Abstract
Increasing costs of farm inputs in the last decade have caused much concern among the farm population and agricultural policy makers. In this study a dynamic simulation program of farm sector production and investment behavior was developed to analyze the impacts of continuing input price increases on farmers' production and investment decision and on the retail cost of food products. The simulation model was built around a simultaneous system of portfolio balancing equations which included supply and demand equations for productive farm inputs, as well as other physical and financial assets and debt. Farm-level production was determined recursively from the input levels solved for in the simultaneous portfolio balancing component of the model through the use of a Cobb-Douglas aggregate production function. A variety of ancillary equations were included in the model to calculate the commonly used sector financial statements and to recursively update the values of lagged variables through time. ...
Eleveld, Bartelt (1979). The impact of increasing input prices on the U.S. farm sector : a dynamic simulation approach. Texas A&M University. Texas A&M University. Libraries. Available electronically from
https : / /hdl .handle .net /1969 .1 /DISSERTATIONS -730982.