Multi-Output Broadacre Agricultural Production: Estimating A Cost Function Using Quasi-Micro Farm Level Data From Australia

Existing econometric models for Australian broadacre agricultural production are few and have become dated. This paper estimates a multi-product restricted cost function using a unique quasi-micro farm level dataset from the Australian Agricultural and Grazing Industries Survey. Both the transcendental logarithmic and normalized quadratic functional forms are employed. Heteroskedasticity caused by the particular nature of the quasi-micro data is also assessed and accommodated. Allen partial elasticities of input substitution and own-and cross-price input demand elasticities are computed. The estimated demands for most production factors are inelastic to prices. Hired labour is responsive to own price and cropping input prices.


Issue Date:
2008
Publication Type:
Conference Paper/ Presentation
PURL Identifier:
http://purl.umn.edu/6009
Total Pages:
41
Series Statement:
Conference Paper




 Record created 2017-04-01, last modified 2017-04-26

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