Campus Units

Economics

Document Type

Article

Publication Version

Published Version

Publication Date

2-1988

Journal or Book Title

American Journal of Agricultural Economics

Volume

70

Issue

1

First Page or Article ID Number

103

Last Page

111

DOI

10.2307/1241980

Abstract

A model of optimal dynamic agricultural supply is derived and fitted assuming farmers have two annual stochastic crop production activities, a joint limitation on production capacity, interdependencies between past acreage utilization and current productivity, and rational expectations. A five-equation specification is fitted to annual data, 1948–80. Estimated parameters are consistent with the theory, and the model simulates well. The long-run price elasticity of corn acreage is 0.2, which is similar to those obtained from ad hoc dynamic models, but our short-run elasticities are different.

Comments

This article is from American Journal of Agricultural Economics 70 (1988): 103, doi: 10.2307/1241980.

Rights

Works produced by employees of the U.S. Government as part of their official duties are not copyrighted within the U.S. The content of this document is not copyrighted.

Language

en

File Format

application/pdf

Working Paper

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