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The Adjustment of Product and Factor Markets: An Application to the Pacific Northwest Forest Products Industry
Author(s) -
Merrifield David E.,
Haynes Richard W.
Publication year - 1984
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 - 10.2307/1240618
Subject(s) - factor price , economics , production (economics) , product (mathematics) , factor (programming language) , supply and demand , factor market , sample (material) , econometrics , microeconomics , mathematics , computer science , chemistry , geometry , chromatography , programming language
An equilibrium model of output and factor markets is used to calculate comparative static effects of demand and factor supply shifts on output and factor prices and employment in the Pacific Northwest forest products industry. The technological link between output and factor levels is provided through a three‐input production function. Results over the 1950–76 sample period suggest that changes in product‐to‐factor price ratios and factor employment are a consequence of differing factor supply elasticities and that factor supply shifts have limited effect on output price and employment levels because of substitution possibilities occurring in the production process and marketplace.