T.L.Cox, On Non-Parametric Supply Response Analysis

In this paper, we explore the usefulness of nonparametric methods in the investigation of production behavior and the estimation of price elasticities of output supply and input demand functions. The approach can handle the situation where some data points are not consistent with production theory. The method is illustrated by estimating supply-demand elasticities of outputs and inputs in U.S. agriculture. Key words: elasticities, input demand, nonparametric, output supply, technology. Considerable ffort has been devoted to the es-timation of aggregate agricultural supply re-sponse for agricultural products in various countries around the world. Econometric evi-dence on the effects of prices on farm supply is surveyed by Askari and Cummings. More re-cently, econometric research as focused on supply analysis where agriculture is viewed as a multi-input, multi-output industry (e.g.