A Model of Production with Supply Management for the Canadian Agricultural Sector: Reply
用产出约束的多产品利润函数建模加拿大农业部门的生产结构,以反映供应管理政策。研究发现供应约束会改变供给和投入使用,且非联合生产假设被拒绝。
The production structure of the Canadian agricultural sector is modeled by an output-constrained multiproduct profit function to account for the existence of supply management policies. The le Chatelier effects of supply constraints are illustrated, and the comparative statics of supply management is shown to depend, under input normality, on the type of jointness. Convexity is tested and accepted, and nonjointness is rejected by the estimated normalized quadratic profit function. The results support the hypothesis of nonjointness due to allocatable fixed factors. Decreasing the supply of managed commodities will increase the supply of unrestricted commodities, while total input use is reduced.