Abstract
This article explores the theoretical and empirical issues in unit root nonstationarity for multiproduct acreage response systems. A wheat/barley acreage response system for the praire provinces region of Canada is estimated and the existence of a unit root cannot be rejected empirically. It is shown that while the estimates of this system are very similar whether or not a unit root is assumed, the effects of a one-shot policy shock in the two alternative models are very different.
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