IDEAS home Printed from https://ideas.repec.org/p/rae/wpaper/201011.html
   My bibliography  Save this paper

Simple econometric models for short term production choices in cropping systems

Author

Listed:
  • Alain Carpentier
  • Elodie Letort

Abstract

The aim of this article is to present new models of acreage choices to describe short term production choices. Its construction combines concepts developed in the Positive Mathematical Programming and Multicrop Econometric literatures. They consider land as an allocable fixed input and motivate crop diversification by decreasing returns to crop area and/or implicit costs generated by constraints on acreage choices and by limiting quantities of quasi-fixed factors. Attractive re-parametrization of the standard quadratic production function and different functional forms for cost function are proposed to have parameters easily interpretable and to define econometric models in a very simple way.

Suggested Citation

  • Alain Carpentier & Elodie Letort, 2010. "Simple econometric models for short term production choices in cropping systems," Working Papers SMART 10-11, INRAE UMR SMART.
  • Handle: RePEc:rae:wpaper:201011
    as

    Download full text from publisher

    File URL: http://www6.rennes.inra.fr/smart/Media/Working-papers/WP10-11
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Thomas Heckelei & Hendrik Wolff, 2003. "Estimation of constrained optimisation models for agricultural supply analysis based on generalised maximum entropy," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 30(1), pages 27-50, March.
    2. Richard E. Just & David Zilberman & Eithan Hochman, 1983. "Estimation of Multicrop Production Functions," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 65(4), pages 770-780.
    3. Robert G. Chambers & Richard E. Just, 1989. "Estimating Multioutput Technologies," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 71(4), pages 980-995.
    4. Richard E. Howitt, 1995. "Positive Mathematical Programming," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(2), pages 329-342.
    5. Oriana Bandiera & Imran Rasul, 2006. "Social Networks and Technology Adoption in Northern Mozambique," Economic Journal, Royal Economic Society, vol. 116(514), pages 869-902, October.
    6. Miranowski, John & Orazem, Peter, 1994. "A Dynamic Model of Acreage Allocation with General and Crop-Specific Capital," Staff General Research Papers Archive 10695, Iowa State University, Department of Economics.
    7. Jean-Paul Chavas & Matthew T. Holt, 1990. "Acreage Decisions Under Risk: The Case of Corn and Soybeans," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 72(3), pages 529-538.
    8. David A. Hennessy, 2006. "On Monoculture and the Structure of Crop Rotations," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(4), pages 900-914.
    9. Guyomard, Herve & Baudry, Marc & Carpentier, Alain, 1996. "Estimating Crop Supply Response in the Presence of Farm Programmes: Application to the CAP," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 23(4), pages 401-420.
    10. Quirino Paris, 2001. "Symmetric Positive Equilibrium Problem: A Framework for Rationalizing Economic Behavior with Limited Information," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(4), pages 1049-1061.
    11. Quirino Paris & Richard E. Howitt, 1998. "An Analysis of Ill-Posed Production Problems Using Maximum Entropy," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(1), pages 124-138.
    12. Alfons Oude Lansink & Spiro Stefanou, 2001. "Dynamic Area Allocation and Economies of Scale and Scope," Journal of Agricultural Economics, Wiley Blackwell, vol. 52(3), pages 38-52, September.
    13. Moore, Michael R. & Negri, Donald H., 1992. "A Multicrop Production Model Of Irrigated Agriculture, Applied To Water Allocation Policy Of The Bureau Of Reclamation," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 17(1), pages 1-15, July.
    14. Alban Thomas, 2003. "A dynamic model of on-farm integrated nitrogen management," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 30(4), pages 439-460, December.
    15. Tegene, Abebayehu & Huffman, Wallace & Miranowski, John, 1988. "An Econometric Model of Dynamic and Stochastic Production with Explicit Optimization: Farmers' Decisions on Corn and Soybean Acreage," Staff General Research Papers Archive 10984, Iowa State University, Department of Economics.
    16. Eckstein, Zvi, 1984. "A Rational Expectations Model of Agricultural Supply," Journal of Political Economy, University of Chicago Press, vol. 92(1), pages 1-19, February.
    17. Livingston, Michael J. & Roberts, Michael J. & Rust, John, 2008. "Optimal Corn and Soybean Rotations," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6213, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    18. Rulon D. Pope & Richard E. Just, 2003. "Distinguishing Errors in Measurement from Errors in Optimization," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(2), pages 348-358.
    19. Peter F. Orazem & John A. Miranowski, 1994. "A Dynamic Model of Acreage Allocation with General and Crop-Specific Soil Capital," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 76(3), pages 385-395.
    20. Barry T. Coyle, 1992. "Risk Aversion and Price Risk in Duality Models of Production: A Linear Mean-Variance Approach," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(4), pages 849-859.
    21. Howard D. Leathers, 1991. "Allocable Fixed Inputs as a Cause of Joint Production: A Cost Function Approach," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 73(4), pages 1083-1090.
    22. Gary D. Lynne, 1988. "Allocatable Fixed Inputs and Jointness in Agricultural Production: Implications For Economic Modeling: Comment," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 70(4), pages 947-949.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Keita, Moussa, 2012. "Impact of subsidized inputs credits on land allocation and market-oriented agriculture in rural households in Mali," MPRA Paper 57542, University Library of Munich, Germany.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Carpentier, Alain & Letort, Elodie, 2009. "Modeling acreage decisions within the multinomial Logit framework," Working Papers 211011, Institut National de la recherche Agronomique (INRA), Departement Sciences Sociales, Agriculture et Alimentation, Espace et Environnement (SAE2).
    2. CARPENTIER, Alain & GOHIN, Alexandre & SCKOKAI, Paolo & THOMAS, Alban, 2015. "Economic modelling of agricultural production: past advances and new challenges," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement (RAEStud), Institut National de la Recherche Agronomique (INRA), vol. 96(1), March.
    3. Carpentier, Alain & Gohin, Alexandre, 2015. "On the economic theory of crop rotations: value of the crop rotation effects and implications on acreage choice modeling," Working Papers 205299, Institut National de la recherche Agronomique (INRA), Departement Sciences Sociales, Agriculture et Alimentation, Espace et Environnement (SAE2).
    4. Alain Carpentier & Elodie Letort, 2014. "Multicrop Production Models with Multinomial Logit Acreage Shares," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 59(4), pages 537-559, December.
    5. Carpentier, Alain & Gohin, Alexandre, 2014. "Accounting for crop rotations in acreage choice modeling: a tractable modeling framework," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182799, European Association of Agricultural Economists.
    6. Weng, Weizhe & Cobourn, Kelly M. & Kemanian, Armen R. & Boyle, Kevin J. & Shi, Yuning & Stachelek, Joseph & White, Charles, 2020. "Quantifying Co-Benefits of Water Quality Policies: An Integrated Assessment Model of Nitrogen Management," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304667, Agricultural and Applied Economics Association.
    7. Viaggi, Davide & Raggi, Meri & Gomez y Paloma, Sergio, 2011. "Farm-household investment behaviour and the CAP decoupling: Methodological issues in assessing policy impacts," Journal of Policy Modeling, Elsevier, vol. 33(1), pages 127-145, January.
    8. Hyunseok Kim & GianCarlo Moschini, 2018. "The Dynamics of Supply: U.S. Corn and Soybeans in the Biofuel Era," Land Economics, University of Wisconsin Press, vol. 94(4), pages 593-613.
    9. Obafèmi P. Koutchadé & Alain Carpentier & Fabienne Femenia, 2021. "Modeling Corners, Kinks, and Jumps in Crop Acreage Choices: Impacts of the EU Support to Protein Crops," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(4), pages 1502-1524, August.
    10. Polome, Philippe & Fernagut, Bruno & Harmignie, Olivier & Frahan, Bruno Henry de, 2005. "Multi-input Multi-output Farm-level Cost Function: A Comparison of Least Squares and Entropy Estimators," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24727, European Association of Agricultural Economists.
    11. Bareille, Francois & Letort, Elodie & Dupraz, Pierre, 2017. "How Do Farmers Manage Their Biodiversity Through Time? A Dynamic Acreage Allocation Model With Productive Feedback," 2017 International Congress, August 28-September 1, 2017, Parma, Italy 260894, European Association of Agricultural Economists.
    12. Letort, Elodie & Carpentier, Alain, 2009. "On Modelling Acreage Decisions within the Multinomial Logit Framework," 2009 Conference, August 16-22, 2009, Beijing, China 51615, International Association of Agricultural Economists.
    13. Britz, Wolfgang & Linda, Arata, "undated". "How Important Are Crop Shares In Managing Risk For Specialized Arable Farms? A Panel Estimation Of A Programming Model For Three European Regions," 56th Annual Conference, Bonn, Germany, September 28-30, 2016 244801, German Association of Agricultural Economists (GEWISOLA).
    14. Hongli Feng & Bruce A. Babcock, 2010. "Impacts of Ethanol on Planted Acreage in Market Equilibrium," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 92(3), pages 789-802.
    15. Msangi, Siwa & Howitt, Richard E., 2006. "Estimating Disaggregate Production Functions: An Application to Northern Mexico," 2006 Annual meeting, July 23-26, Long Beach, CA 21080, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    16. Kwon, Oh Sang & Yun, Won-Cheol, 2003. "Measuring economies of scope for cogeneration systems in Korea: a nonparametric approach," Energy Economics, Elsevier, vol. 25(4), pages 331-338, July.
    17. Ibirénoyé Romaric Sodjahin & Fabienne Femenia & Obafemi Philippe Koutchade & A. Carpentier, 2022. "On the economic value of the agronomic effects of crop diversification for farmers: estimation based on farm cost accounting data [Valeur économique des effets agronomiques de la diversification de," Working Papers hal-03639951, HAL.
    18. Koutchade, Philippe & Carpentier, Alain & Féménia, Fabienne, 2015. "Empirical modeling of production decisions of heterogeneous farmers with random parameter models," Working Papers 210097, Institut National de la recherche Agronomique (INRA), Departement Sciences Sociales, Agriculture et Alimentation, Espace et Environnement (SAE2).
    19. Femenia, F. & Carpentier, A. & Gohin, A. & Sodjadhin, R., 2018. "Using farm accountancy data to estimate crop rotation effects," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277161, International Association of Agricultural Economists.
    20. Fragoso, R. & Marques, C. & Lucas, M.R. & Martins, M.B. & Jorge, R., 2011. "The economic effects of common agricultural policy on Mediterranean montado/dehesa ecosystem," Journal of Policy Modeling, Elsevier, vol. 33(2), pages 311-327, March.

    More about this item

    Keywords

    Acreage share; Production function; Multicrop econometric model; Positive Mathematical Programming;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    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:rae:wpaper:201011. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Anne Chauvel (email available below). General contact details of provider: https://edirc.repec.org/data/inrarfr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.