The spatial distribution of economic activity has been the subject of much theoretical study during the last 150 years. The two-state study which provides primary evidence for this article is, to the authors' knowledge, the first attempt to analyze statistically the determinants of industrial location in rural communities with an explicit objective of more enlightened public action at the local, state, and federal levels.

This article demonstrates that both crop area and output elasticities can be calculated from a profit function. A Chambers/Just profit function (which includes land allocations as quasi-fixed factors) is used to derive shadow price equations for each crop area allocation. Jointly solving these shadow price equations for crop area makes it possible to calculate individual crop area elasticities. A profit function is specified to represent agricultural producers in the state of Iowa. Shadow price equations are jointly estimated with output supply and input demand equations. From these estimated equations, we derive the individual crop area response and output response to a change in prices. Copyright 2007, Oxford University Press.

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The EU Sugar Policy Regime and Implications of Reform w w w. e r s. u s d a. go v You can find additional information about ERS publications, databases, and other products at our website.

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