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The Model of Demand for Production Factors in Agriculture

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  • Góral, Justyna
  • Rembisz, Włodzimierz

Abstract

This publication is theoretical in nature. It attempts to determine a hypothetical relation between the supply of agricultural production determined by the given demand for it on the one hand and the demand for factors involved in the production on the other. It is included in one model of reasoning with the use of regularities and coefficients known in microeconomics. In particular, the demand, supply and production elasticity coefficients were used. The starting point is assumptions resulting from the demand and three-factor function of production and about rational choices of farm producers. The hypothesis that the relation between supply of production for the demand for it and demand for production factors is determined by changes in production efficiency was positively verified by means of theoretical and formal analysis. This was proved by reference to price elasticity of production and supply and price elasticity of demand for production factors in relation to a product. This is an attempt to fill a research gap in this field.

Suggested Citation

  • Góral, Justyna & Rembisz, Włodzimierz, 2020. "The Model of Demand for Production Factors in Agriculture," Problems of Agricultural Economics / Zagadnienia Ekonomiki Rolnej 311224, Institute of Agricultural and Food Economics - National Research Institute (IAFE-NRI).
    • Handle: RePEc:ags:iafepa:311224
    DOI: 10.22004/ag.econ.311224
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    References listed on IDEAS

    as
    1. Zvi Griliches, 1959. "The Demand for Inputs in Agriculture and a Derived Supply Elasticity," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 41(2), pages 309-322.
    2. Bonnieux, Francois, 1989. "Estimating Regional-Level Input Demand for French Agriculture Using a Translog Production Function," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 16(2), pages 229-241.
    3. Santeramo, Fabio Gaetano, 2014. "On the Estimation of Supply and Demand Elasticities of Agricultural Commodites," MPRA Paper 56126, University Library of Munich, Germany.
    4. Hans P. Binswanger, 1974. "A Cost Function Approach to the Measurement of Elasticities of Factor Demand and Elasticities of Substitution," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 56(2), pages 377-386.
    5. Surjit S. Sidhu & Carlos A. Baanante, 1981. "Estimating Farm-Level Input Demand and Wheat Supply in the Indian Punjab Using a Translog Profit Function," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 63(2), pages 237-246.
    6. Kumar, Praduman, 1975. "An Application of Generalised Least Squares Estimation of Linear Regression Model with Random Coefficients to Paddy Production Function for Sambalpur District (Orissa)," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 30(1), January.
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    8. Maligaya, Arlyn R. & White, Fred C., 1989. "Agricultural Output Supply And Input Demand Relationships With Endogenous Land Rents," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 21(2), pages 1-8, December.
    9. Lopez, Ramon E., 1984. "Estimating labor supply and production decisions of self-employed farm producers," European Economic Review, Elsevier, vol. 24(1), pages 61-82.
    10. Pagoulatos, Angelos & Debertin, David L., 2015. "Linkages among Estimated Technological Parameters, Production, Supply and Input Demand Elasticities for Agricultural Production Functions," Staff Papers 200297, University of Kentucky, Department of Agricultural Economics.
    11. Francois Bonnieux, 1989. "Estimating regional-level input demand for french agriculture using a Translog production function," Post-Print hal-01595670, HAL.
    12. Kumar, Praduman & Shinoj, P. & Raju, S.S. & Kumar, Anjani & Rich, Karl M. & Msangi, Siwa, 2010. "Factor Demand, Output Supply Elasticities and Supply Projections for Major Crops of India," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 23(1), January.
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    More about this item

    Keywords

    Agricultural and Food Policy; Crop Production/Industries; Demand and Price Analysis; Production Economics;
    All these keywords.

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