By Bruce L. Gardner and Gordon C. Rausser (Eds.)
This primary quantity of the ''Handbook of Agricultural Economics'' provides paintings on subject matters imperative to the economics of agriculture: the quantitative illustration of expertise; marketplace expectancies; family construction behaviour; customer behaviour with doubtful caliber and safeguard of products; and problems with imperfect festival in meals advertising. quantity 1A treats concerns in agricultural creation, representing the implications of a long time 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 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 additional really good to rural labour and family matters: migration and the position of girls in constructing international locations
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Duality theory became a standard subject in economic analysis in the late 1960s. 26 It was adopted for empirical applications with some great hopes, but as with many innovations, the test of time has been less generous. There were several reasons for such hopes. For competitive firms, prices, unlike quantities, are exogenous and therefore when used as explanatory variables do not cause simultaneous-equations bias that is part of life in the primal estimation. This property is indeed valid but with a limited liability.
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. 292). The estimates of the long-run response are obtained under the implicit assumption of perfectly elastic supply of quasi-fixed inputs. When in reality the supply functions were not perfectly elastic, the estimated responses are biased downward. 42 The standard errors for the aggregated coefficients were obtained under the assumption of independence of the regional estimates and as such are an approximation.
The two studies apply the method to the same data set and obtain plausible results in spite of the complexity in the calculations. The essence of the discussion is that diversity in production is not necessarily a result of interdependence in production. Leathers (1991) extends the discussion to extract Ch. 1: Productionand Supply 43 implications for industrial organization. Dealing with the cost functions and taking the unconstrained cost function as the long-run function, it is implied that in the long run the constraint will not serve as a cause for diversity in production.
Agricultural Production by Bruce L. Gardner and Gordon C. Rausser (Eds.)