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Estimating a Primal Model of Regional Crop Supply in the European Union
Author(s) -
Jansson Torbjörn,
Heckelei Thomas
Publication year - 2011
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.1477-9552.2010.00270.x
Subject(s) - econometrics , estimator , bayesian probability , range (aeronautics) , crop , production (economics) , product (mathematics) , economics , crop production , agricultural economics , statistics , mathematics , agriculture , geography , microeconomics , forestry , materials science , geometry , archaeology , composite material
Abstract This article estimates behavioural parameters of the quadratic regional supply models in the modelling system CAPRI. Using the time‐series data in the CAPRI database, we directly estimate the optimality conditions using a Bayesian highest posterior density estimator. After discarding regions with insufficient data, parameters for up to 23 crop production activities with related inputs, outputs, prices and behavioural functions are estimated for 219 regions in EU‐27. The results are systematically compared with the outcomes of other studies. For crop aggregates (e.g. cereals, oilseeds, etc.) at the national level, the estimated own price elasticities of supply are found to be in a plausible range. On a regional level and for individual crops, the picture is much more diverse. As far as we know, there is no other study of similar regional and product coverage.