Corner Solutions in Duality Models: A Cross‐Section Analysis of Dairy Production Decisions
针对农场生产决策中常见的角点解问题，提出一种估计策略，并应用于宾夕法尼亚州奶牛场的全面数据。结果表明，忽视角点解会导致显著估计偏差，且农场对价格变化反应灵敏。
Abstract Corner solutions are often observed in cross‐section samples of farm‐level production decisions. An estimation strategy is presented and applied to a uniquely comprehensive data set for Pennsylvania dairy farms. A complete set of choice functions is derived consistent with multiple outputs and multiple inputs, expected profit maximation, and the existence of corner solutions with respect to the labor hiring decision. Results illustrate that substantial estimation bias may occur if the existence of corner solutions is not recognized. Estimated elasticities of choices with respect to input and net output prices indicate substantial responsiveness of choice to price. Results indicate that changes in education and acreage operated result in substantial changes in output and input mixes and that the differences in results for farms, with and without hired labor, are substantial.