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Allocatable Fixed Inputs and Jointness in Agricultural Production: More Implications

Published online by Cambridge University Press:  15 September 2016

Samuel Asunka  and
C. Richard Shumway
Samuel Asunka
Affiliation:
Agricultural economics, Texas A&M University
C. Richard Shumway
Affiliation:
Agricultural economics, Texas A&M University
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Abstract

The presence of allocatable fixed inputs may cause truly joint technologies to appear nonjoint in the short run as well as truly nonjoint technologies to appear joint. This paper demonstrates theoretically why this can happen and then documents that it actually occurs in a significant way in aggregate U.S. agricultural production. A simple testing procedure is used that requires no data on input allocations. The important finding is that failure to reject true (apparent) nonjointness does not justify modeling short-run (long-run) supply independent of alternative output prices.

Type
Articles
Information
Agricultural and Resource Economics Review , Volume 25 , Issue 2 , October 1996 , pp. 143 - 148
Copyright
Copyright © 1996 Northeastern Agricultural and Resource Economics Association 

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