“…The Cobb‐Douglas and Translog forms are most commonly used. According to the likelihood ratio tests, we adopt a more flexible Translog form, as follows:
where
denotes the total production and operating income of household
, this method of treating total income as the result of resource transformation is consistent with Xie and Xie (
2021);
represents input factors in the production and operation of household
, including labor, capital, and land, of which labor is the amount of labor input time in various production and operation activities measured in hours; capital refers to the capital input in agricultural production and nonagricultural production, including vehicles, machinery, and factory buildings, and land represents the planting area.…”