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Input Allocation in Multicrop Systems
Author(s) -
Just Richard E.,
Zilberman David,
Hochman Eithan,
BarShira Ziv
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 - 10.2307/1243159
Subject(s) - rule of thumb , variable (mathematics) , profit maximization , maximization , production (economics) , profit (economics) , econometrics , economics , computer science , aggregate (composite) , utility maximization , microeconomics , operations research , mathematics , mathematical economics , mathematical analysis , materials science , algorithm , composite material
Abstract Using data only on aggregate variable input use and land allocation, this paper suggests a methodology for allocating variable input use among crops and improvement of regional crop budget information. Two approaches for estimation of variable input allocations among production activities are examined. One relies on behavioral rules whereby input allocations follow accepted rules of thumb. The alternative approach is derived from profit maximization where input use responds instantaneously to changes in input and output prices. The behavioral rules dominate instantaneous response to prices in explaining the data analyzed in this paper and suggest the validity of a simple behavioral approach for developing enterprise budgets and cost of production estimates.