A Mixed Input Demand System with Generalized Marginal Cost Shares: An Application to the Agricultural Sector in Greece

The paper develops a differential mixed system which accommodates in a theoretically consistent way both price-predetermined, quantity-dependent and quantity-predetermined, price-dependent input demand functions. In addition, it introduces generalized marginal cost shares obtaining, thus, a synthetic system which nests the well known Rotterdam and CBS parameterizations as special cases. The mixed input demand system is applied, for illustrative purposes, to Greek agriculture during 1961-2002.