Linkages among Estimated Technological Parameters, Production, Supply and Input Demand Elasticities for Agricultural Production Functions

Unbiased estimates of technological parameters of an underlying production function can be obtained by first estimating a cost-share equation. From the parameter estimates of the cost share equation, it is possible to obtain all relevant elasticities, including production elasticities, own and cross input demand elasticities, the elasticity of input demand with respect to product price, and the output supply elasticities. The approach has important implications for, and represents a new way to estimate aggregate supply elasticities.


Issue Date:
2015-03
Publication Type:
Working or Discussion Paper
PURL Identifier:
http://purl.umn.edu/200297
Total Pages:
16
JEL Codes:
Q12; Q11; D24
Note:
The March, 2015 pdf version is recently-edited from a paper written in the late 1980s. A scanned copy of the paper as written in the late 1980s is also available for download. Students who wish to use their math skills to verify each equation and elasticity calculation may wish to download both versions.
Series Statement:
University of KY Staff Papers
489




 Record created 2017-04-01, last modified 2017-05-27

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