Hostname: page-component-78c5997874-ndw9j Total loading time: 0 Render date: 2024-11-05T06:55:43.670Z Has data issue: false hasContentIssue false

Economic weights from profit equations: appraising their accuracy

Published online by Cambridge University Press:  02 September 2010

G. Bright
Affiliation:
School of Agricultural and Forest Sciences, University of Wales, Bangor LL57 2UW
Get access

Abstract

Despite much discussion on the use of simple profit equations to estimate economic weights, no study appears to have tested the accuracy of this method. This paper carries out such a test from the viewpoint of the individual farmer by comparing economic weights calculated in the normal way with results gained from a more empirically acceptable, non-linear equation. Although the study concludes that simple profit equations are likely to be sufficiently accurate in most circumstances, further consideration needs to be given to a series of time periods and the industry and economy at large.

Type
Papers
Copyright
Copyright © British Society of Animal Science 1991

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Brascamp, E. W., Smith, C. and Guy, D. R. 1985. Derivation of economic weights from profit equations. Animal Production 40: 175180.Google Scholar
Bright, G. A. 1988. The effects of breeding and other inputs on Welsh hill sheep farm profitability. Proceedings of fifth Welsh agricultural research and development conference, Cardiff.Google Scholar
Dawson, P. J. 1985. Measuring technical efficiency from production functions: some further estimates. Journal of Agricultural Economics 36: 3140.Google Scholar
Dickerson, G. 1970. Efficiency of animal production—molding the biological components. Journal of Animal Science 30: 849859.Google Scholar
Dillon, J. L. 1977. The analysis of response in crop and livestock production. Pergamon Press, Oxford.Google Scholar
Goddard, M. E. 1983. Selection indices for non-linear profit functions. Theoretical and Applied Genetics 64: 339344.Google Scholar
Hazel, L. M. 1943. The genetic basis for constructing selection indexes. Genetics, Princeton 28:476490.Google Scholar
Jones, G. E. 1963. The diffusion of agricultural innovations. Journal of Agricultural Economics 15:387409.Google Scholar
Lionberger, H. F. 1960. Adoptioon of new ideas and practices. Iowa State University Press, Ames, Iowa.Google Scholar
Melton, B. E., Heady, E. O. and Willham, R. L. 1979. Estimation of economic values for selection indices. Animal Production 28: 279286.Google Scholar
Moav, R. and Moav, J. 1966. Profit in a broiler enterprise as a function of egg production of parent stocks and growth rate of their progeny. British Poultry Science 7:515.Google Scholar
Russell, N. P. and Young, T. 1983. Frontier production functions and the measurement of technical efficiency. Journal of Agricultural Economics 34:139150.Google Scholar
Smith, C. 1978. The effect of inflation and form of investment on the estimated value of genetic improvement in farm livestock. Animal Production 26:101110.Google Scholar
Smith, C. 1984. Rates of genetic change in farm livestock. Research and Development in Agriculture 1: 7985.Google Scholar
Smith, C., James, J. W. and Brascamp, E. W. 1986. On the derivation of economic weights in livestock improvement. Animal Production 43: 545551.Google Scholar
Upton, M. and Dalton, G. E. 1976. Linear production response. Journal of Agricultural Economics 27: 253256.Google Scholar