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Modeling Dynamic Agricultural Production Response: The Case of Swine Production
Author(s) -
Chavas JeanPaul,
Kliebenstein James,
Crenshaw Thomas D.
Publication year - 1985
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 - 10.2307/1241087
Subject(s) - production (economics) , context (archaeology) , agriculture , livestock , function (biology) , agricultural productivity , crop production , agricultural engineering , computer science , business , economics , microeconomics , ecology , engineering , biology , paleontology , evolutionary biology
Crop and livestock production processes are typically dynamic and involve growing biological assets which are eventually marketed. This study presents a production model of biological growth based on a differential equation specification. Economic implications for optimal input use and optimal replacement policy are discussed in this context. The approach is applied to the growing‐finishing phase of a swine production enterprise. The results demonstrate that the knowledge of the growth function is crucial in evaluating dynamic production decisions.