Crop yield responses to prices: a Bayesian approach to blend experimental and market data. (3rd October 2018)

• Record Type: Journal Article
• Authors: Rosas, Francisco; Lence, Sergio H; Hayes, Dermot J
• Is Part Of: European review of agricultural economics. Volume 46:Number 4(2019)
• Page Start: 551
• Page End: 577
• Publication Date: 2018-10-03
• Subjects: Bayesian econometrics -- duality theory -- yield elasticities; Agriculture -- Economic aspects -- Periodicals; Agriculture -- Economic aspects -- Europe -- Periodicals; 338.109405
• DOI: 10.1093/erae/jby032
• Languages: English
• ISSNs: 0165-1587

Abstract

Abstract: We estimate yield-price elasticities by blending information from market-based datasets with experimental production data using a Bayesian procedure. Yield-price elasticities are dictated by features of the underlying production technology; therefore, data on crop response to relevant inputs provide extra information about parameters of interest. Bayesian econometrics allows for the joint and simultaneous estimation of all model parameters. The procedure is advocated in situations where field trial or experimental data are available to provide additional information helping recovering production technology parameters with higher precision.