The structure of production in Irish agriculture: a multiple-input multiple-output analysis

Abstract

The production structure of Irish agriculture is analysed empirically via a multiple-input multiple-output translog cost function model. As earlier work in this area was restricted to singleoutput, constant-returns-to-scale models, the current study extends this work by investigating empirically non-constant returns to scale and cost complementarity between products in a multiple-output context, as well as providing hypothesis tests for homotheticity, for constant returns to scale, and for quasi-fixity of outputs. The cost model also provides estimates of the annual elasticities of substitution between inputs, the annual own- and cross-price elasticities of factor demand, and the annual rate of Hicks-neutral technical change.