CHOOSING AN EMPIRICAL PRODUCTION FUNCTION TO ESTIMATE ECONOMIC VALUE OF IRRIGATION WATER: A CASE STUDY OF WHEAT PRODUCTION

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HOSSEINZAD J.; SALAMI H.A.

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Journal: Journal of Agricultural Economics and Development Year:2005 | Volume:12 | Issue:4 (48) Page(s): 53-74

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Title

CHOOSING AN EMPIRICAL PRODUCTION FUNCTION TO ESTIMATE ECONOMIC VALUE OF IRRIGATION WATER: A CASE STUDY OF WHEAT PRODUCTION

Author(s)

HOSSEINZAD J. | SALAMI H.A. | Issue Writer Certificate

Keywords

FUNCTIONAL FORM;PRODUCTION FUNCTION; CORRECT SPECIFICATION; ECONOMIC VALUE OF WATER INPUTQ3

Abstract

In this study, the effect of the choice of production function on the estimated structural parameters, and also the importance of correct functional form specification to prevent incorrect policy implications are shown. To this end, first, a number of flexibile and inflexible functional forms which are assumed to represent the wheat production process in Alavian region are estimated. Then, the economic values of water are computed based on the estimated parameters of various production functions. A comparison of economic value of water input derived from parameters of the correctly specified functional form, using the econometric criteria and specification tests, with those of the inappropriate functional forms, reveals a substantial difference between the computed values for the water input. This leads to conclusion that the cost of functional form misspecification can be considerable if such information is used as a basis for a new policy formation in the agricultural sector.

Cites

References

ECONOMIC VALUE OF IRRIGATION WATER USING THE FLEXIBLE PRODUCTION FUNCTIONS (SAVEH CASE STUDY)

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APA: Copy

HOSSEINZAD, J., & SALAMI, H.A.. (2005). CHOOSING AN EMPIRICAL PRODUCTION FUNCTION TO ESTIMATE ECONOMIC VALUE OF IRRIGATION WATER: A CASE STUDY OF WHEAT PRODUCTION. EQTESAD-E KESHAVARZI VA TOWSE'E, 12(4 (48)), 53-74. SID. https://sid.ir/paper/396262/en

Vancouver: Copy

HOSSEINZAD J., SALAMI H.A.. CHOOSING AN EMPIRICAL PRODUCTION FUNCTION TO ESTIMATE ECONOMIC VALUE OF IRRIGATION WATER: A CASE STUDY OF WHEAT PRODUCTION. EQTESAD-E KESHAVARZI VA TOWSE'E[Internet]. 2005;12(4 (48)):53-74. Available from: https://sid.ir/paper/396262/en

IEEE: Copy

J. HOSSEINZAD, and H.A. SALAMI, “CHOOSING AN EMPIRICAL PRODUCTION FUNCTION TO ESTIMATE ECONOMIC VALUE OF IRRIGATION WATER: A CASE STUDY OF WHEAT PRODUCTION,” EQTESAD-E KESHAVARZI VA TOWSE'E, vol. 12, no. 4 (48), pp. 53–74, 2005, [Online]. Available: https://sid.ir/paper/396262/en

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