Amer & Fox (1992) subsequently reported that
disparities between estimates of REVs calculated in
different ways disappear when REVs are calculated
using a neoclassical model based on the theory of a
firm. This is the approach used by Santarossa et al.
(2004) and the UK Profitable Lifetime Index (£PLI).
The conventional approach to the derivation of REVs
by rescaling the production enterprise to a fixed
input, output or profit implicitly makes unreasonable
assumptions about the behaviour of farmers. They