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© 1996 Oxford University Press and the Foundation for the European Review of Agricultural Economics

research-article

Estimates of production response in the UK cereal sector using nonparametric methods*

RICHARD TIFFIN1, and ALAN RENWICK2

1University of Durham UK
2University of Cambridge UK

Richard Tiffin Department of Economics, University of Durham, 23/26 Old Alvet, Durham DH1 3HY, UK

Received November 1, 1995;

Summary

This paper reports an alternative approach to the estimation of aggregate production response. The principles of the nonparametric analysis of production data are outlined. The weak axiom of variable profit maximisation is introduced and used to define netput schedules. Data from the National Cereals Survey are used as the basis for the estimation of nonparametric schedules for cereal outputs and variable inputs. The results indicate that the sample is consistent with an assumption of variable profit maximisation and that, under an assumption of input fixity, the response of the main cereals to own-price changes is inelastic.

Keywords: nonparametric analysis, production response, cereals supply


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