Price Elasticity of Production Factors in Beijing’s Picking Gardens

Abstract

Picking agriculture is a form of leisure agriculture based on the concept of traditional garden. Due to their unique layout and construction style, picking gardens have different attractive elements, including sightseeing, leisure, entertainment, crop production, and crop picking. However, despite its increasing importance, there is no systematic research on price elasticity or price substitution elasticity of production factors in picking gardens. To fill this gap, we surveyed 308 farmers in five districts of Beijing and employed a translog cost function to compare the impact of operation patterns on peach and cherry production cost by estimating elasticities of substitution between and among inputs. We found that own-price elasticity of all input factors was negative, while substitution relationships existed between labor and land, labor and fertilizer, fertilizer and manure, and manure and pesticide. This indicates that Beijing’s agricultural sector is labor intensive, while fertilizer and pesticide are scarcely used.

Elasticity of Substitution, Price Effect and Sustainable Fertilizer Use: A Translog and SUR Analysis in China

“…n Greene (2017) argues that the cost function has no practical signifi cance except to provide an estimated value of γ 0 . In addition, in the actual operation, with the increase of parameters to be estimated, the number of cross-terms of the translog cost function expressed in Equation 8 increases rapidly, so it seriously loses the degree of freedom and greatly increases the collinearity among explanatory variables (Hao, 2015;Kitenge, 2015;Du et al, 2019). Thus, the present study adopts the cost share function shown in Equation 9 to make the estimations.…”

Analisis Kapasitas Produksi Telur Ayam Dan Efisiensi Pemberian Input Pada Perusahaan Ud. Fitra Abadi

“…Penerapan konsep elastisitas dalam teori produksi diperoleh berdasarkan aplikasi fungsi produksi. Besarnya nilai elastisitas menyatakan ukuran sensitivitas dari variabel output (dependen variabel) terhadap adanya perubahan pada variabel input (variabel bebas tertentu) dalam suatu fungsi produksi (Izekor and Alufohai, 2014 ;Du, et al 2019). Dalam hal ini berlaku bahwa variabel-variabel input lainnya dianggap tetap atau berlaku kondisi yang disebut ceteris paribus.…”

Spatially Illustrating Leisure Agriculture: Empirical Evidence from Picking Orchards in China

“…Apart from farm-based accommodation and events, leisure agriculture entails organizing dedicated leisure activities such as agriculture-based festivals, farm markets, wineries, and U-Picks [42], among which picking orchards are a popular form of leisure agriculture in China [42,64]. Picking orchards are cultivated fields allowing consumers to enter the field and directly harvest their own product.…”