2013
DOI: 10.9755/ejfa.v25i1.9060
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Model development for wheat production: Outliers and multicollinearity<br>problem in Cobb-Douglas production function

Abstract: Despite the important role that production function has played in growth literature, few attempts have been made to change the methodology to estimate it. The Cobb-Douglas functions are among the best known production functions utilized in applied production analysis. This paper describes development of a new model based on Cobb-Douglas production function with the used of robust method and partial least squares path modeling for parameter estimation. The new model attempted to solve two main problems in model… Show more

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Cited by 5 publications
(3 citation statements)
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“…Our Bpessimistic scenario^identifies the year (during the 26-year period) with the greatest losses for each of the four types of disaster; these highest losses are added together and expressed as a percentage of the average production for the province. For resource and input constraints, we used the CobbDouglas production function to simulate and predict their impact on grain production (Gao 2012;Enaami et al 2013). First, all of the indices need to be transformed into dimensionless indices using the following functions:…”
Section: Methodsmentioning
confidence: 99%
“…Our Bpessimistic scenario^identifies the year (during the 26-year period) with the greatest losses for each of the four types of disaster; these highest losses are added together and expressed as a percentage of the average production for the province. For resource and input constraints, we used the CobbDouglas production function to simulate and predict their impact on grain production (Gao 2012;Enaami et al 2013). First, all of the indices need to be transformed into dimensionless indices using the following functions:…”
Section: Methodsmentioning
confidence: 99%
“…Parlinska & Dareev (2011) estimated agricultural production function for Poland and Republic of Buryatia. A simple two-input Cobb-Douglas function was used to estimate production functions for both countries/regions using a time series from 2000-2009. Enaami, Mohamed and Ghani (2013 have shown even more advantages of using Cobb-Douglas function as a basis for production function estimation.…”
Section: Methodsmentioning
confidence: 99%
“…So far, there is no unified measurement method in the academic circle. The existing methods mainly include the production function method [19,20], comprehensive evaluation method [21], index method [22] and non-parametric method. Among them, the production function method has limitations in assuming complete market competition and evaluating single period data; Comprehensive evaluation method and index method have strong subjectivity in the selection of evaluation indicators and the distribution of weight.…”
Section: Literature Reviewmentioning
confidence: 99%