IDEAS home Printed from
   My bibliography  Save this paper

Full Product Costs on Base of Farm Accountancy Data by Means of Maximum Entropy


  • Lips, Markus


The paper presents an approach to allocate joint costs to production branches based on maximum entropy. Using bookkeeping data from the Farm Accountancy Data Network (FADN) we derive full product costs. Accordingly, the suggested approach offers the opportunity of full product costs based on actual costing rather than normal costing. The approach is applied for arable crop in Switzerland providing full product costs on a hectare base. The resulting total costs are up to 20 percent higher than in literature. An important reason is labour, which shows for all analysed production branches higher costs than in the actual costing based literature.

Suggested Citation

  • Lips, Markus, 2009. "Full Product Costs on Base of Farm Accountancy Data by Means of Maximum Entropy," 2009 Conference, August 16-22, 2009, Beijing, China 51088, International Association of Agricultural Economists.
  • Handle: RePEc:ags:iaae09:51088

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Golan, Amos & Judge, George G. & Miller, Douglas, 1996. "Maximum Entropy Econometrics," Staff General Research Papers Archive 1488, Iowa State University, Department of Economics.
    2. Yves LĂ©ony & 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.
    Full references (including those not matched with items on IDEAS)

    More about this item


    Full Product Costs; Maximum Entropy; FADN; Arable Crops; Farm Management; M41; Q12;

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:iaae09:51088. 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). General contact details of provider: .

    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 CitEc recognized a reference but did not link an item in RePEc 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.