Agricultural Production by Bruce L. Gardner and Gordon C. Rausser (Eds.)

By Bruce L. Gardner and Gordon C. Rausser (Eds.)

This primary quantity of the ''Handbook of Agricultural Economics'' offers paintings on subject matters significant to the economics of agriculture: the quantitative illustration of expertise; marketplace expectancies; family creation behaviour; customer behaviour with doubtful caliber and defense of products; and problems with imperfect festival in nutrients advertising. quantity 1A treats concerns in agricultural construction, representing the implications of many years of labor deepening and widening the unique concentration of agricultural economics on farm administration. as well as the speculation and estimation of construction and provide behaviour in agriculture, chapters are dedicated to subject matters on which significant developments were made: technological swap; returns to agricultural examine; the economic constitution of agriculture, land associations and markets; and human capital and finance. chapters are additional really good to rural labour and family concerns: migration and the position of ladies in constructing international locations

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472 for animal products). There is a gap between the variables used in the analysis and those assumed in the theoretical model. The paper suggests that there is sufficient variability across regions for a meaningful analysis, but this variability is in part spurious, reflecting quality variations; thus it is likely that the results reflect data problems. Antle (1984) uses a single product translog profit function to estimate input demand and output supply functions for US agriculture for 1910-1978.

Allowing for technical change amounts to making productivity statements based on output and input indexes. It is well known that such measures are subject to the indexnumber bias caused by the inability to make full allowance for the substitution triggered by changes in relative prices. Thus, the method shares the problems as well as the merits of productivity measures through the use of index numbers.

To overcome this problem, the common procedure is to estimate the production function parameters by fitting the factor shares, with or without the constraint of the production function itself. The implicit idea is that the variations observed in the factor shares in the sample can be attributed to differences in input ratios, or said differently, to different locations on the production Ch. 1: Production and Supply 29 function. Judging by the trend in the literature, the estimates of such functions, the most popular being the translog function, were not satisfying, and therefore a rescue was sought in the form of profit or cost functions.

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