Multicrop Production Decisions in Western Irrigated Agriculture: The Role of Water Price

Michael R. Moore, Noel R. Gollehon and Marc B. Carey

American Journal of Agricultural Economics, 1994, vol. 76, issue 4, 859-874

Abstract: Applying a model of the multioutput firm, econometric results are reported for irrigated production in four multistate regions of the American West. Cross-sectional microdata from the Farm and Ranch Irrigation Survey and limited-dependent variable methods are used to estimate crop-choice, supply, land allocation, and water demand functions for field crops. Farm-level water demand is decomposed into the sum of crop-level water demands, and crop-level demands are further separated into an extensive margin (land allocations) and intensive margin (short-run water use). Response to water price (measured as groundwater pumping cost) occurs primarily at the extensive margin.

Date: 1994
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Persistent link: https://EconPapers.repec.org/RePEc:oup:ajagec:v:76:y:1994:i:4:p:859-874.

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