A dynamic adjustment model for U.S. agriculture: 1948–79

A multioutput model is developed within the adjustment cost framework to analyze the structure of dynamic adjustments in U.S. agriculture during the post-war period. An important feature of this model is that the econometric model is consistent with dynamic economic theory. Fluctuations in capital s...

Full description

Saved in:
Bibliographic Details
Published inAgricultural economics Vol. 2; no. 2; pp. 123 - 137
Main Authors Vasavada, Utpal, Ball, V.Eldon
Format Journal Article
LanguageEnglish
Dutch
Published Elsevier B.V 1988
Blackwell
SeriesAgricultural Economics
Subjects
agricultural adjustment
agriculture
computer software
cost analysis
dynamic models
economic theory
input output analysis
matrices
opportunity costs
optimization
production economics
production possibilities
quasifixation
troll (computer software)
United States
Online AccessGet full text

Cover

More Information
Summary:A multioutput model is developed within the adjustment cost framework to analyze the structure of dynamic adjustments in U.S. agriculture during the post-war period. An important feature of this model is that the econometric model is consistent with dynamic economic theory. Fluctuations in capital stocks, variable inputs, and outputs are explained by changing opportunity costs. Empirical results indicated that durable equipment, farm-produced durables, and family labor exhibited significant rigidity in adjustment as a response to exogenous shocks. Surprisingly, the hypothesis that real estate was a variable input could not be rejected. The univariate flexible accelerator hypothesis, which is widely maintained in most agricultural adjustment studies, is inconsistent with the data.
Bibliography:ObjectType-Article-2
SourceType-Scholarly Journals-1
ObjectType-Feature-1
content type line 23
ISSN:0169-5150
1574-0862
DOI:10.1016/0169-5150(88)90012-6