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ps6_06052

# ps6_06052 - Problem Set 6 1 Modeling agricultural demand...

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Unformatted text preview: Problem Set 6 1. Modeling agricultural demand for water: (a) What is the difference between the type of data used by Ayer and Hoyt vs. Hooker and Alexander in their studies of agricultural water use? What are the limitations of each type of data? (b) Contrast the methodologies used by More and Hedges vs. Hooker and Alexander to obtain an agricultural demand function for wa- ter. (c) Discuss the differences in estimates of elasticities of demand for water in agriculture obtained via programming models versus the results obtained by econometric techniques. What are the advan- tages and drawbacks of each? Which would you recommend, and why? 2. Groundwater: This problem assumes an aquifer with a natural net recharge of 210 thousand acre-feet per year. All the pumped water is used for irrigation and 30% of the applied irrigation water returns to the aquifer through percolation. The average cost of pumping in dollars per 1000-acre feet is: AC ( x ) = 50000- 5 x (1) where x is the stock of water stored in the aquifer, measured in thou- sands of acre-feet.sands of acre-feet....
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ps6_06052 - Problem Set 6 1 Modeling agricultural demand...

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