The impact of relative factor prices on their usage in Yugoslav agricultural production
1988
Bojnec, S. (Ekonomska fakulteta, Ljubljana (Yugoslavia))
The demand for certain factors of production in agriculture in dependance on relative current and lagged prices in analyzed. The approach suggested by Zvi Griliches in the case of demand for fertilizer is used as methodological basis. The demand functions for resource endowments (labor - number of workers in social sector and number of economically active population in private sector, land under cultivation, livestock and numer of work animals), for technical inputs (machinery and fertilizer) and for education of the labor force in agriculture (an aggregate measure of the schooling of farmers) are estimated. The estimations are made separately for particular factor of agricultural production in social and private sector by means of ordinary least squares. Autocorrelation is eliminated by iterative Cochran-Orcutt Method.
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