Assessing the impacts of stochastic trend in crop acreage supply response model
This paper demonstrates the need to revisit the way a technical change has been incorporated in a crop acreage supply response model. Three different versions of technological change were introduced and compared: no trend, deterministic trend, and stochastic trend. The results confirm the need to treat a technology variable as a stochastic trend for better results in crop acreage supply response model specifications.
Publication Source (Journal or Book title)
Adhikari, M., Paudel, K., Houston, J., & Bukenya, J. (2008). Assessing the impacts of stochastic trend in crop acreage supply response model. Applied Economics, 295-302. https://doi.org/10.1080/00036840500461881