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Paper Information

Journal:   EQTESAD-E KESHAVARZI VA TOWSE'E   Fall 2002 , Volume 10 , Number 3 (39); Page(s) 49 To 70.
 
Paper: 

ESTIMATION OF PROFIT, INPUT DEMANDS AND SUPPLY OF IRRIGATED AND RAIN FED WHEAT IN IRANIAN AGRICULTURE

 
 
Author(s):  HOZHBAR KIANI K.*, HAJIAHMAD N.
 
* Faculty of Economics and Political &cience, Shahid Beheshti University, Tehran, Iran
 
Abstract: 

Many studies show that farmers in developing countries are profit maximizer within the technological constraints they face.
Very powerful arguments have emerged in applied econometrics with the development of the duality theory to study the interactions between production, profit and cost functions. A profit (or cost) function relates maximized profit (or minimized costs) to prices of outputs and inputs, such as fixed inputs and agro-climatic and social variables. The parameters of a profit function contain all the information about the underlying production function.
The present paper provides an estimation of profits, inputs and demand and supply of irrigated and rain fed wheat for Iran, using Iterative Seemingly Unrelated Regressions (ISUR) method. Using Translog Profit Function, the profits, inputs demands, and supply were estimated jointly. Finally, own and cross price elasticities of input demands and supply were calculated.

 
Keyword(s): DUALITY, ITERATIVE SEEMINGLY UNRELATED REGRESSIONS, PROFIT, INPUT DEMAND, SUPPLY, OWN PRICE ELASTICITIES, CROSS PRICE ELASTICITIES
 
References: 
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