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The CET-CES-Generalized Leontief Variable Profit Function: An Application to Indian Agriculture

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  • Behrman, Jere R, et al

Abstract

The authors examine the pattern of resource utilization and output supply in Indian agriculture, using a panel of 46 plots observed through six growing seasons. The examination is concluded using a generalization consisting of replacing the Leontief base with a more flexible constant elasticity base, at a cost of one additional parameter to be estimated. For estimation the authors develop a feasible nonlinear generalized least squares estimator that controls for the fact that many plots grow only one crop. These two features generate empirical results that are plausible in light of the neoclassical model of profit maximizing behavior. Coauthors are C. A. Knox Lovell, Robert A. Pollak, and Robin C. Sickles. Copyright 1992 by Royal Economic Society.

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  • Behrman, Jere R, et al, 1992. "The CET-CES-Generalized Leontief Variable Profit Function: An Application to Indian Agriculture," Oxford Economic Papers, Oxford University Press, vol. 44(2), pages 341-354, April.
    • Handle: RePEc:oup:oxecpp:v:44:y:1992:i:2:p:341-54
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    Cited by:

    1. Perekhozhuk, Oleksandr, 2007. "Marktstruktur und Preisbildung auf dem ukrainischen Markt für Rohmilch," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 41, number 92322.
    2. Levent Kutlu & Shasha Liu & Robin C. Sickles, 2022. "Cost, Revenue, and Profit Function Estimates," Springer Books, in: Subhash C. Ray & Robert G. Chambers & Subal C. Kumbhakar (ed.), Handbook of Production Economics, chapter 16, pages 641-679, Springer.
    3. Wilhelm Althammer & Erik Hille, 2016. "Measuring climate policy stringency: a shadow price approach," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 23(4), pages 607-639, August.

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