A Methodological Aggregation-consistent Individual Level Supply Response Model

S Hosseini, J Spriggs
2009 J. Agric. Sci. Technol   unpublished
Government interventions in agricultural markets in order to stabilize commodity prices and producer incomes have had a long tradition. Intervention has been at both the state and country levels and has been for the most part in the form of commodity-based schemes. This study represents an attempt to develop an appropriate methodology for analyzing the aggregate effects of a particular type of policy rule. This type of policy rule is one for which the unit of observation is the individual farm
more » ... nit rather than the individual unit of commodity. The methodology developed in this paper represents an initial attempt to provide the necessary mi-cro-macro modeling with supply response which is required for analyzing the aggregate effects of whole-farm income support programs. The methodology will be illustrated by an empirical application of the aggregate impacts of the whole-farm program in Saskatchewan, Canada.