A Linear Approximate Acreage Allocation Model
It is shown that the first-order differential acreage allocation model developed by Bettendorf an Bloome and by Barten and Vanloot, and based on certainty equivalent profit maximization, may be extended to a levels version. The levels model, referred to as a linear approximate acreage allocation mod...
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| Format: | Article |
| Language: | English |
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Western Agricultural Economics Association
1999-12-01
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| Series: | Journal of Agricultural and Resource Economics |
| Subjects: | |
| Online Access: | https://ageconsearch.umn.edu/record/30792 |
| _version_ | 1818294113635663872 |
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| author | Matthew T. Holt |
| author_facet | Matthew T. Holt |
| author_sort | Matthew T. Holt |
| collection | DOAJ |
| description | It is shown that the first-order differential acreage allocation model developed by Bettendorf an Bloome and by Barten and Vanloot, and based on certainty equivalent profit maximization, may be extended to a levels version. The levels model, referred to as a linear approximate acreage allocation model, is potentially useful when panel or cross-sectional data are employed. An empirical application with U.S. state-level corn flex acreage data for the period 1991-95 indicates the feasibility of the approach. Estimated price and scale elasticities are generally larger than previous estimates, and are perhaps indicative of acreage response under the provisions of the 1996 Farm Act. |
| first_indexed | 2024-12-13T03:26:35Z |
| format | Article |
| id | doaj.art-956f01a4d1034e8fb7b782bea49528e9 |
| institution | Directory Open Access Journal |
| issn | 1068-5502 2327-8285 |
| language | English |
| last_indexed | 2024-12-13T03:26:35Z |
| publishDate | 1999-12-01 |
| publisher | Western Agricultural Economics Association |
| record_format | Article |
| series | Journal of Agricultural and Resource Economics |
| spelling | doaj.art-956f01a4d1034e8fb7b782bea49528e92022-12-22T00:01:16ZengWestern Agricultural Economics AssociationJournal of Agricultural and Resource Economics1068-55022327-82851999-12-0124238339710.22004/ag.econ.3079230792A Linear Approximate Acreage Allocation ModelMatthew T. HoltIt is shown that the first-order differential acreage allocation model developed by Bettendorf an Bloome and by Barten and Vanloot, and based on certainty equivalent profit maximization, may be extended to a levels version. The levels model, referred to as a linear approximate acreage allocation model, is potentially useful when panel or cross-sectional data are employed. An empirical application with U.S. state-level corn flex acreage data for the period 1991-95 indicates the feasibility of the approach. Estimated price and scale elasticities are generally larger than previous estimates, and are perhaps indicative of acreage response under the provisions of the 1996 Farm Act.https://ageconsearch.umn.edu/record/30792acreage allocation modelcertainty equivalent profit maximizationnormal flex acresscale effects |
| spellingShingle | Matthew T. Holt A Linear Approximate Acreage Allocation Model Journal of Agricultural and Resource Economics acreage allocation model certainty equivalent profit maximization normal flex acres scale effects |
| title | A Linear Approximate Acreage Allocation Model |
| title_full | A Linear Approximate Acreage Allocation Model |
| title_fullStr | A Linear Approximate Acreage Allocation Model |
| title_full_unstemmed | A Linear Approximate Acreage Allocation Model |
| title_short | A Linear Approximate Acreage Allocation Model |
| title_sort | linear approximate acreage allocation model |
| topic | acreage allocation model certainty equivalent profit maximization normal flex acres scale effects |
| url | https://ageconsearch.umn.edu/record/30792 |
| work_keys_str_mv | AT matthewtholt alinearapproximateacreageallocationmodel AT matthewtholt linearapproximateacreageallocationmodel |