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Measuring Biases of Technical Change: The Case of Cereals Displacement in Livestock Ration Formulation in Belgium

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  • Peeters, Ludo

Abstract

Persistent feed-price distortions brought about by the CAP has favored the use of non-grain resources in livestock feeding in the EU. This paper is concerned with the measurement of the rates and biases of technical change which have led to the displacement of cereals in livestock ration formulation. The analysis is applied to the Belgian compound-feed industry, where the displacement of cereals has been striking. An augmented translog cost function which allows identification of both endogenous (price-induced) and exogenous biases of technical change as well as the calculation of short-run ("static") and long-run ("dynamic") price elasticities offend input demand. Finally, a decomposition analysis is provided, in which changes in the overall proportions of grains and non-grain feeds used by compounders are explained by substitution, output mix changes, and/or technical change biases. Copyright 1995 by Oxford University Press.

Suggested Citation

  • Peeters, Ludo, 1995. "Measuring Biases of Technical Change: The Case of Cereals Displacement in Livestock Ration Formulation in Belgium," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 22(2), pages 137-156.
  • Handle: RePEc:oup:erevae:v:22:y:1995:i:2:p:137-56
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    Cited by:

    1. Ludo Peeters & Yves Surry, 2000. "Incorporating Price-Induced Innovation in a Symmetric Generalised McFadden Cost Function with Several Outputs," Journal of Productivity Analysis, Springer, vol. 14(1), pages 53-70, July.
    2. Sigbjørn Tveterås & Ragnar Tveterås, 2010. "The Global Competition for Wild Fish Resources between Livestock and Aquaculture," Journal of Agricultural Economics, Wiley Blackwell, vol. 61(2), pages 381-397, June.
    3. Giannis Karagiannis & Kostas Velentzas, 1997. "Explaining Food Consumption Patterns In Greece," Journal of Agricultural Economics, Wiley Blackwell, vol. 48(1‐3), pages 83-92, January.
    4. Ludo Peeters & Yves Surry, 1997. "A Review Of The Arts Of Estimating Price‐Responsiveness Of Feed Demand In The European Union," Journal of Agricultural Economics, Wiley Blackwell, vol. 48(1‐3), pages 379-392, January.

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