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What Can Acreage Allocations Say about Crop Supply Elasticities? A Convex Programming Approach to Supply Response Disaggregation
Author(s) -
Garnache Cloé,
Mérel Pierre R.
Publication year - 2015
Publication title -
journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.157
H-Index - 61
eISSN - 1477-9552
pISSN - 0021-857X
DOI - 10.1111/1477-9552.12074
Subject(s) - calibration , identification (biology) , econometrics , economics , regular polygon , supply management , agriculture , computer science , mathematics , statistics , botany , geometry , biology , ecology , power (physics) , physics , quantum mechanics
This article has two goals. The first is to extend previous results regarding calibration of land‐constrained programming models of agricultural supply against supply elasticities to the general case of multiple constraints. The second goal is to demonstrate how the resulting calibration conditions can be used as a source of identification to disaggregate crop supply elasticities down to the level at which static information on acreage allocations is available. We propose an information‐based disaggregation algorithm to systematically generate regionalised elasticities from a single prior, and provide an empirical illustration.