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Data confession in the portuguese EDM

2008Working paper Open access
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dc.contributor.authorCosta, Leonardo
dc.date.accessioned2011-09-08T11:27:02Z
dc.date.available2011-09-08T11:27:02Z
dc.date.issued2008
dc.descriptionEste trabalho resulta da apresentação efectuada pelo autor no International Symposium Environment 2010: Situation and Perspectives for the European Union, Porto, Portugal, 6-10 May 2003por
dc.description.abstractA dual profit model is used to characterize the Entre Douro e Minho (EDM) region agriculture. The data comes from budgets for twelve representative farms. Positive Mathematical Programming (PMP is applied. First, shadow prices of fixed inputs are obtained for each farm from a linear program (LP) forcing base year (1994) net output and fixed input allocations. Second, the Maximum Entropy (ME) technique is used to recover the restricted profit functions. The model purely reproduces observed net output and fixed input data. A short run profit function is derived for the region from aggregation of the model. The corresponding long run profit function is also derived. The profit model reveals an inelastic response to prices in the short run, and a more elastic response in the long run. Nitrogen and water appear as complements. The inelasticity of nitrogen response to its own price precludes taxing nitrogen to control its use. In contrast, pricing water is an effective strategy, not only to control water use but also nitrogen use. The Water Framework Directive (WFD) recommends both strategies.por
dc.identifier.citationCOSTA, Leonardo - Data confession in the portuguese EDM. Working paper, n.º 9. 7 p.por
dc.identifier.urihttp://hdl.handle.net/10400.14/5289
dc.language.isoengpor
dc.publisherFaculdade de Economia e Gestão da Universidade Católica Portuguesapor
dc.subjectWaterpor
dc.subjectAgricultural economicspor
dc.subjectElasticitiespor
dc.subjectPositive mathematical programmingpor
dc.subjectMaximum entropypor
dc.titleData confession in the portuguese EDMpor
dc.typeworking paper
dspace.entity.typePublication
rcaap.rightsopenAccesspor
rcaap.typeworkingPaperpor

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