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 know-how; marketplace expectancies; loved ones creation behaviour; shopper behaviour with doubtful caliber and protection of products; and problems with imperfect festival in nutrition advertising and marketing. quantity 1A treats matters in agricultural construction, representing the results 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 creation and provide behaviour in agriculture, chapters are dedicated to subject matters on which significant developments were made: technological swap; returns to agricultural learn; the commercial constitution of agriculture, land associations and markets; and human capital and finance. chapters are extra really expert to rural labour and family matters: migration and the function of girls in constructing nations
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1: Production and Supply 45 amining what changes in the components of the netputs should be made in order to induce equality of the profits of the two netputs evaluated in terms of the base prices, or simply to bring the Lq to 1. The procedure is discussed and modified by Chalfant and Zhang (1997). The literature deals with some more specific topics, such as separability of the technology and returns to scale. Finally, the tests discussed above are deterministic in the sense that they classify the data by those observations that are consistent with the hypothesis and those that are not.
However, this approach has not provided any substantive advantage as compared to the use of factor shares, even though they may not be the same as the production elasticities. The reason is that mistakes in specification and interpretation of statistical studies are often greater than the discrepancies between the factor shares and the true production elasticities. An example is the error involved in the finding of increasing returns to scale and its incorporation in the computation of total factor productivity that leads to the elimination of the residual in a comparison of growth over time or productivity differences across countries.
Unless indicated otherwise, the technology is represented by a time trend. The empirical analysis deals Ch. 1: Production and Supply 33 with the estimation of the factor share equation under one of the above restrictions, often not tested empirically. There is no single central issue in these studies: different studies emphasize different topics. The most important ones are related to the behavior of factor shares with respect to changes in factor prices, the trend in the shares (time as an index of technology), and the effect of output when homotheticity is not assumed.
Agricultural Production by Bruce L. Gardner and Gordon C. Rausser (Eds.)