Farm-Level Fertilizer Demand in Java: A Meta-Production Function Approach

Mark M. Pitt

American Journal of Agricultural Economics, 1983, vol. 65, issue 3, 502-508

Abstract: This paper models seed variety choice and the demand for variable inputs as jointly determined by profit-maximizing cultivators. The approach parallels that of Hayami and Ruttan, who postulated that changes in the output-fertilizer price ratio induce movements along a meta-fertilizer response function, the envelope of individual variety-specific response surfaces. Ignoring the possibility of seed variety switching leads to underestimates of fertilizer demand elasticities. In addition, estimation with samples reflecting a single seed variety may involve serious selection bias. A two-stage procedure which adjusts for selectivity bias is used to estimate the model with farm-level data from Java.

Date: 1983
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Persistent link: https://EconPapers.repec.org/RePEc:oup:ajagec:v:65:y:1983:i:3:p:502-508.

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