The calculation of research benefits with linear and non-linear specification of the demand and supply functions

Jan Piaw, Thomas VOON, Geoff W. EDWARDS

Research output: Journal PublicationsJournal Article (refereed)

11 Citations (Scopus)

Abstract

This paper provides a comparison of research benefits for linear and nonlinear constant elasticity (NLCE) specifications of supply and demand with a pivotal supply shift framework. The comparison allows for a sensitivity test of results to different values for demand and supply elasticity. The main finding is that the values of the gross annual research benefits calculated for the NLCE specification are larger than those calculated for the linear specification with price-elastic supply but are smaller with price-inelastic supply. The analysis suggests that the use of an NLCE specification and a pivotal shift due to research is usually preferable to use of a linear supply curve with pivotal shift.
Original languageEnglish
Pages (from-to)415-420
Number of pages6
JournalAmerican Journal of Agricultural Economics
Volume73
Issue number2
DOIs
Publication statusPublished - 1 May 1991
Externally publishedYes

Fingerprint Dive into the research topics of 'The calculation of research benefits with linear and non-linear specification of the demand and supply functions'. Together they form a unique fingerprint.

  • Cite this