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Testing Asset Fixity for U.S. Agriculture
Author(s) -
Chambers Robert G.,
Vasavada Utpal
Publication year - 1983
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/1240464
Subject(s) - asset (computer security) , investment (military) , agriculture , economics , function (biology) , substitution (logic) , econometrics , microeconomics , computer science , geography , archaeology , computer security , evolutionary biology , politics , political science , law , biology , programming language
Abstract The asset fixity hypothesis is formulated in terms of a putty‐clay technology. Statistical tests for asset fixity based on an estimated cost function are performed. All forms of fixity considered are rejected statistically. Estimated cost function parameters are used to investigate substitution and technical change in U.S. agriculture. Inputs are generally substitutes and technical change is cost reducing. Implications for the investigation of agricultural investment are discussed.