1996. "Economic Hysteresis And The Effects Of Output Regulation," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 21(1), pages 1-17, July.
    4. Turvey, Calum G. & Ifft, Jennifer E. & Carduner, Amy, 2018. "The historical relationship between the U.S. Farm Credit System, Farm Service Agency and commercial bank lending," 2018 Annual Meeting, August 5-7, Washington, D.C. 274120, Agricultural and Applied Economics Association.
    5. Guyomard, Herve & Mahe, Louis Adrien Pascal, 1993. "Producer Behaviour Under Strict Rationing and Quai-Fixed Factors," Bulletins 7489, University of Minnesota, Economic Development Center.

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