Paper Information

Journal:   AGRICULTURAL ECONOMICS: IRANIAN JOURNAL OF AGRICULTURAL ECONOMICS (ECONOMICS AND AGRICULTURE JOURNAL)   2009 , Volume 3 , Number 1; Page(s) 1 To 15.
 
Paper: 

COST STRUCTURE ANALYSIS OF CORN IN IRAN

 
Author(s):  YAZDANI S.*, ABEDI S.
 
* FACULTY OF AGRICULTURAL ECONOMIC AND DEVELOPMENT, UNIVERSITY OF TEHRAN, IRAN
 
Abstract: 

Corn is the third important strategic crop in the world after wheat and Barley. Iran uses this product as basic source for providing energy in Poultry Nutrition. Therefore, in this study, in order to estimate the production elasticities and effects of inputs in production of corn, a translog cost function was estimated. Moreover, advantages of using cost function instead of production function in analyzing the productive technology presented. Restricted non linear maximum likelihood method was used to estimate the model. The Allen partial cross elasticities for each pair of inputs confirm the substitution relationship among labor with fertilizer, seed and water. The results also indicate that machinery is as a complement for labor and substitute for fertilizer, water and seed. The amount of own price elasticity which is less than one indicating inelastic demand of labor input. The results also show that production of corn has decreasing return to scale (SE= 0/39).

 
Keyword(s): TRANSLOG COST FUNCTION, SUBSTITUTION ELASTICITY, RETURN TO SCALE, RESTRICTED NON LINEAR MAXIMUM LIKELIHOOD APPROACH, CORN
 
References: 
  • ندارد
 
  Persian Abstract Yearly Visit 48
 
Latest on Blog
Enter SID Blog