Please use this identifier to cite or link to this item:
http://hdl.handle.net/1942/7976
Title: | Generalized Cross-Entropy Estimation of a Varying-coefficients Model of Cost Allocation in Multi-Product Farming | Authors: | PEETERS, Ludo Surry, Yves |
Issue Date: | 2007 | Source: | Transportation Research Record. p. 1-34 | Abstract: | Standard farm-accounting information is typically restricted to aggregate input expenditures, without revealing the allocation of these expenditures to the various farm enterprises. Given the diversified enterprise base of most farm businesses, a proper assessment of each enterprise's contribution to overall farm performance is severely obscured. This paper presents a new approach for estimating the unobserved input-output or (preferably) cost-allocation coefficients for multi-product farms. Specifically, a model with (non-randomly) varying coefficients is developed, which also allows for a more realistic appraisal of the "real-world" diversity of farm operations. The coefficients of the model are estimated using the Generalized Cross-Entropy (GCE) method. The GCE method proves to be an effective way to obtain unique estimates of farm-specific cost-allocation coefficients and to overcome the many practical problems usually encountered in earlier empirical works. The proposed GCE estimator is applied to a set of 2000-2001 accounting data for a small sample of beef-dairy farms located in Brittany, France. | Keywords: | cost allocation, farm heterogeneity, varying coefficients, generalized cross entropy, aggregate data, small samples | Document URI: | http://hdl.handle.net/1942/7976 | ISSN: | 0361-1981 | e-ISSN: | 2169-4052 | Category: | A1 | Type: | Journal Contribution | Validations: | vabb 2011 |
Appears in Collections: | Research publications |
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File | Description | Size | Format | |
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ERAE paper GME-RCM.pdf | 341.87 kB | Adobe PDF | View/Open |
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