scholarly journals Livestock product supply and factor demand responsiveness

2020 ◽  
Author(s):  
John Kibara Manyeki ◽  
Izabella Szakálné Kanó ◽  
Balázs Kotosz
Keyword(s):  
Wage Rate ◽  
Policy Option ◽  
Profit Function ◽  
Dual Theory ◽  
Demand Elasticities ◽  
Household Data ◽  
Factor Demand ◽  
Input Demand ◽  
Factor Inputs ◽  
Livestock Development

Despite there being incredible challenges in enhancing livestock development in Kenya, this article isolates product supply and factors input demand responsiveness as the main constraints facing the smallholder. A flexible-Translog profit function permits the application of dual theory in the analysis of livestock product supply and factor demand responsiveness using farm-level household data. The results indicate that own-price elasticities were elastic for cattle, while goat and sheep were inelastic. Cross-price and scale elasticities were found to be within inelastic range in all cases, with the goat being a preferred substitute for cattle. All factor inputs demand elasticities were inelastic with the exception of elastic cattle output prices and labour cost. Thus, the recommended policy option would be supportive pro-pastoral price policies, enhanced investment in pastureland improvement and an increasing wage rate, since these assume key significance in improving the livestock production/marketing.

scholarly journals Estimates of Farm Output Supply and Input Demand Elasticities: The Translog Profit Function Approach

1998 ◽  
Vol 37 (4II) ◽  
pp. 1031-1050 ◽  
Author(s):  
Muhammad Ali Chaudhary ◽  
Mushtaq Ahmad Khan ◽  
Kaukab Hassan Naqvi
Keyword(s):  
Income Distribution ◽  
Function Approach ◽  
Profit Function ◽  
Farm Sector ◽  
Demand Elasticities ◽  
Robust Estimates ◽  
Input Demand ◽  
Effective Policy

The importance of estimating valid elasticities of farm output supply and input demand can hardly be overemphasised. Reliable estimates of these elasticities are sine qua non for predicting accurately the farmer responsiveness to changes in inputoutput prices and government taxes and thereby for formulating successful agricultural incentive programmes consistent with national requirements of food, development and exports. In fact, robust estimates of the coefficients of such elasticities can serve as a solid basis in determining effective policy relevant interventions for promoting production, equity, efficiency, and finally egalitarian income distribution in the farm sector ofthe economy.

An econometric analysis of output supply and input demand in the Canadian softwood lumber industry

2000 ◽  
Vol 30 (9) ◽  
pp. 1419-1428 ◽  
Author(s):  
Gregory S Latta ◽  
Darius M Adams
Keyword(s):  
British Columbia ◽  
Price Elasticity ◽  
Labor Demand ◽  
Lumber Industry ◽  
Softwood Lumber ◽  
Demand Elasticities ◽  
The Past ◽  
Forest Policies ◽  
Factor Demand ◽  
Wood Demand

Few studies have examined the own-price elasticity of Canadian softwood lumber supply or output-adjusted factor demand elasticities over the past two decades, despite the utility of these measures in understanding producer response to tariffs, to market shifts (such as the decline in U.S. public harvest), and to changes in domestic forest policies. The present analysis employs a normalized, restricted quadratic profit function approach to estimate lumber supply and Marshallian factor demand elasticities for three Canadian regions. Results indicate that the lumber supply elasticity in the British Columbia coast region may be twice as large as that in the interior or eastern regions. Comparison of Hicksian factor demand elasticities with earlier studies suggests that the own price elasticity of labor demand may be two or more times larger than that for wood. Results also indicate differential time trends in Marshallian lumber output and wood demand elasticities across regions, rising in the British Columbia coast and falling elsewhere over the past two decades. Morishima elasticities of substitution from the present and past studies indicate that the wood for labor factor intensity is more sensitive to changes in labor price than is the labor for wood intensity to changes in wood price.

The theory of value and distribution and the problem of capital

2020 ◽  
Vol 17 (2) ◽  
pp. 241-264
Author(s):  
Heinz D. Kurz
Keyword(s):  
Causal Relationship ◽  
Wage Rate ◽  
Marginal Productivity ◽  
Input Output ◽  
Input Demand ◽  
Empirical Probability ◽  
Competitive Prices ◽  
Theory Of Value ◽  
Compound Interest ◽  
Reliable Basis

The paper identifies as the root of the recent controversy in the theory of capital David Ricardo's finding that competitive prices and costs of production depend not only on the methods of production employed, but also on the wage rate (or rate of profits) and change with it. A consequence of this result, whose systematic elaboration we owe to Piero Sraffa, is that systems of production cannot generally be ordered monotonically with the rate of profits. Reswitching, capital reversing, price and quantity Wicksell effects, etc., are all rooted in this fact. It is argued that the rate of profits is not determined by the marginal productivity of capital and that the equality between the two in equilibrium must not be misinterpreted as implying a causal relationship leading from the latter to the former. Attempts to assess the empirical probability of reswitching, etc., in terms of input–output tables ought to be received with many reservations for both theoretical and data-related reasons. It is further argued that problems for marginalist theory already arise in a zero-profit framework, in which compound interest effects are ruled out. Hence the seemingly unobtrusive ‘laws’ of input demand and output supply are a much less reliable basis to stand on than is conventionally thought. The paper concludes with some remarks on the implications of the findings in the controversy for Keynes's theory of investment.

Sensitivity of Yield and Input Demand Elasticities for Wetland Rice in Java

1993 ◽  
Vol 29 (3) ◽  
pp. 111-126 ◽  
Author(s):  
T. Kesavan ◽  
Frederick Roche ◽  
Ehmbang Adinugroho ◽  
Alirahman
Keyword(s):  
Wetland Rice ◽  
Demand Elasticities ◽  
Input Demand

scholarly journals Input Demand and Output Supply Elasticities of Coarse Cereals in India: A Translog Profit and Sure Approach

2021 ◽  
pp. 196-209
Author(s):  
Radha R. Ashrit
Keyword(s):  
Secondary Data ◽  
Profit Function ◽  
Cross Sectional ◽  
Market Prices ◽  
Demand Functions ◽  
Use Of Resources ◽  
Multi Stage ◽  
Input Demand ◽  
Level Data ◽  
Almost All

Aims: The aim was to estimate the output supply and input demand elasticities of maize, jowar and bajra production, using the restricted normalised translog profit function, for the major producing states of India (Andhra Pradesh, Maharashtra and Rajasthan).  Study Design: A stratified multi-stage random sampling design was adopted for carrying out the sampling. Place and Duration of Study: The study pertains to cross sectional plot level data for the period 2013-14 and 2017-18. The study is based on secondary data, collected from Directorate of Economics & Statistics, Ministry of Agriculture, Government of India.  Methodology: For the present studied crops (maize, jowar and bajra), those states were selected which covered maximum area, i.e, 85% of the total area under the cultivation. Socio-economic data of farmers such as age, sex, level of education, occupation, size of landholding were collected. The translog profit function approach was used as the econometric technique to estimate output supply, and input demand functions. Labour, fertiliser and seeds are taken as variable inputs. Statistical software STATA version 16 was used for the analysis. Results: The results suggest that the changes in market prices of inputs and output significantly affect the farmers’ profits, crop produce supply and the use of resources in the cultivation of these crops. The supply elasticities of maize, jowar and bajra with respect to its own prices are positive and statistically significant indicating that increase in support prices can boost the supply of these nutri-grains and farmers profits. Labour demand for these crops in the country is elastic and significant to its own price. Conclusion: During both the periods, 2013-14 (typical monsoon year) and 2017-18 (drought year), the elasticities derived are statistically robust as almost all of them carried compatible signs and in line with the theory. Promoting these crops can contribute to labour absorption.

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