What Can Acreage Allocations Say about Crop Supply Elasticities? A Convex Programming Approach to Supply Response Disaggregation

Cloé Garnache and Pierre R. Mérel

Journal of Agricultural Economics, 2015, vol. 66, issue 1, 236-256

Abstract: type="main" xml:id="jage12074-abs-0001">

This article has two goals. The first is to extend previous results regarding calibration of land-constrained programming models of agricultural supply against supply elasticities to the general case of multiple constraints. The second goal is to demonstrate how the resulting calibration conditions can be used as a source of identification to disaggregate crop supply elasticities down to the level at which static information on acreage allocations is available. We propose an information-based disaggregation algorithm to systematically generate regionalised elasticities from a single prior, and provide an empirical illustration.

Date: 2015
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