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A Rational Econometrtic Approach for Punjab Agriculture Associated with UOP Profit Function Model

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  • S. S. Kautala

    (Indian Agricultural Statistics Research Institute, New Delhi)

Abstract

Without making a proper statistical assessment, researchers tend to apply complex econometric tools to a theoretical model in providing analytical results involving time consuming process with extra efforts. After describing the shortcomings of production function model, an attempt has been made to econometrically examine related aspects SURE methodology associated with theoretical framework of Cobb-Douglas UOP profit function. Keeping in the estimated magnitude of contemporaneous covariance of production disturbances in a system of two equations, the study confirms the suitability of standard linear procedures for determination of UOP profit function and derived labor demand function by employing farm level wheat data to each equation separately for drawing inferences through the subtle interpretation of related elasticities.

Suggested Citation

  • S. S. Kautala, 2001. "A Rational Econometrtic Approach for Punjab Agriculture Associated with UOP Profit Function Model," Indian Economic Review, Department of Economics, Delhi School of Economics, vol. 36(2), pages 393-410, July.
    • Handle: RePEc:dse:indecr:v:36:y:2001:i:2:p:393-410
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    More about this item

    JEL classification:

    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

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