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Dynamic Input Decisions in Econometric Production Models

Author

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  • John M. Antle
  • Stephen A. Hatchett

Abstract

This study develops an econometric methodology for estimating dynamic production models with sequential intermediate input decisions. Two problems arise in the study of intermediate inputs: intermediate input decisions may be endogenous to final output, and intermediate inputs are likely to be correlated with each other and other variables, making identification and estimation difficult. The econometric model measures the productivity of intermediate inputs, taking into account the farmer's sequential input decisions and input productivity differences during the growing season. A multistage Cobb-Douglas model of wheat response to irrigation water is used to illustrate the proposed methods.

Suggested Citation

  • John M. Antle & Stephen A. Hatchett, 1986. "Dynamic Input Decisions in Econometric Production Models," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 68(4), pages 939-949.
    • Handle: RePEc:oup:ajagec:v:68:y:1986:i:4:p:939-949.
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    File URL: http://hdl.handle.net/10.2307/1242140
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    Cited by:

    1. Kingwell, Ross S., 1992. "The Tactics of Dryland Farm Management given Variance in Climate and Prices," 1992 Conference (36th), February 10-13, 1992, Canberra, Australia 146536, Australian Agricultural and Resource Economics Society.
    2. Alexandre Gohin & Herve Guyomard & Fabrice Levert & . Ministère de L'Aménagement Du Territoire Et de L'Environnement, Direction Générale de L'Administration Et Du Développement, Paris (fra) & Francois, 2000. "Economic impacts of reducing agricultural use of mineral fertilizer in France : a general equilibrium analysis [Impacts économiques d'une réduction des utilisations agricoles des engrais minéraux e," Post-Print hal-02840460, HAL.
    3. Letort, Elodie & Carpentier, Alain, 2009. "Endogeneity of acreage choices in input allocation equations: implied problems and a solution," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49217, Agricultural and Applied Economics Association.
    4. B. A. Larson & H. Vroomen, 1991. "Nitrogen, Phosphorus And Land Demands At The Us Regional Level: A Primal Approach," Journal of Agricultural Economics, Wiley Blackwell, vol. 42(3), pages 354-364, September.
    5. Gollehon, Noel R. & Moore, Michael R. & Negri, Donald H., 1990. "Production Functions Of Western Irrigated Crops," 1990 Annual meeting, August 5-8, Vancouver, Canada 270992, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Just, Richard E. & Just, David R., 2011. "Global identification of risk preferences with revealed preference data," Journal of Econometrics, Elsevier, vol. 162(1), pages 6-17, May.
    7. repec:ags:aaea22:335978 is not listed on IDEAS
    8. Aradhyula, Satheesh Venkata, 1989. "Policy structure, output supply and input demand for US crops," ISU General Staff Papers 198901010800009909, Iowa State University, Department of Economics.

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