By Bruce L. Gardner and Gordon C. Rausser (Eds.)
This primary quantity of the ''Handbook of Agricultural Economics'' offers paintings on issues vital to the economics of agriculture: the quantitative illustration of expertise; marketplace expectancies; loved ones creation behaviour; buyer behaviour with doubtful caliber and protection of products; and problems with imperfect pageant in nutrition advertising. quantity 1A treats matters in agricultural creation, representing the results of many years of labor deepening and widening the unique concentration of agricultural economics on farm administration. as well as the idea and estimation of creation and provide behaviour in agriculture, chapters are dedicated to issues on which significant developments were made: technological switch; returns to agricultural study; the economic constitution of agriculture, land associations and markets; and human capital and finance. chapters are extra really good to rural labour and family concerns: migration and the position of girls in constructing nations
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Extra info for Agricultural Production
An application of this approach to the output aggregation of Israeli agriculture using a multi-stage CES function was made by Mundlak and Razin (1971). The limitation of this type of separability is that it is applicable only when the technology is interdependent, and the derived ratio of output prices is independent of the ratio of factor prices [Hall (1973)]. The latter, to be sure, applies also to the aggregate single-product production function. Most agricultural production is thought to be carried out by independent techniques for individual products.
Bouchet, Orden, and Norton (1989) fit a normalized quadratic profit function to data for French agriculture in 1959-1984. This was a period of strong growth, mainly in cereals, a decline in labor, and an increase in labor cost. The analysis differentiates between short- and long-run response. The supply is price responsive, but the elasticities are below 1. "However, the response to price changes are estimated to be inelastic even in the long run when usage of quasi-fixed capital and family labor have fully adjusted to optimal levels" (p.
The idea is that the cost function can be derived from this production function. This is the idea of duality, but things are not that simple. Below we question the validity of the assumption that market prices used in an analysis of macro data are exogenous and maintain the requirements underlying the derivation of a cost function. If the assumption is violated, the estimated coefficients of the cost function would be biased. Given that the integrability conditions are met, the fitted function may be integrated to an aggregate technology, but this is not the relevant one for Canadian agriculture.
Agricultural Production by Bruce L. Gardner and Gordon C. Rausser (Eds.)