Why Are Estimates of Agricultural Supply Response So Variable?
Estimates of the response of agricultural supply to movements in expected price display curiously large variation across crops, regions, and time periods. We argue that this anomoly may be traced, at least in part, to the statistical properties of the commonly-used econometric estimator, which has infinite moments of all orders and may have a bimodal distribution. We propose an alternative minimum- expected-loss estimator, establish its improved sampling properties, and argue for its usefulness in the empirical analysis of agricultural supply response.
(This abstract was borrowed from another version of this item.)
|Date of creation:|
|Publication status:||published in the Journal of Econometrics|
|Contact details of provider:|| Postal: 160 McNeil Building, 3718 Locust Walk, Philadelphia, PA 19104-6297|
Web page: http://www.econ.upenn.edu/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Park, Soo-Bin, 1982. "Some sampling properties of minimum expected loss (MELO) estimators of structural coefficients," Journal of Econometrics, Elsevier, vol. 18(3), pages 295-311, April.
- Zaman, Asad, 1981. "Estimators without moments : The case of the reciprocal of a normal mean," Journal of Econometrics, Elsevier, vol. 15(2), pages 289-298, February.
- Zellner, Arnold, 1985. "Bayesian Econometrics," Econometrica, Econometric Society, vol. 53(2), pages 253-269, March.
- Zellner, Arnold & Geisel, Martin S, 1970. "Analysis of Distributed Lag Models with Application to Consumption Function Estimation," Econometrica, Econometric Society, vol. 38(6), pages 865-888, November.
- Fomby, Thomas B. & Guilkey, David K., 1978. "On choosing the optimal level of significance for the Durbin-Watson test and the Bayesian alternative," Journal of Econometrics, Elsevier, vol. 8(2), pages 203-213, October.
- Askari, Hossein & Cummings, John Thomas, 1977. "Estimating Agricultural Supply Response with the Nerlove Model: A Survey," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 18(2), pages 257-292, June.
- Zellner, Arnold, 1978. "Estimation of functions of population means and regression coefficients including structural coefficients : A minimum expected loss (MELO) approach," Journal of Econometrics, Elsevier, vol. 8(2), pages 127-158, October.
- Marc Nerlove, 1979.
"The Dynamics of Supply: Retrospect and Prospect,"
394, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Jere R. Behrman, 1966. "Price Elasticity of the Marketed Surplus of a Subsistence Crop," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 48(4_Part_I), pages 875-893.
- Just, Richard E., 1993. "Discovering Production and Supply Relationships: Present Status and Future Opportunities," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 61(01), April.
- Braulke, Michael, 1982. "A Note on the Nerlove Model of Agricultural Supply Response," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 23(1), pages 241-244, February.
- Tomek, William G. & Myers, Robert J., 1993. "Empirical Analysis Of Agricultural Commodity Prices: A Viewpoint," Working Papers 6847, Cornell University, Department of Applied Economics and Management.
- Bewley, Ronald & Fiebig, Denzil G, 1990.
"Why Are Long-run Parameter Estimates So Disparate?,"
The Review of Economics and Statistics,
MIT Press, vol. 72(2), pages 345-349, May.
- Bewley, R. & Fiebig, D.G., 1989. "Why Are Long-Run Parameter Estimates So Disparate?," Papers 89-3, New South Wales - School of Economics.
- Bruce L. Gardner, 1992. "How the Data We Make Can Unmake Us: Annals of Factology," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(5), pages 1066-1075.
- Zellner, Arnold, 1998. "The finite sample properties of simultaneous equations' estimates and estimators Bayesian and non-Bayesian approaches," Journal of Econometrics, Elsevier, vol. 83(1-2), pages 185-212.
- Marc Nerlove & William Addison, 1958. "Statistical Estimation of Long-Run Elasticities of Supply and Demand," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 40(4), pages 861-880.
When requesting a correction, please mention this item's handle: RePEc:wop:pennhp:_055. 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: (Thomas Krichel)
If references are entirely missing, you can add them using this form.