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Functional Form And U.S. Agricultural Production Elasticities

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  • Shumway, C. Richard
  • Lim, Hongil

Abstract

Because so much agricultural policy analysis utilizes estimates of supply and demand elasticities, it is crucial to obtain the most reliable estimates possible. Where reliability cannot be adequately assessed, the sensitivity of elasticities to equally plausible a priori specifications should at least be ascertained. In this article, the sensitivity of U.S. output supply and input demand elasticities to choice of functional form. Considerable sensitivity is found to choice of functional form. Although most frequently used, the translog is generally the outlier and is the least preferred among the alternatives.

Suggested Citation

  • Shumway, C. Richard & Lim, Hongil, 1993. "Functional Form And U.S. Agricultural Production Elasticities," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 18(2), pages 1-11, December.
    • Handle: RePEc:ags:jlaare:30959
    DOI: 10.22004/ag.econ.30959
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    References listed on IDEAS

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    Cited by:

    1. Rulon D. Pope & Jeffrey T. LaFrance & Richard E. Just, 2007. "Imperfect Price Deflation in Production Systems," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(3), pages 738-754.
    2. Shumway, C. Richard & Davis, George C., 2001. "Does consistent aggregation really matter?," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 45(2), pages 1-34.
    3. Jacinto F. Fabiosa & Helen H. Jensen & Dong Yan, 2004. "Output Supply and Input Demand System of Commercial and Backyard Poultry Producers in Indonesia," Food and Agricultural Policy Research Institute (FAPRI) Publications (archive only) 04-wp363, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    4. Ornelas, Fermin S. & Shumway, C. Richard, 1993. "Multidimensional Evaluation Of Flexible Functional Forms For Production Analysis," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 25(2), pages 1-13, December.
    5. repec:zib:zbmahj:v:2:y:2022:i:1:p:34-39 is not listed on IDEAS
    6. Rickard, Bradley J. & Sumner, Daniel A., 2011. "Was there policy "reform"? Evolution of EU domestic support for processed fruits and vegetables," Food Policy, Elsevier, vol. 36(3), pages 438-449, June.
    7. Tzouvelekas, Evaggelos, 2000. "Approximation Properties and Estimation of the Translog Production Function with Panel Data," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 1(1), pages 1-16, January.
    8. Lin, Ni & Shumway, C. Richard, 2000. "Asset Fixity In U.S. Agriculture: Robustness To Functional Form," Ag Econ Series 12967, Washington State University, School of Economic Sciences.
    9. Lambert, David K., 1997. "A Programming Approach To Estimate Production Functions Using Bounds On The True Production Set," Discussion Papers 12956, University of Nevada at Reno, Department of Resource Economics.
    10. Unterschultz, James R. & Jeffrey, Scott R. & Quagrainie, Kwamena K., 2000. "Value-Adding 20 Billion By 2005: Impact At The Alberta Farm Gate," Project Report Series 24049, University of Alberta, Department of Resource Economics and Environmental Sociology.
    11. Liu, Boying & Richard Shumway, C., 2016. "Substitution elasticities between GHG-polluting and nonpolluting inputs in agricultural production: A meta-regression," Energy Economics, Elsevier, vol. 54(C), pages 123-132.
    12. Murova, Olga I. & Coble, Keith H. & Trueblood, Michael A., 2001. "Supply Response Of Ukrainian Agriculture," 2001 Annual meeting, August 5-8, Chicago, IL 20539, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    13. Rickard, Bradley J. & Gonsalves, Jana L., 2008. "How would compliance with dietary recommendations affect revenues for agricultural producers?," Food Policy, Elsevier, vol. 33(5), pages 422-433, October.
    14. Shumway, C. Richard, 1995. "Recent Duality Contributions In Production Economics," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 20(1), pages 1-17, July.

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