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Aggregation Bias and Four Methods of Summing Farm Supply Functions

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  • George E. Frick
  • Richard A. Andrews

Abstract

The purpose of this paper was to test several select methods of grouping farms to minimize aggregation bias found in linear programmed area supply functions. These methods considered classification by size and resource mix taken separately and jointly. A method of grouping farms according to the most limiting resource—land, labor, or capital—formed one basis for classification based on the order in which each resource was restrictive. The analysis indicated that this method resulted in the smallest amount of bias of any of the methods tested.

Suggested Citation

  • George E. Frick & Richard A. Andrews, 1965. "Aggregation Bias and Four Methods of Summing Farm Supply Functions," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 47(3), pages 696-700.
    • Handle: RePEc:oup:ajagec:v:47:y:1965:i:3:p:696-700.
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    File URL: http://hdl.handle.net/10.2307/1236282
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    Cited by:

    1. Jansen, Hans G. P. & Stoorvogel, Jetse J., 1998. "Quantification of aggregation bias in regional agricultural land use models: application to Guacimo county, Costa Rica," Agricultural Systems, Elsevier, vol. 58(3), pages 417-439, November.
    2. McCarl, Bruce A., 1987. "Aggregation Of Heterogeneous Firms," 1987 Annual Meeting, August 2-5, East Lansing, Michigan 269919, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Grant, Warren R. & Moore, Donald S., 1970. "Alternative Government Rice Programs: An Economic Evaluation," Agricultural Economic Reports 307408, United States Department of Agriculture, Economic Research Service.
    4. Batterham, Robert L. & MacAulay, T. Gordon, 1994. "Price-Linked Farm And Spatial Equilibrium Models," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 38(2), pages 1-28, August.
    5. Jensen, Harald R., 1977. "PART I. Farm Management and Production Economics, 1946-70," AAEA Monographs, Agricultural and Applied Economics Association, number 337213, january.
    6. Comer, Dorothy A. & Supalla, Raymond J., 1981. "Economic Impacts From Regulating Ground Water Use," 1981 Annual Meeting, July 26-29, Clemson, South Carolina 279285, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    7. Onal, Hayri & McCarl, Bruce A., 1991. "Aggregation In Mathematical Programming Sector Models And Model Stability," 1991 Annual Meeting, August 4-7, Manhattan, Kansas 271241, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    8. Feuz, Dillon M. & Skold, Melvin D., 1990. "Typical Farm Theory in Agricultural Research," Economics Staff Papers 232175, South Dakota State University, Department of Economics.
    9. Driver, H.C. & Tran, H.Q. & Lane, S.H, 1978. "A Supply Response Analysis of Industrial Bulk Milk Producers in Southwestern Ontario," Working Papers 245004, University of Guelph, Department of Food, Agricultural and Resource Economics.

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