By Bruce L. Gardner and Gordon C. Rausser (Eds.)
This primary quantity of the ''Handbook of Agricultural Economics'' offers paintings on subject matters principal to the economics of agriculture: the quantitative illustration of know-how; industry expectancies; loved ones construction behaviour; patron behaviour with doubtful caliber and safeguard of products; and problems with imperfect festival in nutrition advertising and marketing. quantity 1A treats concerns 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 construction and provide behaviour in agriculture, chapters are dedicated to themes on which significant developments were made: technological switch; returns to agricultural examine; the commercial constitution of agriculture, land associations and markets; and human capital and finance. chapters are additional really expert to rural labour and loved ones matters: migration and the position of ladies in constructing nations
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Additional info for Agricultural Production
Unfortunately, such a numerical comparison of the dual and the primal estimates had no follow-up and has practically vanished from empirical analysis. 1. Studies based on cost functions Define the restricted cost function C(w, k, y, t) = m~n[wv; y = F(v, k, t)], (17) where v is a vector of unrestricted (variable) inputs with prices denoted by w, k is a vector of constrained inputs which are assumed to have no alternative cost, y is a vector of outputs, and t is a technology index. By the envelope theorem (Shephard's Lemma) OlnC(w, k, y, t) =-Sj(w,k,y,t).
What is the message? 35 Factor shares in agriculture have undergone changes over time; particularly, the share of labor declined, that of machinery and purchased inputs increased. How much of these changes can be attributed to economic factors? The studies reviewed above indicate that some of these changes were associated with changes in factor prices. Still, the major part of the changes is attributed to changes in output or reflects the time trend. There is a tradeoff between the role of homotheticity and neutrality of the technical change.
The positive one is technical change, so that when yJ was chosen, yi was not feasible. As technology progresses with time, we expect more recent observations to represent more productive technologies than did earlier observations. Consequently, in time series analysis, when t > 0, we expect pOyt _ pOyO > 0, or equivalently, Lq = pOf/pOyO > 1 where Lq is the Laspeyres quantity index. If this is not the case, then the conclusion is that this binary comparison is inconsistent with profit maximization.