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The Application of Robust Regression to a Production Function Comparison – the Example of Swiss Corn

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Abstract

The adequate representation of crop response functions is crucial for agri-environmental modeling and analysis. So far, the evaluation of such functions focused on the comparison of different functional forms. The perspective is expanded in this article by considering an alternative regression method. This is motivated by the fact that exceptional crop yield observations (outliers) can cause misleading results if least squares regression is applied. We show that such outliers are adequately treated if robust regression is used instead. The example of simulated Swiss corn yields shows that the use of robust regression narrows the range of optimal input levels across different functional forms and reduces potential costs of misspecification.

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File URL: http://www.ied.ethz.ch/pub/pdf/IED_WP02_Finger.pdf
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Bibliographic Info

Paper provided by IED Institute for Environmental Decisions, ETH Zurich in its series IED Working paper with number 08-02.

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Length: 22 pages
Date of creation: Jun 2008
Date of revision:
Handle: RePEc:ied:wpsied:08-02

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Keywords: production function estimation; production function comparison; robust regression; crop response;

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References

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  1. Meinke, H. & Baethgen, W. E. & Carberry, P. S. & Donatelli, M. & Hammer, G. L. & Selvaraju, R. & Stockle, C. O., 2001. "Increasing profits and reducing risks in crop production using participatory systems simulation approaches," Agricultural Systems, Elsevier, vol. 70(2-3), pages 493-513.
  2. Jan-Egbert Sturm & Jakob De Haan, 2001. "How robust is the relationship between economic freedom and economic growth?," Applied Economics, Taylor & Francis Journals, vol. 33(7), pages 839-844.
  3. Llewelyn, Richard V. & Featherstone, Allen M., 1997. "A comparison of crop production functions using simulated data for irrigated corn in western Kansas," Agricultural Systems, Elsevier, vol. 54(4), pages 521-538, August.
  4. Rajsic, Predrag & Weersink, Alfons, 2008. "Do farmers waste fertilizer? A comparison of ex post optimal nitrogen rates and ex ante recommendations by model, site and year," Agricultural Systems, Elsevier, vol. 97(1-2), pages 56-67, April.
  5. Godard, C. & Roger-Estrade, J. & Jayet, P.A. & Brisson, N. & Le Bas, C., 2008. "Use of available information at a European level to construct crop nitrogen response curves for the regions of the EU," Agricultural Systems, Elsevier, vol. 97(1-2), pages 68-82, April.
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Citations

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Cited by:
  1. Dewbre, Joshua, 2010. "Improving resource allocation and incomes in Vietnamese agriculture," IFPRI discussion papers 984, International Food Policy Research Institute (IFPRI).
  2. Justin Caron & Markus Ohndorf, 2010. "Irreversibility and Optimal Timing of Climate Policy," IED Working paper 10-14, IED Institute for Environmental Decisions, ETH Zurich.
  3. Robert Finger & Stéphanie Schmid, 2008. "Modeling agricultural production risk and the adaptation to climate change," Agricultural Finance Review, Emerald Group Publishing, vol. 68(1), pages 25-41, September.
  4. Markus Ohndorf, 2010. "Optimal Monitoring for project-based Emissions Trading Systems under incomplete Enforcement," IED Working paper 10-13, IED Institute for Environmental Decisions, ETH Zurich.
  5. Thomas Bernauer & Lena Maria Schaffer, 2010. "Climate Change Governance," IED Working paper 10-12, IED Institute for Environmental Decisions, ETH Zurich.
  6. Di Falco, Salvatore & Veronesi, Marcella, 2012. "Managing Environmental Risk in Presence of Climate Change: The Role of Adaptation in the Nile basin of Ethiopia," 86th Annual Conference, April 16-18, 2012, Warwick University, Coventry, UK 134775, Agricultural Economics Society.
  7. Finger, Robert, 2011. "Reductions of Agricultural Nitrogen Use Under Consideration of Production and Price Risks," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114356, European Association of Agricultural Economists.
  8. Moritz Rohling & Markus Ohndorf, 2010. "Prices vs. Quantities with Fiscal Cushioning," IED Working paper 10-11, IED Institute for Environmental Decisions, ETH Zurich.
  9. Finger, Robert, 2012. "Nitrogen use and the effects of nitrogen taxation under consideration of production and price risks," Agricultural Systems, Elsevier, vol. 107(C), pages 13-20.
  10. Ines Kapphan & Pierluigi Calanca & Annelie Holzkaemper, 2011. "Climate Change, Weather Insurance Design and Hedging Effectiveness," IED Working paper 11-17, IED Institute for Environmental Decisions, ETH Zurich.
  11. Blasch, Julia & Farsi, Mehdi, 2012. "Retail demand for voluntary carbon offsets – a choice experiment among Swiss consumers," MPRA Paper 41259, University Library of Munich, Germany.
  12. Horowitz, John & Ueda, Kohei, 2013. "Paying Farmers to Reduce Nitrogen Application on Corn: The Baseline Approach," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150561, Agricultural and Applied Economics Association.
  13. Finger, Robert & Gerwig, Claude N., 2007. "The Impact Of Climate Change On The Profitability Of Site Specific Technologies," 47th Annual Conference, Weihenstephan, Germany, September 26-28, 2007 7574, German Association of Agricultural Economists (GEWISOLA).
  14. Thomas Epper & Helga Fehr-Duda & Renate Schubert, 2011. "Energy-Using Durables: The Role of Time Discounting in Investment Decisions," IED Working paper 11-16, IED Institute for Environmental Decisions, ETH Zurich.
  15. Finger, Robert, 2012. "Modeling the sensitivity of agricultural water use to price variability and climate change—An application to Swiss maize production," Agricultural Water Management, Elsevier, vol. 109(C), pages 135-143.
  16. Di Falco, Salvatore & Veronesi, Marcella, 2012. "Managing Environmental Risk In Presence Of Climate Change: Evidence From Ethiopia," 126th Seminar, June 27-29, 2012, Capri, Italy 126010, European Association of Agricultural Economists.
  17. Finger, Robert, 2012. "How strong is the “natural hedge”? The effects of crop acreage and aggregation levels," 123rd Seminar, February 23-24, 2012, Dublin, Ireland 122538, European Association of Agricultural Economists.
  18. Michele Baggio, 2012. "The Optimal Management of a Natural Resource with Switching Dynamics," IED Working paper 12-19, IED Institute for Environmental Decisions, ETH Zurich.
  19. Di Falco, Salvatore & Veronesi, Marcella, 2011. "On Adaptation To Climate Change And Risk Exposure In The Nile Basin Of Ethiopia," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 115549, European Association of Agricultural Economists.

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