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Improving on Shadow Price Information for Identifying Critical Farm Machinery
Author(s) -
McCarl Bruce A.,
Kline D. Earl,
Bender Donald A.
Publication year - 1990
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 - 10.2307/1243027
Subject(s) - shadow price , shadow (psychology) , identification (biology) , context (archaeology) , computer science , linear programming , econometrics , sensitivity (control systems) , economics , operations research , mathematical optimization , mathematics , algorithm , engineering , psychology , botany , electronic engineering , psychotherapist , biology , paleontology
A method is presented for identifying critical farm machinery in a linear programming context. The method uses a technical coefficient sensitivity analysis formula that overcomes problems associated with direct use of shadow prices for critical machinery identification. Case studies show the formula identifies the benefits of altering machinery generally with less than 10% error.