Duality theory motivates a translog expected profit function consistent with multiple products, price uncertainty, preseason climate constraints, acreage control policies, and possibly nonhomothetic technology. Although multiple outputs are allowed, enterprise specific data is not necessary. Instead, time-series measures of output revenues and expected prices, input expenses and prices, and fixed input flows are employed. Appropriate measures of elasticities of choice, returns to size, and biases in technological change are derived. Results indicated decreasing returns to size, rather limited, though complementary, responsiveness of choices to price changes, and the nature of biases in technological changes.
All Science Journal Classification (ASJC) codes
- Agricultural and Biological Sciences (miscellaneous)
- Economics and Econometrics