Title

Dynamic input demand functions and resource adjustment for US agriculture: state evidence

Campus Units

Economics

Document Type

Article

Publication Version

Submitted Manuscript

Publication Date

12-1997

Journal or Book Title

Agricultural Economics

Volume

17

Issue

2-3

First Page or Article ID Number

223

Last Page

237

DOI

10.1016/S0169-5150(97)00020-0

Abstract

The paper presents an econometric model of dynamic agricultural input demand functions that include research based technical change and autoregressive disturbances and fits the model to annual data for a set of state aggregates pooled over 1950–1982. The methodological approach is one of developing a theoretical foundation for a dynamic input demand system and accepting state aggreage behavior as approximated by nonlinear adjustment costs and long-term profit maximization. Although other studies have largely ignored autocorrelation in dynamic input demand systems, the results show shorter adjustment lags with autocorrelation than without. Dynamic input demand own-price elasticities for the six input groups are inelastic, and the demand functions possess significant cross-price and research effects.

Comments

This is a staff paper of an article from Agricultural Economics 17 (1997): 223, doi: 10.1016/S0169-5150(97)00020-0.