A restricted cost function is estimated using annual data for western Canadian agriculture over the period 1961-84. Using the parameter estimates, disequilibrium cost elasticities are calculated. The elasticities for the sector indicate that the ex ante market prices of quasi-fixed inputs were higher than their shadow values. That is, quasi-fixed factors were underutilized during the sample period. Excess agricultural land contributed most to the cost of disequilibrium.
|Original language||English (US)|
|Number of pages||13|
|Journal||Canadian Journal of Agricultural Economics|
|State||Published - Nov 1996|