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The paper presents an econometric model of dynamic agricultural input demand functions that include research based technical changeand autoregressive disturbances and fits the model to annual data for a set of state aggregates pooled over 1950-1982. The methodologicalapproach is one of developing a theoretical foundation for a dynamic input demand system and accepting state aggreage behavior asapproximated by nonlinear adjustment costs and long-term profit maximization. Although other studies have largely ignored autocorrelationin dynamic input demand systems, the results show shorter adjustment lags with autocorrelation than without. Dynamic input demandown-price elasticities for the six input groups are inelastic, and the demand functions possess significant cross-price and research effects.

Subject(s): Demand and Price Analysis

Production Economics

Issue Date: 1997-12

Publication Type: Journal Article

PURL Identifier: http://purl.umn.edu/174316 Published in: Agricultural Economics: The Journal of the International Association of Agricultural Economists, Volume 17, Issue 2-3 Page range: 223-237

Total Pages: 16

Record appears in: International Association of Agricultural Economists (IAAE) > Agricultural Economics: The Journal of the International Association of Agricultural Economists





Author: Warjiyo, Perry ; Huffman, Wallace E.

Source: http://ageconsearch.umn.edu/record/174316?ln=en







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