ESTIMATING THE ILL-POSED PROBLEM IN AGRICULTURAL ECONOMICS USING GENERALIZED MAXIMUM ENTROPY

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MOUSAVI SEYED HABIB ELAH; SHAHVARI NEGAR; FEIZI IMAN

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Journal: Journal of Agricultural Economics and Development Year:2017 | Volume:25 | Issue:99 Page(s): 221-247

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Title

ESTIMATING THE ILL-POSED PROBLEM IN AGRICULTURAL ECONOMICS USING GENERALIZED MAXIMUM ENTROPY

Author(s)

MOUSAVI SEYED HABIB ELAH | SHAHVARI NEGAR | FEIZI IMAN | Issue Writer Certificate

Keywords

ILL-POSED PROBLEMQ1

MAXIMUM ENTROPYQ2

DEMAND AND SUPPLY ELASTICITESQ1

Abstract

One of the most important problems in econometric methods, in order to estimate the considered parameters, is called the ILL-POSED PROBLEM. This problem occurs due to the lack of sufficient data which causes very low or, in some cases, negative degree of freedom. The ILL-POSED PROBLEMs restrict researchers in agricultural economics studies especially in developing countries such as Iran. This problem is more evident in regional or provincial cases. With this approach and in order to create a favorable environment for economic researches in the agriculture sector, this paper applied the General MAXIMUM ENTROPY (GME) approach to calculate the supply and demand elasticities of provincial wheat markets in the case of insufficient data. Results indicated that under such circumstances, the GME estimations are more efficient than the ordinary least squares (OLS) ones; but in the case of sufficient data, the classical estimation methods would be preferable.

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APA: Copy

MOUSAVI, SEYED HABIB ELAH, SHAHVARI, NEGAR, & FEIZI, IMAN. (2017). ESTIMATING THE ILL-POSED PROBLEM IN AGRICULTURAL ECONOMICS USING GENERALIZED MAXIMUM ENTROPY. EQTESAD-E KESHAVARZI VA TOWSE'E, 25(99 ), 221-247. SID. https://sid.ir/paper/24433/en

Vancouver: Copy

MOUSAVI SEYED HABIB ELAH, SHAHVARI NEGAR, FEIZI IMAN. ESTIMATING THE ILL-POSED PROBLEM IN AGRICULTURAL ECONOMICS USING GENERALIZED MAXIMUM ENTROPY. EQTESAD-E KESHAVARZI VA TOWSE'E[Internet]. 2017;25(99 ):221-247. Available from: https://sid.ir/paper/24433/en

IEEE: Copy

SEYED HABIB ELAH MOUSAVI, NEGAR SHAHVARI, and IMAN FEIZI, “ESTIMATING THE ILL-POSED PROBLEM IN AGRICULTURAL ECONOMICS USING GENERALIZED MAXIMUM ENTROPY,” EQTESAD-E KESHAVARZI VA TOWSE'E, vol. 25, no. 99 , pp. 221–247, 2017, [Online]. Available: https://sid.ir/paper/24433/en

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