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Estimating input allocation for farm supply models

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  • Gocht, Alexander
Abstract
When building an economic model for supply analysis the aim is to model a decision making process of one or more agents which fits the observed practice as good as possible. Hereby the modeller is often confronted with incomplete information about the production process; particular crop specific input data are rarely available. The problem of defining activity related technology inputs coefficients is not new. A good deal of literature comes from the mathematical programming perspective, where input coefficients were estimated using a standard linear regression function to fully represent the mathematical program. However this approach is a pure technical device and may result in an inconsistent model. The author of the paper wants to investigate whether it is possible, employing proper estimation techniques, to simultaneously estimate all unknown coefficients of a mathematical farm supply model. This includes the estimation of parameters of the non linear cost function, used to calibrate and catch the simulation behaviour and the crop specific input coefficients. It is shown that a simultaneous estimation of all parameters improves the goodness of fit of the estimated parameters and that such an approach is technically feasible.

Suggested Citation

  • Gocht, Alexander, 2008. "Estimating input allocation for farm supply models," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6469, European Association of Agricultural Economists.
  • Handle: RePEc:ags:eaa107:6469
    DOI: 10.22004/ag.econ.6469
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    References listed on IDEAS

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    Cited by:

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    2. Gocht, Alexander & Britz, Wolfgang, 2010. "Eu-Wide Farm Types Supply In Capri - How To Consistently Disaggregate Sector Models Into Farm Type Model," 50th Annual Conference, Braunschweig, Germany, September 29-October 1, 2010 93960, German Association of Agricultural Economists (GEWISOLA).

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