Producer Behaviour Under Strict Rationing and Quai-Fixed Factors
The paper examines the effect of rationing outputs and inputs on producer behaviour. Full representation of the modified supply-demand system after rationing, including shadow prices for the constrained netputs, is derived from the unrestricted profit function before rationing, and vice-versa. Attention is focused on cross-price effects which have been less explored than own-price effects which obey to the Le Chatelier principle. The theoretical framework is applied to the EC agricultural sector in order to analyse the effects of output and input rationing on the production structure of the EC agricultural sector, with emphasis on the impact of the milk quota constraint on unrestricted output supplies and input demands.
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- Lee, Lung-Fei & Pitt, Mark M., 1987. "Microeconometric models of rationing, imperfect markets, and non-negativity constraints," Journal of Econometrics, Elsevier, vol. 36(1-2), pages 89-110.
- Lee, Lung-Fei & Pitt, Mark M., 1987. "Microeconometric Models of Rationing, Imperfect Markets, and Non-Negativity Constraints," Bulletins 7470, University of Minnesota, Economic Development Center.
- Sakai, Yasuhiro, 1974. "Substitution and expansion effects in production theory: The case of joint production," Journal of Economic Theory, Elsevier, vol. 9(3), pages 255-274, November.
- Tsigas, Marinos E. & Hertel, Thomas W., 1989. "Testing Dynamic Models Of The Farm Firm," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 14(01), July. Full references (including those not matched with items on IDEAS)
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