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A Cost Function Analysis to Estimate the Effects of Fertilizer Policy on the Supply of Wheat and Corn
Author(s) -
Garcia Roberto J.,
Randall Alan
Publication year - 1994
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 - 10.2307/1349464
Subject(s) - fertilizer , economics , agronomy , function (biology) , agricultural economics , agricultural engineering , biology , engineering , evolutionary biology
Cost functions by crop (U.S. and French wheat and corn, and English wheat) are estimated and marginal costs derived. Fertilizer input demand and output supply elasticities, estimated via marginal cost, are computed capturing the effect of fertilizer‐reducing policies (a tax and a quota). Supply and fertilizer demand effects are compared within and across countries. The results generally support the hypothesis that fertilizer‐reducing policies have a greater effect on crop supplies that use fertilizer more intensively, and that fertilizer policy multilaterally imposed will give U.S. producers a relative competitive advantage vis‐a‐vis French and English producers.