Farm production costs estimation trough PMP Models: an application in three Italian Regions
The objective of this paper is to present a Generalised Positive Mathematical Programming model suitable for the estimation of variable cost of production associated with different farm activities. This work present, discuss and demonstrates that the Generalised PMP model is a useful theoretical framework for the representation of farm choice, including for the description of costs related to the production function chosen by each entrepreneur. For this characteristics the model can be used for the farms belonging the FADN sample providing a powerful tools for researcher that would like to know variable costs of production for agricultural activities or estimate the impact of agricultural policy and market reform at regional and sectorial level. The main feature of the generalised PMP model is its independence from any “external” information, included the support value of the GME parameters and the abandon of the “tautology” problem always present in the standard PMP models. The paper also present the results of the cost estimation process and validate it comparing the observed variable cost with the estimated variable cost related to a sample of 738 farms belonging the FADN data base of three Italian regions.
|Date of creation:||2012|
|Date of revision:|
|Contact details of provider:|| Web page: http://www.aieaa.org/|
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Quirino Paris & Richard E. Howitt, 1998. "An Analysis of Ill-Posed Production Problems Using Maximum Entropy," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(1), pages 124-138.
- Miller, Douglas & Lence, Sergio H., 1998.
"Estimation of Multi-Output Production Functions with Incomplete Data: A Generalized Maximum Entropy Approach,"
Staff General Research Papers
1219, Iowa State University, Department of Economics.
- Lence, Sergio H & Miller, Douglas J, 1998. "Estimation of Multi-output Production Functions with Incomplete Data: A Generalised Maximum Entropy Approach," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 25(2), pages 188-209.
- Gocht, Alexander & Britz, Wolfgang, 2011. "EU-wide farm type supply models in CAPRI--How to consistently disaggregate sector models into farm type models," Journal of Policy Modeling, Elsevier, vol. 33(1), pages 146-167, January.
- Arriaza, M. & Gomez-Limon, J. A., 2003. "Comparative performance of selected mathematical programming models," Agricultural Systems, Elsevier, vol. 77(2), pages 155-171, August.
- Argyris Kanellopoulos & Paul Berentsen & Thomas Heckelei & Martin van Ittersum & Alfons Oude Lansink, 2010. "Assessing the Forecasting Performance of a Generic Bio-Economic Farm Model Calibrated With Two Different PMP Variants," Journal of Agricultural Economics, Wiley Blackwell, vol. 61(2), pages 274-294.
- Severini, Simone & Cortignani, Raffaele, 2011. "Modeling farmer participation to a revenue insurance scheme by means of Positive Mathematical Programming," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 116001, European Association of Agricultural Economists.
- Thomas Heckelei & Hendrik Wolff, 2003. "Estimation of constrained optimisation models for agricultural supply analysis based on generalised maximum entropy," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 30(1), pages 27-50, March.
- Ottmar R�hm & Stephan Dabbert, 2003. "Integrating Agri-Environmental Programs into Regional Production Models: An Extension of Positive Mathematical Programming," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(1), pages 254-265.
- Golan, Amos & Judge, George G. & Miller, Douglas, 1996. "Maximum Entropy Econometrics," Staff General Research Papers 1488, Iowa State University, Department of Economics.
When requesting a correction, please mention this item's handle: RePEc:ags:aieacp:124117. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.