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Resource allocation in U.S. agriculture: application of an improved polynomial lag estimation procedure



Resource allocation in U.S. agriculture: application of an improved polynomial lag estimation procedure



Departmental Technical Report, Department of Agricultural Economics, Texas AandM University (DTR 77-6): 34



The pioneering research by Tyner and Tweeten, reported in two articles in the "Journal of Farm Economics" in the middle sixties, was and remains imaginative and comprehensive. the objectives of our study were: (1) to assess the validity of the Tyner Tweeten framework with regard to their postulated geometric distributed lag factor share adjustment process and (2) to test the significance of postulated differences in decade equilibrium factor shares. in pursuing these objectives we discovered an important error in their analysis, viz., inappropriate product and factor prices were used in estimating the extent of nonoptimality in input usage in U. s. agriculture. efforts were made to correct that error in this study prior to examining the effects of an alternative form of the lag distribution.

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