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Estimating an Ex Ante Cost Function for Belgian Arable Crop Farms AgEcon
Hansen, Kristiana; Baudry, Alexandre; De Blander, Rembert; Frahan, Bruno Henry de; Polome, Philippe.
We estimate a farm-level cost function for Belgian crop farms using FADN data over the study period 1996-2006. We rely on an estimation of farmers' expected yields at the time cropping decisions are made rather than actual yields observed in the FADN data. The use of an ex ante cost function improves the cost function estimation. We subsequently suggest how our cost function can be used in simulations to analyze farmer response to changes in output price risk.
Tipo: Conference Paper or Presentation Palavras-chave: Cost function estimation; Panel data; Risk; Agricultural and Food Policy; Crop Production/Industries; Production Economics; Q12; Q18.
Ano: 2009 URL: http://purl.umn.edu/49477
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Dairy Farms without Quotas: Simulations Based on a Multi-output Multi-input Cost Function AgEcon
Baudry, Alexandre; Frahan, Bruno Henry de; Polome, Philippe; Howitt, Richard E..
This paper evaluates the farm level supply and income effects from removing milk quotas and reducing producer prices with increasing direct compensatory payments. Using a panel of Belgian dairy farms, we first estimate long-run flexible multioutput multi-input marginal cost curves for each farm of the sample. Second, we embed each estimated long-run farm cost function in the objective function of a profit maximisation programming model built for each farm of the sample. Simulations show that, without quotas, aggregated milk supply and farm gross margin increase by 18 per cent and 37 per cent respectively from their reference level. A 20 per cent decline in producer prices and a compensation rate set at 30 per cent of the price decline maintain the...
Tipo: Conference Paper or Presentation Palavras-chave: Flexible cost function; Microsimulation; Dairy reform; Livestock Production/Industries.
Ano: 2008 URL: http://purl.umn.edu/43965
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Multi-input Multi-output Farm-level Cost Function: A Comparison of Least Squares and Entropy Estimators AgEcon
Polome, Philippe; Fernagut, Bruno; Harmignie, Olivier; Frahan, Bruno Henry de.
We introduce a modification of the quadratic-Leontieff multi-output cost function that is particularly suitable for the data of the Farm Accountancy Data Network. We present least squares and entropy estimates of that function and compare their results for a sample of crop farms. Our results are encouraging for the use of entropy estimators in cases in which farms are not assumed to share the same technology. Our approach can be seen as an extension of the Positive Mathematical Programming approach (Howitt, 1995). The extension consists in an explicit specification of inputs in the cost function and in the possibility of modeling several farms simultaneously.
Tipo: Working or Discussion Paper Palavras-chave: Cost function; Least squares estimator; Entropy estimator; Heterogeneity; Farm Management; C3; D61; Q12.
Ano: 2005 URL: http://purl.umn.edu/24727
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Farm-level Acreage Allocation under Risk AgEcon
Polome, Philippe; Harmignie, Olivier; Frahan, Bruno Henry de.
We model the area allocation decision problem for a fixed size crop farm under random yields and prices for a risk-averse farmer. We assume that in the short run, the variable input expenses are fixed per hectare and per crop (an assumption that is motivated by our data). Therefore the cost function depends only on the non-stochastic area allocation. The first order conditions of the model involve integrals across functions of random variables that do not in general have closed form solutions. Numerical simulation techniques are used to calibrate the parameters of the cost function. The two sources of randomness, price and yield, are combined into a single random variable, the yield-in-value. Based on examination of panels of yield-in-value data, we assume...
Tipo: Conference Paper or Presentation Palavras-chave: Risk and Uncertainty.
Ano: 2006 URL: http://purl.umn.edu/21306
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Especificaciones y consideraciones muestrales en la estimacion de la demanda de un espacio natural singular: las Illa Cies en Galicia AgEcon
Gomez, Manuel Gonzalez; Polome, Philippe; Blanco, Albino Prada.
RESUMEN: En este trabajo se presentan estimaciones de diferentes especificaciones de demanda para un espacio recreativo singular a partir de la información de entrevis-tas a visitantes y no visitantes. Tenemos en cuenta los problemas de forma funcional, de medición del coste y demanda, de elección de una técnica de muestreo y de trata-miento de la muestra. La consideración de estas alternativas permite elegir una especi-ficación en mejores condiciones y nos aleja de supuestos iniciales restrictivos. Los resultados en términos de predicción de la demanda y estimación del excedente son bastante divergentes, resaltando la importancia de comparar diferentes especificacio-nes que incluyan el espectro de opciones potenciales. SUMMARY: In this paper, we present...
Tipo: Journal Article Palavras-chave: Resource /Energy Economics and Policy; C3; Q26.
Ano: 2001 URL: http://purl.umn.edu/28737
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