Abstract: Estimates of the response of agricultural supply to movements in
expected price display curiously large variation across crops,
regions, and time periods. We argue that this anomoly may be traced,
at least in part, to the statistical properties of the commonly-used
econometric estimator, which has infinite moments of all orders and
may have a bimodal distribution. We propose an alternative minimum-
expected-loss estimator, establish its improved sampling properties,
and argue for its usefulness in the empirical analysis of agricultural
supply response.
Keywords: Agricultural supply response, Bayesian estimation, MELO estimation
Full paper (652 KB PDF)
| Full paper (849 KB Postscript)
Home | Economic research and data | FR working papers | FEDS | 1996 FEDS papers
Accessibility
To comment on this site, please fill out our feedback form.
Last update: July 16, 1997
|