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Aggregation and Calibration of Agricultural Sector Models Through Crop Mix Restrictions and Marginal Profit Adjustments AgEcon
Wiborg, Torben; McCarl, Bruce A.; Rasmussen, Svend; Schneider, Uwe A..
All agricultural sector models must deal with aggregation and calibration somehow. The aggregation problem involves treating a group of producers as if they all responded in the same way as a single representative unit. The calibration problem concerns making a model reproduce as closely as possible an empirically observed set of decision maker actions. This paper shows how both calibration and aggregation are addressed through crop mix restrictions combined with marginal profit adjust-ments.
Tipo: Conference Paper or Presentation Palavras-chave: Mathematical programming; Aggregation; Calibration; Crop mix; Marginal cost; Agricultural sector model; Agribusiness; C6; C61; Q1; Q11; Q17; Q18; R12; R13; R14.
Ano: 2005 URL: http://purl.umn.edu/24567
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Criteria for optimal production under uncertainty. The state-contingent approach AgEcon
Rasmussen, Svend.
The state-contingent approach to production economics presented by Chambers and Quiggin provides a new basis for deriving optimality criteria for production under uncertainty. In the present paper criteria are formally derived for risk-averse producers. It is not possible to derive useful criteria for strictly risk-averse producers, but useful criteria for risk-neutral producers are presented for three different types of input. Based on a formal definition of ‘good’ and ‘bad’ states of nature, the use of inputs and levels of production of strictly risk-averse producers are compared to those of risk-neutral producers. Depending on the type of input, risk-averse producers may use more or less input than risk-neutral producers.
Tipo: Journal Article Palavras-chave: Risk and Uncertainty.
Ano: 2003 URL: http://purl.umn.edu/118157
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Driftsokonomiske tab ved pesticidfri dyrkning af landbrugsafgroder - et case-studium AgEcon
Rasmussen, Svend.
Using the Bichel Committee's report as a source, this brief is a summary of farmers' loss of operating profits in relation to the transfer to pesticide free cultivation. The summary involves the case-area of Havelse Kildeplads, an area of drinking water reclamation situated at Frederikssund in the North of Zealand. In connection with the brief, alternative principles of estimating compensation in the case of voluntary reorganisation to pesticide free cultivation are discussed. In this connection the significance of risk and insecurity is also exposed, including the variation in levels of output between farmers. It is calculated that for crop holdings a mean loss of DKK 1,100 - 1,200 per hectare at 2003 price levels will take place. However, the de facto...
Tipo: Working or Discussion Paper Palavras-chave: Crop Production/Industries.
Ano: 2003 URL: http://purl.umn.edu/24202
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Estimating State-Contingent Production Functions AgEcon
Rasmussen, Svend; Karantininis, Kostas.
The paper reviews the empirical problem of estimating state-contingent production functions. The major problem is that states of nature may not be registered and/or that the number of observation per state is low. Monte Carlo simulation is used to generate an artificial, uncertain production environment based on Cobb Douglas production functions with state-contingent parameters. The parameters are subsequently estimated based on different sizes of samples using Generalized Least Squares and Generalized Maximum Entropy and the results are compared. It is concluded that Maximum Entropy may be useful, but that further analysis is needed to evaluate the efficiency of this estimation method compared to traditional methods.
Tipo: Conference Paper or Presentation Palavras-chave: Maximum entropy; State-contingent; Uncertainty; Production; Monte Carlo simulation; Production Economics; C13; C15; D80.
Ano: 2005 URL: http://purl.umn.edu/24529
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Estimating the Technical Optimal Scale of Production in Danish Agriculture AgEcon
Rasmussen, Svend.
This paper uses representative farm account data for 1985-2007 to estimate stochastic production frontiers in the form of input distance functions for Danish crop, dairy and pig farms. The objective is to study and compare scale economies for the three farm types. The estimated technical efficiency is relatively constant over time for all three farm types, but the elasticity of scale differs. Although the size of all farm types has increased considerably during the last 20 years, more than 95 % of the crop farms and 85 % of the dairy and pig farms are still below the estimated technical optimal scale of production. The results support the hypothesis that the restrictions concerning the amalgamation of farms and the purchase of farm land have seriously...
Tipo: Conference Paper or Presentation Palavras-chave: Scale economies; Agriculture; SPF; Input distance function; Technical optimal scale; Elasticity of scale; Farm Management.
Ano: 2011 URL: http://purl.umn.edu/114790
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Numerical Estimation of Agricultural Supply Functions - A Micro Economic Approach based on Mathematical Programming AgEcon
Rasmussen, Svend; Damgaard, Martin.
This paper describes a cost function approach to modelling production and resource use at the level of the individual farm firm. The procedure for deriving the supply function using mathematical programming under fairly general condition of a convex input set is shown, and the model is demonstrated. It is suggested that the model is used as the basic building block in agricultural sector models, the advantage being that the technology is modelled as a production frontier providing better opportunities for modelling input and output substitution.
Tipo: Conference Paper or Presentation Palavras-chave: Cost function; Linear programming; Economies of scale; Agricultural sector models; Production frontier; Farm Management.
Ano: 2008 URL: http://purl.umn.edu/44181
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Optimizing Production under Uncertainty: Generalisation of the State-Contingent Approach and Comparison of Methods for Empirical Application AgEcon
Rasmussen, Svend.
In a recent paper Rasmussen (Rasmussen 2003) derived criteria for optimal production under uncertainty based on the state-contingent approach developed by Chambers and Quiggin (2000). While the criteria in the 2003-paper were derived for the one variable input case, and for different types of input, the present paper generalises the results to the multi-variable input case. It is further shown that with the output-cubical technology as the basic model, any type of input may be analysed as a special case within the general model framework developed. The main part of the paper is devoted to the problems of empirical application of the State-contingent approach. To empirically apply the optimization criteria derived, one needs specific functional forms of...
Tipo: Working or Discussion Paper Palavras-chave: Production Economics; Risk and Uncertainty.
Ano: 2004 URL: http://purl.umn.edu/24184
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Technological Change and Economies of Scale in Danish Agriculture AgEcon
Rasmussen, Svend.
This paper presents the results of an empirical analysis of technological change and economies of scale in Danish agriculture. The estimation is based on a multi-output, multi-input translog cost function and covers the period 1973-1995. The results show that technological change varied considerably. The average rate of technological change was highest on arable farms (4.0% per year) and lowest on dairy farms (1.0% per year), with pig farms in between (2.2% per year). Alt three farm types showed an increasing trend in technological change over time, and technological changes were typically biased. The elasticity of size was considerably above 1 for both small and large arable farms and dairy farms indicating a considerable economic incentive to increase...
Tipo: Working or Discussion Paper Palavras-chave: Research and Development/Tech Change/Emerging Technologies.
Ano: 2000 URL: http://purl.umn.edu/24185
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