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Profit Maximization: Translog Functions applied to Indian Agriculture

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  • P. N. Junankar

Abstract

In this paper we test the profit maximization hypothesis using Indian agricultural data on a farm-level basis. The paper employs a translog variable profit function and the implied input share equations to test the hypothesis. The model is estimated by Zellner's Seemingly Unrelated Regressions method with restrictions within and across equations. The restrictions implied by the theory are tested. The tests reject the profit maximization hypothesis.

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Bibliographic Info

Paper provided by Queen's University, Department of Economics in its series Working Papers with number 313.

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Length: 27
Date of creation: 1978
Date of revision:
Handle: RePEc:qed:wpaper:313

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Cited by:
  1. Frisvold, George B., 2005. "Transaction Costs and Institutional Innovations in Agricultural Labor Contracts," 2005 Annual meeting, July 24-27, Providence, RI 19495, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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