Growth determinants,intra-distribution mobility,and convergence of state-level agricultural productivity in the USA

Stochastic kernels and state-level data are used in this paper to investigate mobility and convergence of the agricultural Total Factor Productivity (TFP) in the U.S.A. and to determine the influence of certain growth-related factors on the shape of the equilibrium TFP distribution. According to the empirical results, increasing returns to scale, materials intensity, and regional differences are likely to increase the dispersion of the cross-section TFP distribution, while higher rates of catchingup work towards reducing it. (JEL: Q16, O30, C14)     

Quadratic Differential Demand Systems and the Retail Demand for Pork in Great Britain

The primary objective of this paper is to derive a general synthetic quadratic (rank 3) differential demand system which nests within it a range of testable differential demand models including the quadratic AIDS, CBS, Rotterdam and NBR systems. A model selection test procedure is also outlined. These differential systems are then applied and tested to analyse the monthly retail demand for cuts of pork in Great Britain over the period 1989–2000. The empirical results suggest that a quadratic differential AIDS model is most appropriate for the pork demand system studied, but that the need for inclusion of quadratic income/expenditure terms is not universal for every cut within the demand system. Quadratic expenditure effects were appropriate for pork chops and leg roasts, but log linear expenditure effects were adequate for bellies, shoulders and loin roasts. Roasting cuts were expenditure and own price elastic, with pork loins, chops and bellies all expenditure and own price inelastic.     

Capacity utilization under dynamic profit maximization

Empirically implementable measures of optimal capacity utilization are developed from the dynamic profit maximization perspective. The primal measure is based on behavior of the firm's supply along an optimal path to the steady state. The dual measure is based on the behavior of the dynamic value function in the stock of the quasi-fixed input. Rates of optimal capacity utilization are estimated for the U.S. food processing and distribution sector over the period 1948–1991.