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Profit-Maximizing Land-Use Revisited: The Testable Implications of Non-joint Crop Production Under Land Constraint

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  • Russell Gorddard

Abstract

This article derives new implications for the land allocation and production decisions of profit-maximizing farm-firms where production of different crops is non-joint but subject to a constraint on the total land area. These implications are observable and thus subject to empirical scrutiny. An estimable model of crop production, land allocation, and input-use decisions is derived that permits joint production and enables the implications of non-joint but land-constrained production to be tested. This may improve econometric estimates of cross-price elasticities of supply by linking models of land use and production decisions, and allowing non-jointness to be imposed where appropriate. Copyright 2013, Oxford University Press.

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  • Russell Gorddard, 2013. "Profit-Maximizing Land-Use Revisited: The Testable Implications of Non-joint Crop Production Under Land Constraint," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 95(5), pages 1109-1121.
    • Handle: RePEc:oup:ajagec:v:95:y:2013:i:5:p:1109-1121
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    File URL: http://hdl.handle.net/10.1093/ajae/aat058
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    Cited by:

    1. Ferreira, Marcelo D P & Feres, Jose, 2018. "The Role of Climate Risk on Land Allocation in Brazilian Amazon," 2018 Annual Meeting, August 5-7, Washington, D.C. 274436, Agricultural and Applied Economics Association.
    2. Ekaterina Vorotnikova & Serhat Asci & James L. Seale, 2018. "Joint production, land allocation, and the effects of the production flexibility program," Empirical Economics, Springer, vol. 55(3), pages 1121-1143, November.

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