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PMP and Uniqueness of Calibrating Solution: Output Supply and Input Demand Elasticities Small Farms

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  • Paris, Quirino

Abstract

The paper demonstrates the existence of a unique solution of the PMP problem when both quantities and prices are taken as calibrating benchmarks. Furthermore, the paper shows how to obtain a distribution of output supply and input demand elasticities that match available information about them in the form of previously estimated parameters for an entire region or sector. The framework is applied to a sample of small farms.

Suggested Citation

  • Paris, Quirino, 2014. "PMP and Uniqueness of Calibrating Solution: Output Supply and Input Demand Elasticities Small Farms," Working Papers 181606, University of California, Davis, Department of Agricultural and Resource Economics.
    • Handle: RePEc:ags:ucdavw:181606
    DOI: 10.22004/ag.econ.181606
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    References listed on IDEAS

    as
    1. Quirino Paris & Richard E. Howitt, 1998. "An Analysis of Ill-Posed Production Problems Using Maximum Entropy," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(1), pages 124-138.
    2. Richard E. Howitt, 1995. "A Calibration Method For Agricultural Economic Production Models," Journal of Agricultural Economics, Wiley Blackwell, vol. 46(2), pages 147-159, May.
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    Keywords

    Demand and Price Analysis; Institutional and Behavioral Economics; Research Methods/ Statistical Methods;
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