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The theoretical structure of producer willingness to pay estimates |
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| Authors: | Samuel D Zapata Carlos E Carpio |
| Institution: | 1. School of Agricultural, Forest and Environmental Sciences, McAdams Hall, Clemson University, , Clemson, SC 29634‐0313 USA;2. Department of Agricultural and Applied Economics, Texas Tech University, , Lubbock, TX, 79409‐2132 USA |
| Abstract: | This article analyzes the theoretical underpinnings of producer willingness to pay (WTP) for new inputs. In addition to conceptualizing the producer WTP function, we derive its comparative statics and show how these properties can be used to estimate quantities demanded or supplied and price elasticities. We also discuss implications of the comparative statics. |
| Keywords: | Contingent valuation Comparative statics Adoption of new technologies Profit and cost functions Household production model D13 D21 Q12 Q16 |