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A NOTE ON THE ESTIMATION OF COBB‐DOUGLAS PRODUCTION FUNCTIONS WHEN SOME EXPLANATORY VARIABLES HAVE ZERO VALUES
Author(s) -
Battese George E.
Publication year - 1997
Publication title -
journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.157
H-Index - 61
eISSN - 1477-9552
pISSN - 0021-857X
DOI - 10.1111/j.1477-9552.1997.tb01149.x
Subject(s) - zero (linguistics) , cobb , production (economics) , mathematics , econometrics , variable (mathematics) , statistics , estimation , economics , mathematical analysis , microeconomics , philosophy , linguistics , genetics , management , biology
Cases of zero‐values of some input variables in production studies often arise in agricultural economics. By using a dummy variable, associated with the incidence of the zero observations, the appropriate parameters of Cobb‐Douglas production functions can be estimated in an unbiased way.