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Investment in U.S. Agriculture
Author(s) -
Vasavada Utpal,
Chambers Robert G.
Publication year - 1986
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 - 10.2307/1242141
Subject(s) - investment (military) , univariate , economics , multivariate statistics , agriculture , capital (architecture) , duality (order theory) , aggregate (composite) , microeconomics , asset (computer security) , capital investment , physical capital , econometrics , variable (mathematics) , market economy , finance , computer science , mathematics , human capital , materials science , computer security , discrete mathematics , law , history , ecology , archaeology , composite material , biology , political science , politics , mathematical analysis , machine learning
Resource adjustment problems in U.S. agriculture are motivated against the background of the farm problem. The adjustment cost hypothesis is invoked to specify and estimate consistently a system of dynamic investment demand and output supply equations by utilizing recent advances in dynamic duality theory. The investment demand equations assume the form of a multivariate flexible accelerator. Results indicate that labor, capital services, and land exhibited quasi‐fixity while intermediate materials were a variable factor. This can be construed as a form of asset fixity within aggregate U.S. agriculture. The univariate flexible accelerator hypothesis is rejected.