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An Analytical Framework For Examining Investment In Agriculture

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  • LeBlanc, Michael
  • Hrubovcak, James

Abstract

A theoretically consistent analytical framework for examining agricultural investment is developed. Results from duality theory on restricted variable profit functions are incorporated into a longrun dynamic optimization framework where input use is affected by external adjustment costs. The complete system allows the calculation of optimal input use, short-, intermediate-, and longrun input demand elasticities, output, profit, and the timepath of input adjustments to optimal levels.

Suggested Citation

  • LeBlanc, Michael & Hrubovcak, James, 1984. "An Analytical Framework For Examining Investment In Agriculture," Staff Reports 277581, United States Department of Agriculture, Economic Research Service.
    • Handle: RePEc:ags:uerssr:277581
    DOI: 10.22004/ag.econ.277581
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    References listed on IDEAS

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