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http://dx.doi.org/10.5762/KAIS.2015.16.9.5843

A Study on the Factor Demand Structure of Sweet Persimmon  

Yoo, Li-Na (Center for Food, Agricultural & Rural Policy)
Hwang, Su-Chul (Center for Food, Agricultural & Rural Policy)
Publication Information
Journal of the Korea Academia-Industrial cooperation Society / v.16, no.9, 2015 , pp. 5843-5849 More about this Journal
Abstract
This study analyzes the factor demand structure of sweet persimmon as a part of finding out cost cutting measures. Income and cost data from 2001~2013 Agricultural Income Survey are used for placing the translog cost function and estimating price elasticies and cross elasticities of labor, capital and intermediate input. The result shows that own price elasticities of all factors are small in absolute terms. Additionally the result indicates capital and intermediate input cannot be a substitution for labor, which is a top-line cost-share. It means that the demand for labor cconstitutionally can't be reduced in a short time. This implies that cost reduction should be done focusing on intermediate input, particularly on fertilizer and materials which have higher price elasticity of demand.
Keywords
Factor demand structure; price elasticity; cross elasticity; sweet persimmon; cost function;
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