A Nonparametric Kernel Representation of the Agricultural Production Function: Implications for Economic Measures of Technology
The issue of production function estimation has received recent attention, particularly in agricultural economics with the advent of precision farming. Yet, the evidence to date is far from unanimous on the proper form of the production function. This paper reexamines the use of the primal production function framework using nonparametric regression techniques. Specifically, the paper demonstrates how a nonparametric regression based on a kernel density estimator can be used to estimate a production function using data on corn production from Illinois and Indiana. Nonparametric results are compared to common parametric specifications using the Nadaraya-Watson kernel regression estimator. The parametric and nonparametric forms are also compared in terms of describing the true technology of the firm by obtaining measures of the elasticity of scale and the marginal physical product through nonparametric estimation of the gradient of the production surface. Finally, the elasticities of substitution are compared between both parametric and nonparametric representations.
|Date of creation:||01 Apr 2009|
|Date of revision:|
|Contact details of provider:|| Web page: http://www.aes.ac.uk/Email: |
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Daniel J. Henderson & Subal C. Kumbhakar, 2006. "Public and Private Capital Productivity Puzzle: A Nonparametric Approach," Southern Economic Journal, Southern Economic Association, vol. 73(1), pages 219–232, July.
- Berck, Peter & Geoghegan, Jacqueline & Stohs, Stephen, 1998.
"A strong test of the von Liebig hypothesis,"
Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series
qt0b81x36x, Department of Agricultural & Resource Economics, UC Berkeley.
- Hsiao, Cheng & Li, Qi & Racine, Jeffrey S., 2007.
"A consistent model specification test with mixed discrete and continuous data,"
Journal of Econometrics,
Elsevier, vol. 140(2), pages 802-826, October.
- Cheng Hsiao & Qi Li & Jeff Racine, 2006. "A Consistent Model Specification Test with Mixed Discrete and Continuous Data," IEPR Working Papers 06.47, Institute of Economic Policy Research (IEPR).
- Joseph C. Cooper, 2000.
"Nonparametric and Semi-Nonparametric Recreational Demand Analysis,"
American Journal of Agricultural Economics,
Agricultural and Applied Economics Association, vol. 82(2), pages 451-462.
- Cooper, Joseph C., 1999. "Nonparametric and Semi-Nonparametric Recreational Demand Analysis," MPRA Paper 24780, University Library of Munich, Germany.
- Henderson, Daniel & Millimet, Daniel, 2005.
"Pollution Abatement Costs and Foreign Direct Investment Inflows to U.S. States: A Nonparametric Reassessment,"
Departmental Working Papers
0507, Southern Methodist University, Department of Economics.
- Daniel J. Henderson & Daniel L. Millimet, 2007. "Pollution Abatement Costs and Foreign Direct Investment Inflows to U.S. States: A Nonparametric Reassessment," The Review of Economics and Statistics, MIT Press, vol. 89(1), pages 178-183, February.
- Ullah, Aman, 1988. "Nonparametric Estimation and Hypothesis Testing in Econometric Models," Empirical Economics, Springer, vol. 13(3/4), pages 223-49.
- Adonis Yatchew, 1998. "Nonparametric Regression Techniques in Economics," Journal of Economic Literature, American Economic Association, vol. 36(2), pages 669-721, June.
- Hardle, Wolfgang & Linton, Oliver, 1986.
"Applied nonparametric methods,"
Handbook of Econometrics,
in: R. F. Engle & D. McFadden (ed.), Handbook of Econometrics, edition 1, volume 4, chapter 38, pages 2295-2339
- Härdle, W.K., 1992. "Applied Nonparametric Methods," Discussion Paper 1992-6, Tilburg University, Center for Economic Research.
- Wolfgang Hardle & Oliver Linton, 1994. "Applied Nonparametric Methods," Cowles Foundation Discussion Papers 1069, Cowles Foundation for Research in Economics, Yale University.
- Hardle, W., 1992. "Applied Nonparametric Methods," Papers 9206, Tilburg - Center for Economic Research.
- Oliver LINTON, . "Applied nonparametric methods," Statistic und Oekonometrie 9312, Humboldt Universitaet Berlin.
- Hardle, W., 1992. "Applied Nonparametric Methods," Papers 9204, Catholique de Louvain - Institut de statistique.
- HÄRDLE, Wolfgang, 1992. "Applied nonparametric methods," CORE Discussion Papers 1992003, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Rilstone, Paul, 1991. "Nonparametric Hypothesis Testing with Parametric Rates of Convergence," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 32(1), pages 209-27, February.
- Mundlak, Yair, 1996. "Production Function Estimation: Reviving the Primal," Econometrica, Econometric Society, vol. 64(2), pages 431-38, March.
- Chambers, Robert G. & Lichtenberg, Erik, 1994.
"A Nonparametric Approach to the von Liebig-Paris Technology,"
197799, University of Maryland, Department of Agricultural and Resource Economics.
- Robert G. Chambers & Erik Lichtenberg, 1996. "A Nonparametric Approach to the von Liebig-Paris Technology," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(2), pages 373-386.
- Qi Li & Jeffrey Scott Racine, 2006. "Nonparametric Econometrics: Theory and Practice," Economics Books, Princeton University Press, edition 1, volume 1, number 8355, March.
- John DiNardo & Justin L. Tobias, 2001.
"Nonparametric Density and Regression Estimation,"
Journal of Economic Perspectives,
American Economic Association, vol. 15(4), pages 11-28, Fall.
- Charles Moss & Troy Schmitz, 2006. "A semiparametric estimator of the Zellner production function for corn: fitting the univariate primal," Applied Economics Letters, Taylor & Francis Journals, vol. 13(13), pages 863-867.
- Garth Holloway & Quirino Paris, 2002. "Production Efficiency in the von Liebig Model," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(5), pages 1271-1278.
- Martin van Ittersum & Ada Wossink, 2006. "Integrating Agronomic Principles into Production Function Specification: A Dichotomy of Growth Inputs and Facilitating Inputs," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(1), pages 203-214.
- Alan P. Ker & Barry K. Goodwin, 2000. "Nonparametric Estimation of Crop Insurance Rates Revisited," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(2), pages 463-478.
- Babcock, Bruce A. & Blackmer, A. M., 1994. "Ex Post Relationship Between Growing Conditions and Nitrogen Fertilizer Levels (The)," Staff General Research Papers 10582, Iowa State University, Department of Economics.
- A. Yatchew, 2000. "Scale economies in electricity distribution: a semiparametric analysis," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 15(2), pages 187-210.
- Babcock, Bruce A., 1992. "Effects of Uncertainty on Optimal Nitrogen Applications (The)," Staff General Research Papers 10588, Iowa State University, Department of Economics.
When requesting a correction, please mention this item's handle: RePEc:ags:aesc09:51063. 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 references are entirely missing, you can add them using this form.