An economic investigation into inflation passthrough to the farm sector
1980
Tweeten, L.G.
Extract: The purpose of this study is to estimate the impact of general inflation on prices paid and received by farmers. Specific objectives are: (1) to test the hypothesis that the farm commodity domestic demand function at the farm level is homogeneous of degree zero in prices and income; and (2) conditional on not rejecting the hypothesis in (1), to test the hypothesis that general inflation changes the ratio of prices received to prices paid by farmers because it impacts unevenly on prices and income in the demand function versus the supply function for farm output.
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