Premium
The theoretical structure of producer willingness to pay estimates
Author(s) -
Zapata Samuel D.,
Carpio Carlos E.
Publication year - 2014
Publication title -
agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.29
H-Index - 82
eISSN - 1574-0862
pISSN - 0169-5150
DOI - 10.1111/agec.12110
Subject(s) - comparative statics , willingness to pay , economics , function (biology) , statics , microeconomics , econometrics , physics , classical mechanics , evolutionary biology , biology
This article analyzes the theoretical underpinnings of producer willingness to pay (WTP) for new inputs. In addition to conceptualizing the producer WTP function, we derive its comparative statics and show how these properties can be used to estimate quantities demanded or supplied and price elasticities. We also discuss implications of the comparative statics.