Profit maximization, returns to scale, separability, and measurement error in state-level agricultural technology /
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| Other Authors: | , , |
| Format: | Thesis Book |
| Language: | English |
| Published: |
1989.
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| Online Access: | Link to OAKTrust copy |
| Abstract: | All analyses of agricultural production take place subject to a set of maintained hypotheses which are either believed to be true or at least widely accepted as plausible for the problem at hand. Maintained hypotheses often include some combination or subset of profit-maximizing behavior, constant returns to scale, consistent aggregation over commodities and/or economic units, non-joint technology, and a second order Taylor series expansion functional form. These hypotheses, when valid, have important implications relevant for model specification and analytical simplification. However, maintaining them when they are not valid can lead to serious mistakes including erroneous inferences that adversely affect public policies and entrepreneurial decisions. Thus, given their importance and the frequency with which one or more of these hypotheses are maintained in empirical studies, particularly using aggregated data. It is essential that greater attention be devoted to testing for their legitimacy. A nonparametric analysis of agricultural production behavior was conducted for each of the contiguous 48 states for the period 1956-1982 subject to the maintained joint hypotheses of a state-level convex technology and nonregressive technical change. Both deterministic (exhaustive search for violations) and stochastic (measurement error) test procedures following Varian (1984, 1985) were used to examine consistency of the data with several hypotheses.. |
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| Item Description: | Typescript (photocopy). Vita. "Major subject: Agricultural economics." |
| Physical Description: | ix, 101 leaves ; 29 cm |
| Bibliography: | Includes bibliographical references. |