Advertisement

Modelling the Firm-Level Multiproduct Cost Structure of Agricultural Production

  • Abiodun Ojemakinde
  • Mark D. Lange
  • Thomas P. Zacharias
Conference paper
Part of the Lecture Notes in Economics and Mathematical Systems book series (LNE, volume 332)

Abstract

Multiproduct cost analysis has been conducted at state, regional or broader levels of aggregation in agriculture. While the theory of the multiproduct firm and the quantitative tools for analysis are well developed there are no published multiproduct farm firm level studies. This is probably largely attributable to insufficient variability associated with firm level input prices thus preventing dual cost analysis.

Keywords

Cost Function Marginal Cost Input Price Share Equation Input Demand 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. Adelaja, Adesaje, and Anwarul Hogue. “A Multi-Product Analysis of Energy Demand in Agricultural Subsectors.” Southern Journal of Agricultural Economics 18 (1986): 5163.Google Scholar
  2. Akridge, Jay T. and Thomas W. Hertel. “Multiproduct Cost Relationships for Retail Fertilizer Plants.” American Journal of Agricultural Economics, 68 (1986): 928 - 938.CrossRefGoogle Scholar
  3. Ball, V. Eldon, and Robert Chambers. “An Econometric Analysis of Technology in the Meat Products Industry.” American Journal of Agricultural Economics, 64 (1982):699708.Google Scholar
  4. Berndt, E. R. and L. R. Christensen. “The Translog Function and Substitution of Equipment, Structure, and Labor, in U.S. Manufacturing 1929–68.” Journal of Econometrics, 1 (1973): 81 - 113.CrossRefGoogle Scholar
  5. Binswanger, Hans. “A Cost Function Approach to the Measurement of Factor Demand and Elasticities of Substitution.” American Journal of Agricultural Economics 56 (1974): 377 - 86.CrossRefGoogle Scholar
  6. Brown, Randall S., and Lauritis R. Christensen. “Estimating Elasticities of Substitution in a Model of Partial Static Equilibrium: An Application to U.S. Agriculture, 1947 to 1974.” Modelling and Measuring Natural Resource Substitution, ed. Ernst R. Bendt and Barry C. Field. Cambridge: MIT, 1981.Google Scholar
  7. Brown, Randall, Douglas Caves, and L. R. Christensen. “Modelling the Structure and Production for Multiproduct Firm.” Southern Economic Journal, 46 (1979): 256 - 73.CrossRefGoogle Scholar
  8. Christensen, L. R., Dale Jorgensen, and L. J. Lau. “Transcendental Logarithmic Production Frontiers.” Review of Economics and Statistics, 55 (1973): 28 - 55.CrossRefGoogle Scholar
  9. Cowing, Thomas, and Alphons Holtman. “Multiproduct Short-Run Hospital Cost Functions: Empirical Evidence and Policy Implications from Cross-Section Data.” Southern Economic Journal, 49 (1983): 637 - 53.CrossRefGoogle Scholar
  10. Darrough, M. N. and J. M. Heineke. “The Multi-Output Translog Production Cost Function: The Case of Law Enforcement Agencies.” Economic Models of Criminal Behavior, ed. J. M. Heineke. New York: North-Holland, 1978.Google Scholar
  11. Debertin, David L. and Angelos Pagoulatos. “Contemporary Production Theory, Duality, Elasticity of Substitution, the Translog Production Function, and Agricultural Research.” University of Kentucky Agricultural Economics Report 40, June 1985.Google Scholar
  12. Diewert, W. E. “Functional Forms for Profit and Transformation Functions.” Journal of Economic Theory, 6 (1973): 284 - 316.CrossRefGoogle Scholar
  13. Diewert, W. E. “Application of Duality Theory.” Frontiers of Quantitative Economics, Vol. II, edited by M. D. Intriligator and D. A. Kendrick. New York: North-Holland, 1974.Google Scholar
  14. Fielder, Lonnie and Bergen Nelson. “Agricultural Statistics and Prices of Louisiana 1946–1982.” D.A.E. Research Report No. 600, Louisiana Agricultural Experiment Station, 1982.Google Scholar
  15. Fielder, Lonnie and Bergen Nelson, Lonnie and Bergen Nelson. “Agricultural Statistics and Prices for Louisiana 1978–1983.” D.A.E. Research Report No. 631, Louisiana Agricultural Experiment Station, 1984.Google Scholar
  16. Just, Richard E., David Zilberman, and Eithan Hochman. “Estimation of Multicrop Production Functions.” American Journal of Agricultural Economics, 65 (1983): 770 - 780.CrossRefGoogle Scholar
  17. Lau, Lawrence J.. “A Characterization of the Normalized Restricted Profit Function.” Journal of Economic Theory, 12 (1976): 131 - 163.CrossRefGoogle Scholar
  18. Lopez, Ramon. “The Structure of Production and the Derived Demand for Inputs in Canadian Agriculture,” American Journal of Agricultural Economics, 62 (1980): 38 - 45.CrossRefGoogle Scholar
  19. Lopez, Ramon. “Applications of Duality Theory to Agriculture.” Western Journal of Agricultural Economics, 7 (1982): 353 - 365.Google Scholar
  20. McFadden, Daniel. “Constant Elasticity of Substitution Production Functions.” Review of Economic Studies, 30 (1963): 73 - 83.CrossRefGoogle Scholar
  21. Paxton, K. W. and David Lavergne. “Projected Cost and Returns: Rice and Soybeans, Southwest Louisiana, 1984. Department of Agricultural Economics Research Report No. 625, Louisiana State University Agricultural Center, Baton Rouge, Louisiana.Google Scholar
  22. Pope, Rulon. “To Dual or Not to Dual.” Western Journal of Agricultural Economics, 7 (1982): 337 - 51.Google Scholar
  23. Ray, Subhash. “A Translog Cost Function Analysis of U.S. Agriculture, 1939–77.” American Journal of Agricultural Economics, 64 (1982): 490 - 498.CrossRefGoogle Scholar
  24. Saez, Roberto, and C. Richard Shumway. “Multiproduct Agricultural Response and Input Demand Estimation in the United States: A Regional Profit Function Approach.” Departmental Technical Report No. 85–3. Texas Agricultural Experiment Station, 1985.Google Scholar
  25. Shumway, C. Richard. “Supply, Demand and Technology in a Multiproduct Industry: Texas Field Crops.” American Journal of Agricultural Economics, 65 (1983): 748 - 60.CrossRefGoogle Scholar
  26. Shumway, C. Richard. “Supply Relationships in the South - What Have We Learned.” Southern Journal of Agricultural Economics, 18 (1986): 11 - 19.Google Scholar
  27. Stefanou, Spiro E. and Swati Saxena. “Education, Experience, and Allocative Efficiency: A Dual Approach.” American Journal of Agricultural Economics, 70 (1988): 338 - 345.CrossRefGoogle Scholar
  28. Uzawa, H. “Production Functions with Constant Elasticities of Substitution.” Review of Economic Studies, 29 (1962): 291 - 99.CrossRefGoogle Scholar
  29. Zacharias, Thomas and Brian McManus. “Projected Cost and Returns: Rice and Soybeans, Southwest Louisiana, 1985. Department of Agricultural Economics Research Report No. 635, Louisiana State University Agricultural Center, Baton Rouge, Louisiana.Google Scholar
  30. Weaver, Robert. “Multiple Input, Multiple Output Production Choices and Technology in the U.S. Wheat Region.” American Journal of Agricultural Economics, 65 (1983): 4556.CrossRefGoogle Scholar
  31. Zellner, A. “An Efficient Method of Estimating Seemingly Unrelated Regressions and Tests for Aggregation Bias.” Journal of the American Statistical Association, 57 (1962): 585 - 612.CrossRefGoogle Scholar

Copyright information

© Springer-Verlag New York, Inc. 1989

Authors and Affiliations

  • Abiodun Ojemakinde
    • 1
  • Mark D. Lange
    • 1
  • Thomas P. Zacharias
    • 2
  1. 1.Department of Agricultural Economics and AgribusinessLouisiana State UniversityUSA
  2. 2.Department of EconomicsIowa State UniversityUSA

Personalised recommendations