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THE DEMAND FOR INPUTS AND THE AGGREGATE SUPPLY FUNCTION FOR AGRICULTURE *
Author(s) -
Rayner A. J.
Publication year - 1970
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/j.1477-9552.1970.tb02033.x
Subject(s) - aggregate supply , economics , econometrics , supply , lag , aggregate (composite) , price elasticity of supply , aggregate demand , elasticity (physics) , agriculture , demand curve , price elasticity of demand , estimation , supply and demand , derived demand , distribution (mathematics) , microeconomics , function (biology) , macroeconomics , mathematics , computer science , monetary policy , computer network , ecology , mathematical analysis , materials science , management , evolutionary biology , biology , composite material
This paper presents a theoretical derivation of aggregate supply elasticities from the relevant input demand elasticities. By way of illustration, an estimate of the aggregate supply elasticity with respect to product price for United Kingdom agriculture is calculated. In addition, the paper investigates the supply function that is implied by input demand functions which contain a geometrically declining lag distribution. The paper concludes by suggesting that the indirect estimation of aggregate supply elasticities may well be preferable to direct estimation of the elasticities.