Abstract

CANCINO, Susan  and  CANCINO ESCALANTE, Giovanni Orlando. APPLICATION OF THE NERLOVIAN PARTIAL ADJUSTMENT MODEL TO ESTIMATE PLANTAIN SUPPLY ELASTICITY IN COLOMBIA. Tend. [online]. 2021, vol.22, n.2, pp.57-75.  Epub Aug 02, 2021. ISSN 0124-8693.  https://doi.org/10.22267/rtend.212202.168.

The objective of this study was to estimate the response of the plantain supply and the short and long-term elasticities through the partial adjustment model developed by Nerlove, based on the period between 2000 and 2018. An explanatory, quantitative and correlational research design was applied and for the empirical estimation, the methodology of autoregressive vectors was used. The results indicated that the coefficients associated with lagged price and production were positive, significant and consistent with economic theory. The short-term elasticities were inelastic and similar to studies related to permanent crops, thus price polices are not an effective tool to increase supply due the low response to price movements.

JEL: C01; Q10; Q11; Q12; Q18

Keywords : cointegration; stationarity; price expectations; supply response; vector autoregressive..

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