Analytical Framework for Examining Investment in Agriculture

摘要

Within this report, a theoretically consistent analytical framework for examining agricultural investment is developed. Results from duality theory on restricted variable profit functions are incorporated into a longrun dynamic optimization framework where input use is affected by external adjustment costs. The complete system allows the calculation of optimal input use, short-, intermediate-, and longrun input demand elasticities, output, profit, and the timepath of input adjustments to optimal levels.