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Estimates of Production Response in the UK Cereal Sector Using Nonparametric Methods

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  • Tiffin, Richard
  • Renwick, Alan

Abstract

This paper reports an alternative approach to the estimation of aggregate production response. The principles of the nonparametric analysis of production data are outlined. The weak axiom of variable profit maximisation is introduced and used to define netput schedules. Data from the national Cereals Survey are used as the basis for the estimation of nonparametric schedules for cereal outputs and variable inputs. The results indicate that the sample is consistent with an assumption of variable profit maximisation and that, under an assumption of input fixity, the response of the main cereals to own-price changes is inelastic. Copyright 1996 by Oxford University Press.

Suggested Citation

  • Tiffin, Richard & Renwick, Alan, 1996. "Estimates of Production Response in the UK Cereal Sector Using Nonparametric Methods," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 23(2), pages 179-194.
    • Handle: RePEc:oup:erevae:v:23:y:1996:i:2:p:179-94
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    Cited by:

    1. Goodhue, Rachael E. & Rausser, Gordon C. & Simon, Leo K., 2000. "Processor placements and producer incentives: analyzing broiler chicken production contracts," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt2tc2g983, Department of Agricultural & Resource Economics, UC Berkeley.
    2. Falconer, K. & Hodge, I., 2000. "Using economic incentives for pesticide usage reductions: responsiveness to input taxation and agricultural systems," Agricultural Systems, Elsevier, vol. 63(3), pages 175-194, March.
    3. Cechura, L. & Hockmann, H. & Malý, M. & Žáková Kroupová, Z., 2015. "Comparison of Technology and Technical Efficiency in Cereal Production among EU Countries," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 7(2), pages 1-11, June.
    4. Stefanides, Zdenko & Tauer, Loren W., 1997. "Estimating Individual Farm Supply And Demand Elasticities Using Nonparametric Production Analysis," Working Papers 14743, Cornell University, Department of Applied Economics and Management.
    5. Goodhue, Rachael E. & Rausser, Gordon C. & Simon, Leo K., 1998. "Understanding Production Contracts: Testing An Agency Theory Model," 1998 Annual meeting, August 2-5, Salt Lake City, UT 20946, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Cechura, Lukas & Hockmann, Heinrich & Malý, Michal & Žáková Kroupová, Zdenka, 2015. "Comparison of technology and technical efficiency in cereal production among EU countries," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 7(2), pages 27-37.

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