IDEAS home Printed from https://ideas.repec.org/a/oup/ajagec/v67y1985i2p204-214..html
   My bibliography  Save this article

The Dynamics of Agriculture Supply: A Reconsideration

Author

Listed:
  • Zvi Eckstein

Abstract

This paper presents a dynamic rational expectations equilibrium model for a given crop. The dynamic supply equation is derived from the farmer optimization problem; and the equilibrium movements of commodity price, production, and land allocations are solved analytically. It is shown that the observed dynamics of agriculture supply, which are usually explained and measured with the Nerlovian supply response model, can be explained and measured at least as well by the rational expectations equilibrium model. However, interpretation of the results is different, and the paper defines explicitly the dynamic supply elasticities and presents an econometric method for consistent estimators for the parameters.

Suggested Citation

  • Zvi Eckstein, 1985. "The Dynamics of Agriculture Supply: A Reconsideration," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 67(2), pages 204-214.
    • Handle: RePEc:oup:ajagec:v:67:y:1985:i:2:p:204-214.
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.2307/1240671
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Christophe Gouel, 2012. "Agricultural Price Instability: A Survey Of Competing Explanations And Remedies," Journal of Economic Surveys, Wiley Blackwell, vol. 26(1), pages 129-156, February.
    2. Amina Al Naabi & Shekar Bose, 2020. "Do Regulatory Measures Necessarily Affect Oman’s Seafood Export-Supply?," SAGE Open, , vol. 10(3), pages 21582440209, August.
    3. Matheson, Robert & Clark, J. Stephen, 1990. "Price Stabilization Under Rational Expectations," 1990 Annual meeting, August 5-8, Vancouver, Canada 270922, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. Alfons Oude Lansink & Spiro Stefanou, 2001. "Dynamic Area Allocation and Economies of Scale and Scope," Journal of Agricultural Economics, Wiley Blackwell, vol. 52(3), pages 38-52, September.
    5. Epperson, James E. & Huang, Wan-Tran, 1992. "The Potential For Intraseasonal Market Flow Management Of Southeastern Sweet Potatoes," Journal of Food Distribution Research, Food Distribution Research Society, vol. 23(2), pages 1-8, June.
    6. Taffesse, Alemayehu Seyoum, 1997. "Government policy and dynamic supply response: a study of the compulsory grain delivery system," MPRA Paper 18674, University Library of Munich, Germany.
    7. Epperson, James E. & Huang, Wan-Tran, 1994. "The Potential For Supply Management Of Southeastern Sweet Onions," Journal of Food Distribution Research, Food Distribution Research Society, vol. 25(2), pages 1-7, September.
    8. Hyunseok Kim & GianCarlo Moschini, 2018. "The Dynamics of Supply: U.S. Corn and Soybeans in the Biofuel Era," Land Economics, University of Wisconsin Press, vol. 94(4), pages 593-613.
    9. Roemen, J.H.J., 1991. "The long term elasticity of the milk supply with respect to the milk price in the Netherlands in the period 1969-1984," Other publications TiSEM 2b9606bf-212e-4ddc-bcf0-6, Tilburg University, School of Economics and Management.
    10. Sajjad & Zahoor ul Haq & Javed Iqbal & Muhammad Faisal Shahzad, 2022. "Understanding the Profitability, Supply, and Input Demand of Tobacco Farms in Khyber Pakhtunkhwa, Pakistan," Economies, MDPI, vol. 10(3), pages 1-20, March.
    11. Buhr, Brian L., 1993. "A Quarterly Econometric Simulation Model Of The U.S. Livestock And Meat Sector," Staff Papers 13465, University of Minnesota, Department of Applied Economics.
    12. Clark, J. Stephen & Klein, Kurt K., 1993. "The Relationship Between Price Stabilization And Cycles In The Canadian Wheat Market," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 23(1), pages 1-7, April.
    13. Tsai, Grace Yueh-Hsiang, 1989. "A dynamic model of the U.S. cotton market with rational expectations," ISU General Staff Papers 1989010108000012168, Iowa State University, Department of Economics.
    14. Bachewe, Fantu Nisrane & Taffesse, Alemayehu Seyoum, 2015. "Dynamic supply response of farm households in Ethiopia:," ESSP working papers 78, International Food Policy Research Institute (IFPRI).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:ajagec:v:67:y:1985:i:2:p:204-214.. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Oxford University Press (email available below). General contact details of provider: https://edirc.repec.org/data/aaeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.