Estimation of Commodity Specific Production Costs Using German Farm Accountancy Data
A central problem in estimating per unit costs of production originates from the fact that most farms produce multiple outputs and standard farm-accounting data are only available at the whole-farm level. The seemingly unrelated regression (SUR) approach is used to estimate per unit production costs based on German farm accountancy data. Special emphasis is put on outlier detection prior to the estimation of production costs to increase the robustness of the results. Outlier observations are identified based on the Mahalanobis distance for each observation on the data set. It was observed that less negative cost coefficients are estimated after the exclusion of the outliers. The time series analysis of cost estimation based on SUR regression shows the costs of arable crops after 2004, affected by rising prices of fertilizer, seeds and energy, while the increase of livestock production costs after 2006 is attributed to feed costs.
|Date of creation:||2011|
|Date of revision:|
|Contact details of provider:|| Web page: http://www.eaae.org|
More information through EDIRC
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.:
- David Hallam & Alastair Bailey & Philip Jones & Andrew Errington, 1999. "Estimating Input Use and Production Costs From Farm Survey Panel Data," Journal of Agricultural Economics, Wiley Blackwell, vol. 50(3), pages 440-449.
- Nguyen, Duong T.M. & McLaren, Keith Robert & Zhao, Xueyan, 2008. "Multi-Output Broadacre Agricultural Production: Estimating A Cost Function Using Quasi-Micro Farm Level Data From Australia," 2008 Conference (52nd), February 5-8, 2008, Canberra, Australia 6009, Australian Agricultural and Resource Economics Society.
- Yves Léony & Ludo Peeters & Maurice Quinqu & Yves Surry, 1999. "The Use of Maximum Entropy to Estimate Input-Output Coefficients From Regional Farm Accounting Data," Journal of Agricultural Economics, Wiley Blackwell, vol. 50(3), pages 425-439.
- A. Moxey & R. Tiffin, 1994. "Estimating Linear Production Coefficients From Farm Business Survey Data: A Note," Journal of Agricultural Economics, Wiley Blackwell, vol. 45(3), pages 381-385.
- P. Midmore, 1990. "Estimating Input-Output Coefficients From Regional Farm Data-A Comment," Journal of Agricultural Economics, Wiley Blackwell, vol. 41(1), pages 108-111.
- Peeters, Ludo & Surry, Yves R., 2003. "Farm Cost Allocation Based on the Maximum Entropy Methodology - The Case of Saskatchewan Crop Farms," Economic and Market Information 54461, Agriculture and Agri-Food Canada.
- Mack, Gabriele & Mann, Stefan, 2008. "Defining elasticities for PMP models by estimating marginal cost functions based on FADN Data - the case of Swiss dairy production," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6694, European Association of Agricultural Economists.
When requesting a correction, please mention this item's handle: RePEc:ags:eaae11:114233. 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 references are entirely missing, you can add them using this form.