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A Test of Asset Fixity in Southeastern U.S. Agriculture

Published online by Cambridge University Press:  09 September 2016

Timothy G. Taylor  and
Nicholas Kalaitzandonakes
Timothy G. Taylor
Affiliation:
Food and Resource Department, University of Florida, Gainesville, FL
Nicholas Kalaitzandonakes
Affiliation:
Food and Resource Department, University of Florida, Gainesville, FL
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Abstract

A test for static equilibrium developed by Schankerman and Nadiri is used to evaluate the hypothesis that land and capital in aggregate south-eastern U.S. agriculture behave as fixed inputs. Empirical results reject the hypothesis that these two inputs are at their long-run equilibrium levels implied by observed prices. Thus, some degree of asset fixity may be concluded.

Keywords

asset fixityspecification testsstatic duality
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 22 , Issue 1 , July 1990 , pp. 105 - 112
Copyright
Copyright © Southern Agricultural Economics Association 1990

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