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A system dynamics approach to the structure and economy of fur farming and trading
Author(s) -
Davidsen Pål I.,
Asheim Leif Jarle
Publication year - 1993
Publication title -
system dynamics review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.491
H-Index - 57
eISSN - 1099-1727
pISSN - 0883-7066
DOI - 10.1002/sdr.4260090304
Subject(s) - mink , profitability index , norwegian , production (economics) , economics , agriculture , loan , economy , industrial organization , microeconomics , macroeconomics , finance , ecology , biology , linguistics , philosophy
This article explains the expansion and contraction of Norwegian mink production in an expanding market as a consequence of pelt price and mink fanning costs. The explanation is based upon a Bayesian approach to estimating the farmers' loan fraction, their response to profitability, and a few delays in economic perception and capacity adjustments. This model is the first in a series being developed to portray national and international fur production and markets. In addition to reflecting Norwegian mink production, the model may be considered generic for international fur production.