Dynamic Input Demand Functions and Resource Adjustment for U.S. Agriculture: State Evidence
Date
Authors
Major Professor
Advisor
Committee Member
Journal Title
Journal ISSN
Volume Title
Publisher
Authors
Research Projects
Organizational Units
The Department of Economic Science was founded in 1898 to teach economic theory as a truth of industrial life, and was very much concerned with applying economics to business and industry, particularly agriculture. Between 1910 and 1967 it showed the growing influence of other social studies, such as sociology, history, and political science. Today it encompasses the majors of Agricultural Business (preparing for agricultural finance and management), Business Economics, and Economics (for advanced studies in business or economics or for careers in financing, management, insurance, etc).
History
The Department of Economic Science was founded in 1898 under the Division of Industrial Science (later College of Liberal Arts and Sciences); it became co-directed by the Division of Agriculture in 1919. In 1910 it became the Department of Economics and Political Science. In 1913 it became the Department of Applied Economics and Social Science; in 1924 it became the Department of Economics, History, and Sociology; in 1931 it became the Department of Economics and Sociology. In 1967 it became the Department of Economics, and in 2007 it became co-directed by the Colleges of Agriculture and Life Sciences, Liberal Arts and Sciences, and Business.
Dates of Existence
1898–present
Historical Names
- Department of Economic Science (1898–1910)
- Department of Economics and Political Science (1910-1913)
- Department of Applied Economics and Social Science (1913–1924)
- Department of Economics, History and Sociology (1924–1931)
- Department of Economics and Sociology (1931–1967)
Related Units
- College of Agricultural and Life Sciences (parent college)
- College of Liberal Arts and Sciences (parent college)
- College of Business (parent college)
Journal Issue
Is Version Of
Versions
Series
Department
Abstract
Farmers in the developed countries do not hire their workforce or rent machinery and land afresh each day or week because it is more profitable to have longer term arrangements/contracts. Hiring/training and firing/terminating workers, searching/learning to use and refurbishing/returning machinery, and searching/learning to use and returning land to its original condition are all costs over and above a per-unit time rental rate. These costs insure that farmers* demand for most inputs depend not only on current exogenous factors but also on past use and expectations about future use. These are arguments that agricultural input demand functions, at least for the developed countries, are dynamic requiring some time for full adjustment to exogenous economic shocks to occur.
Friesen, Capalbo, and Denny (1992) identify two different approaches to dynamic input demand. First, there are th^ry-based models where dynamics arise from optimal agent behavior. Th^e models have generally taken an adjustment-cost route, e.g., see Lucas 1967a, Nichell 1986, Chambers and Lopez 1984, Vasavada and Chambers 1986, Vasavada and Ball 1988, or resources deterioration with use, e.g., Tegene, Hufliman and Miranowski 1988. Second, data-based dynamic models have been used where dynamics are used to describe the pattern of input use but do not arise from explicitly optimal agent behavior, e.g., see Friesen, Capalbo, and Denny (1992). Both of these approaches have claimed advantages and disadvantages.