We propose a theoretically consistent method for calibrating input (and output) price elasticities (of agricultural crops) from a minimal set of given estimates. Our review of production theory suggests three starting points for the exercise : (a) inputs and outputs have to be classified by...

We show a simple but novel property of Lagrange multipliers in non-linear constrained optimization: at the optimum, the product of the objective function value with its scale elasticity is equal to the sum of the products of every Lagrange multiplier with the right-hand side coefficient and the...