Chinese Argricultural Production Function

References

• Zinai Li, Econometrics: Methods and Applications (in Chinese), 1992, p.68.
• W. H. Greene, Econometric Analysis, 4th Ed., Chapter 10, Example 10.5, 426-430.
• A. Zellner and N. Revankar, "Generalized Production Functions," Review of Economic Studies 37, 1970, 241-250.

Variables

• Q: Foods Output
• L: Labor Input
• K: Acres
• F: Ferterizer
  (Original Data, Updated Data)

Models: Production Functions (Part I)

• Linear
  Q/K = b₀ + b₁ (L/K) + b₂ (F/K) + e
  (Program)

• Cobb-Douglas (Log-Linear)
  ln(Q/K) = b₀ + b₁ ln(L/K) + b₂ ln(F/K) + e
  (Program)

• Generalized Cobb-Douglas
  ln(Q/K) + q (Q/K) = b₀ + b₁ ln(L/K) + b₂ ln(F/K) + e
  (Program)

Models: Production Functions (Part II)

• CES (Constant Elasticity of Subsitution)
  ln(Q/K) = b₀ + 1/b₃ ln(b₁ (L/K)^b₃ + b₂ (F/K)^b₃) + e
  (Program)

• Generalized CES
  ln(Q/K) + q (Q/K) = b₀ + 1/b₃ ln(b₁ (L/K)^b₃ + b₂ (F/K)^b₃) + e
  (Program)

• Box-Cox
  (Q/K)^(q) = b₀ + b₁ (L/K)^(l) + b₂ (F/K)^(l) + e
  (Program)