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Estimation of Gain Isoquants and a Decision Model Application for Swine Production
Author(s) -
Sonka Steven T.,
Heady Earl O.,
Dahm P. Fred
Publication year - 1976
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/1239263
Subject(s) - autocorrelation , production (economics) , econometrics , instrumental variable , variable (mathematics) , estimation , statistics , livestock , mathematics , economics , ecology , microeconomics , biology , mathematical analysis , management
Historic estimates of livestock production functions have used repeated observations on the animals to estimate the overall gain surface. The estimates involve autocorrelation accordingly. To circumvent this problem, gain isoquants are estimated directly by means of an instrumental variable approach. Data are from a swine experiment designed for the purpose with 648 hogs. Protein supplement and corn serve as the substitute inputs. Protein supplement is estimated as the instrumental variable. Isoquant equations then are predicted for three weight intervals. Finally, a decision model is applied for economic choice. Comparisons are made for various price sets of recent years.