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Panel Data Estimation Methods on Supply and Demand Elasticities: The Case of Cotton in Greece

Published online by Cambridge University Press:  26 January 2015

Christina Kotakou
Christina Kotakou*
Affiliation:
Department of Economics, University of Macedonia, Thessaloniki, Greece
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Abstract

This article examines the effects of the application of panel data estimation methods on a system of equations with unbalanced panel data. We apply pooled, random-effects, and fixed-effects estimation in three data sets: small, medium, and large farms to examine the relationship between farm size and the elasticity of cotton supply with respect to cotton price. Our results indicate that the adoption of various estimation methods entails different estimated parameters both in terms of their absolute value and in terms of their statistical significance. Additionally, the elasticity of cotton supply with respect to price varies according to farm size.

Keywords

farm sizepanel datasupply elasticitysystems of equationsC33D21Q18
Type
Research Article
Information
Journal of Agricultural and Applied Economics , Volume 43 , Issue 1 , February 2011 , pp. 111 - 129
Copyright
Copyright © Southern Agricultural Economics Association 2011

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