DAMAGE CONTROL AND INCREASING RETURNS

Authors
Citation
G. Fox et A. Weersink, DAMAGE CONTROL AND INCREASING RETURNS, American journal of agricultural economics, 77(1), 1995, pp. 33-39
Citations number
23
Categorie Soggetti
Economics,"AgricultureEconomics & Policy
ISSN journal
00029092
Volume
77
Issue
1
Year of publication
1995
Pages
33 - 39
Database
ISI
SICI code
0002-9092(1995)77:1<33:DCAIR>2.0.ZU;2-O
Abstract
The indirect action of damage control inputs means the marginal produc tivity of these inputs depends on their effectiveness in controlling t he level and size of production loss caused by the damage agent. Incre asing returns to damage control inputs can occur even when control and damage functions are concave. The result implies more attention needs to be paid to the functional form selection for damage and control fu nctions in empirical work on pest control and other types of damage co ntrol inputs. In addition, the possibility of increasing returns may u ndermine the general use of taxes to reduce pesticide use.