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Testing for Input and Output Separability in Nebraska Agriculture Sector

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  • Shaik, Saleem
  • Helmers, Glenn A.

Abstract

This paper examines two issues. The first issue, test for time series properties of unit roots for input, output shares and quantity indexes. Here a comparison is drawn between the null hypothesis of unit roots and null hypothesis of stationarity, with seven of the twenty variables acknowledging both hypothesis. With regard to the issue of separability, our findings support the aggregation of input/output quantity indexes.

Further possible extensions to this study, would be to examine individual separability analysis, compute the Morishima elasticity of substitution to explain the same. In another extension, one could estimate the bias in the output and input technologies. From the econometric point of view, Monte Carlo simulations can be performed to generate a confidence interval for time series properties.

Suggested Citation

  • Shaik, Saleem & Helmers, Glenn A., 1998. "Testing for Input and Output Separability in Nebraska Agriculture Sector," Staff Papers 413403, University of Nebraska-Lincoln, Department of Agricultural Economics.
    • Handle: RePEc:ags:nbaesp:413403
    DOI: 10.22004/ag.econ.413403
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    File URL: https://ageconsearch.umn.edu/record/413403/files/AES_1998-08_paper2.pdf
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