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Derivation of Long‐run Factor Demands from Short‐run Responses

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  • Hervé Guyomard
  • Dominique Vermersch

Abstract

The concept of the restricted cost function provides a dual approach to the analysis of short‐run technology. It allows also, under curvature restrictions, inference of the different possible equilibria, according to constraints on the firms. Moreover, in this paper, the properties of the restricted cost function are spelled out. Substitution possibilities related to the different regimes are also derived from the restricted cost function. This theoretical framework is applied to characterize the French cereal‐producing sector by using a cross‐section of farms.

Suggested Citation

  • Hervé Guyomard & Dominique Vermersch, 1989. "Derivation of Long‐run Factor Demands from Short‐run Responses," Agricultural Economics, International Association of Agricultural Economists, vol. 3(3), pages 213-230, October.
    • Handle: RePEc:bla:agecon:v:3:y:1989:i:3:p:213-230
    DOI: 10.1111/j.1574-0862.1989.tb00085.x
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    Cited by:

    1. Jaghdani, Tinoush Jamali & Brümmer, Bernhard, 2011. "Demand for Irrigation Water for Pistachio Production from Depleting Groundwater Resources: Spatial Econometric Approach," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114457, European Association of Agricultural Economists.
    2. Dominique Vermersch & Francois Bonnieux & Pierre Rainelli & . European Association of Environmental And Resource Economists, 1991. "Can we expect abatement of agricultural pollution using economic incentives : the case of intensive livestock farming in France," Post-Print hal-02311396, HAL.

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