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The theoretical structure of producer willingness to pay estimates

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  • Samuel D. Zapata
  • Carlos E. Carpio

Abstract

This article analyzes the theoretical underpinnings of producer willingness to pay (WTP) for new inputs. In addition to conceptualizing the producer WTP function, we derive its comparative statics and show how these properties can be used to estimate quantities demanded or supplied and price elasticities. We also discuss implications of the comparative statics.

Suggested Citation

  • Samuel D. Zapata & Carlos E. Carpio, 2014. "The theoretical structure of producer willingness to pay estimates," Agricultural Economics, International Association of Agricultural Economists, vol. 45(5), pages 613-623, September.
  • Handle: RePEc:bla:agecon:v:45:y:2014:i:5:p:613-623
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    File URL: http://hdl.handle.net/10.1111/agec.12110
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    4. Murphy, David M. A., 2017. "Underground Knowledge: Soil Testing, Farmer Learning, and Input Demand in Kenya," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258372, Agricultural and Applied Economics Association.

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