STOCHASTIC DIFFERENTIAL EQUATIONS PARAMETER ESTIMATION: THE GROWTH PATH OF RICE PRODUCTION
(Universidad San Francisco Xavier de Chuquisaca, Bolivia)
The objective of this article is the identification of the parameters that control the stochastic growth path of the rice production in the low lands of Eastern Bolivia. I show that the farm’s growth path of the sowed surfaces is different when the farmer considers the market price as an element of production decisions. Indeed, the farmer invests systematically, increasing the sowed surfaces, the whole production surplus when he ignores the signals of the market. Considering changes in the price level, the trajectory of the deterministic model becomes an investment possibilities frontier; while the investment levels and thus, the sowed surfaces, changes according to the selling price of rice.
Keywords: Agriculture of colonization; Parameter estimation; Rice production; Stochastic differential models.
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