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Disaggregated Output Supply and Pesticide Policy
Author(s) -
Lim Hongil,
Shumway C. Richard,
Honeycutt Tommy J.
Publication year - 1993
Publication title -
applied economic perspectives and policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.4
H-Index - 49
eISSN - 2040-5804
pISSN - 2040-5790
DOI - 10.2307/1349445
Subject(s) - economics , variable (mathematics) , agriculture , agricultural economics , livestock , econometrics , residual , ad valorem tax , microeconomics , natural resource economics , public economics , mathematics , tax reform , geography , mathematical analysis , archaeology , algorithm , forestry
Multi‐stage optimization estimates of agricultural output supply and input demand relationships are reported for three major Midwestern agricultural states. The full matrix of own‐ and cross‐price elasticities are computed for 7–10 individual crops, 6–7 livestock products, 5 variable inputs, and residual categories in each state. The impact of an ad valorem tax on pesticides is examined. Output supplies and input demands are estimated to be inelastic in nearly all variables. Although the systems of supply and demand equations for each state are estimated independently of other states, there is considerable similarity across states in a number of the elasticities (but not in pesticide demands).