A Supply Response Model for Perennial Crops

Abstract

Abstract The production of perennial crops involves planting, removal, yield, and time dimensions not similarly encountered in annual crops. A model is developed to provide a structural base for estimating response relationships that encompass these dimensions. The model rests on assumptions of rational producer behavior which takes account of possible actions of other producers and of the aggregate effect of these actions on total production and profits. Because important data series often are not available, modifications of the basic model are suggested to facilitate estimation within a more restricted empirical framework. The model is illustrated by an application to asparagus, a perennial vegetable crop.

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