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Policy implications of alternative levels of soil detail for economic analysis of agricultural production potential in the Dominican Republic

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Abstract

Resource economists involved in regional analysis of supply and demand relationships are concerned with the cost, reliability, and relevance of alternative levels of data detail. While analyses based on much data detail and model complexity may avoid many of the model specification and data measurement errors found in less detailed, aggregate approaches, they are relatively costly and time-consuming. Unfortunately, error is also incurred when detailed data are aggregated for analytical purposes. In this case study, a linear programming model designed to analyze an area's agricultural production potential is constructed and run at three different levels of soils detail. Policy implications of model solutions at each level of detail and trade-offs between error levels, study costs, and needs of planning officials are discussed. It is concluded that the proper level of detail ultimately depends upon the shape of the users' demand function for information.

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Authors and Affiliations

  1. U.S. Department of Agriculture, Natural Resources Economics Division, Economic Research Service, East Lansing, Michigan, USA

    John D. Sutton (Agricultural Economist)

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  1. John D. Sutton
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The author wishes to acknowledge support of the U.S. Agency for International Development and U.S. Department of Agriculture. Thanks go to Daniel Chappelle, Department of Resource Development, Michigan State University.

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Sutton, J.D. Policy implications of alternative levels of soil detail for economic analysis of agricultural production potential in the Dominican Republic. Ann Reg Sci 17, 57–66 (1983). https://doi.org/10.1007/BF01287472

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  • DOI: https://doi.org/10.1007/BF01287472

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