Simultaneous-Equations Bias And Agricultural Production Function Estimation
During the twenty years or so since some early estimations of production functions in agriculture there has been considerable discussion of many of the technical problems associated with such estimation. Although the simultaneous nature of production decisions, leading to the determination of input levels in the production function, was pointed out early in the piece by Marschak and Andrews, little attention has been paid to this aspect of the problem until comparatively recently. The only systematic treatment of these problems is that of Hoch, although there appeared recently in the Economic Record an extended controversy between Konijn and Soper. The purpose of the present paper is to demonstrate that when the profit maximisation conditions are cast in a slightly different form, Hoch's conclusions concerning the existence of simultaneous equations bias cannot be sustained, although there is similarity of assumptions throughout. The treatment initially will be in terms of farms producing a single output. However, the examination of the simultaneous equation problem will be extended to the multiple output case where it will be shown that problems of an entirely different nature arise. The Cobb-Douglas form of production function will be adhered to throughout.
Volume (Year): 08 (1964)
Issue (Month): 02 (December)
|Contact details of provider:|| Postal: AARES Central Office Manager, Crawford School of Public Policy, ANU, Canberra ACT 0200|
Phone: 0409 032 338
Web page: http://www.aares.info/
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:ags:ajaeau:22659. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.