Production Efficiency in the von Liebig Model

The objective of this paper is to revisit the von Liebig hypothesis by reexamining five samples of experimental data and by applying to it recent advances in Bayesian techniques. The samples were published by Hexem and Heady as described in a further section. Prior to outlining the estimation strategy, we discuss the intuition underlying our approach and, briefly, the literature on which it is based. We present an algorithm for the basic von Liebig formulation and demonstrate its application using simulated data (table 1). We then discuss the modifications needed to the basic model that facilitate estimation of a von Liebig frontier and we demonstrate the extended algorithm using simulated data (table 2). We then explore, empirically, the relationships between limiting water and nitrogen in the Hexem and Heady corn samples and compare the results between the two formulations (table 3). Finally, some conclusions and suggestions for further research are offered.

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