THE DERIVED DEMAND FOR REAL CASH BALANCES IN AGRICULTURAL PRODUCTION

Michael LeBlanc, John F. Yanagida and Roger K. Conway

No 277838, Staff Reports from United States Department of Agriculture, Economic Research Service

Abstract: Implications of real cash balances as a productive input in agricultural production are explored. A system of aggregate input demand functions for agriculture including real cash balances is formulated and estimated, assuming that producers minimize input costs for a given output level. Empirical results suggest real cash balances are an important contributor to agricultural production. Their exclusion from production studies may lead to serious specification biases. Tests herein indicate that the demand for cash balances is relatively elastic with respect to changes in the user cost of money, and that real cash balances are a substitute for machinery and capital.

Keywords: Agricultural and Food Policy; Demand and Price Analysis (search for similar items in EconPapers)
Pages: 16
Date: 1985-12
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/277838/files/ers-report-219.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:uerssr:277838

DOI: 10.22004/ag.econ.277838

Access Statistics for this paper

More papers in Staff Reports from United States Department of Agriculture, Economic Research Service Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().