A NOTE ON THRESHOLD FACTOR LEVEL(S) AND STONE-GEARY TECHNOLOGY. (21st July 2015)

• Record Type: Journal Article
• Authors: BEATTIE, BRUCE R.; ARADHYULA, SATHEESH
• Is Part Of: Journal of agricultural and applied economics. Volume 47:Number 4(2015)
• Page Start: 482
• Page End: 493
• Publication Date: 2015-07-21
• Subjects: Average variable cost, -- Stone-Geary production function, -- threshold input requirement; D24, -- A22, -- A23; Agriculture -- economics; Agriculture -- Economic aspects -- Periodicals; Agriculture -- Economic aspects -- Southern States -- Periodicals; Agriculture -- Economic aspects -- United States -- Periodicals; Agriculture -- Aspect économique -- Périodiques; Agriculture -- Aspect économique -- États-Unis -- Périodiques; Agrarökonomik; Agrarmarkt; USA; Welt; Agriculture -- Economic aspects; United States; Periodicals; 338.10975
• DOI: 10.1017/aae.2015.17
• Languages: English
• ISSNs: 1074-0708

Abstract

Abstract: This article proposes the parsimonious Stone-Geary utility function from consumer choice theory as a production function model. The viability of the threshold input idea is empirically demonstrated for irrigation water (and in the case of nitrogen, a "gratis" threshold) using two field trials from the famous Hexem-Heady data sets. The implications of the Stone-Geary model for tractable U-shaped average variable cost and for factor demand and product supply are explored.