On the use and misuse of profit functions for measuring the price responsiveness of peasant farmers: A comment
评论了标准利润函数方法在衡量农民价格反应中的问题，如非竞争市场、零值观测等，并提出了通过修改和调整来最小化这些影响的方法。
The standard profit function approach has been applied successfully in a number of LDCs to measure the price responsiveness of peasant farmers. Yet, various problems afflict this approach including, but not restricted to, the existence of non‐competitive market structures, zero‐valued observations, exclusion of relevant variables, lack of participation in output and/or input markets, and endogeneity of input and/or output prices. The impact of these problems on estimation results, however, can be minimised through modifications and adaptations of the standard approach, better specification of the underlying technology, and the use of selected functional forms. Notes Department of Economics, Florida International University. The author is grateful to an anonymous referee for constructive comments on an earlier draft of this note.