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Robin C. Sickles - One of the best experts on this subject based on the ideXlab platform.
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Product diversification and attitudes toward risk in agricultural production
Journal of Productivity Analysis, 1994Co-Authors: Maria Amparo Ballivian, Robin C. SicklesAbstract:In this article we analyze the relationship between risk-avoidance behavior and economic jointness in a multi-output agricultural technology. We focus on farmer specific heterogeneity in attitudes towards risk-taking, while treating production uncertainty as unobserved stochastic error that is common to all region specific farms. We furthermore utilize a new flexible functional form, the Constant Elasticity of Transformation, Constant Elasticity of Substitution, Generalized Leontief (Behrman, Lovell, Pollak, and Sickles, [1992]) which has the appealing property of relative flexibility while ensuring proper curvature properties of the estimated multi-output technology over a larger sample region of the price/quantity space than a flexible form such as the Generalized Leontief [Diewert, 1971]. Our empirical study deals with small-scale agriculture in the Indian Semi-Arid Tropics (SAT), partly because of the importance of yield-related risk in this region, but also because we have measures of farmer specific risk attitudes in the SAT data. Our modeling approach allows for the calculation of the shadow cost of farmer specific risk attitudes in terms of foregone profits, while at the same time controlliing for the technical factors that give rise to multi-output production in the absence of risk. We are thus able to estimate these opportunity costs while modeling a multiple output technology in which cost complementarities can lead to diversified production and in which joint production is not always undertaken.
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Product diversification and attitudes toward risk in agricultural production
Journal of Productivity Analysis, 1994Co-Authors: Maria Amparo Ballivian, Robin C. SicklesAbstract:In this article we analyze the relationship between risk-avoidance behavior and economic jointness in a multi-output agricultural technology. We focus on farmer specific heterogeneity in attitudes towards risk-taking, while treating production uncertainty as unobserved stochastic error that is common to all region specific farms. We furthermore utilize a new flexible functional form, the Constant Elasticity of Transformation, Constant Elasticity of Substitution, Generalized Leontief (Behrman, Lovell, Pollak, and Sickles, [1992]) which has the appealing property of relative flexibility while ensuring proper curvature properties of the estimated multi-output technology over a larger sample region of the price/quantity space than a flexible form such as the Generalized Leontief [Diewert, 1971].
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THE CET-CES-Generalized Leontief VARIABLE PROFIT FUNCTION: AN APPLICATION TO INDIAN AGRICULTURE
Oxford Economic Papers, 1992Co-Authors: Jere R. Behrman, C. A. Knoxlovell, Robert A. Pollak, Robin C. SicklesAbstract:The authors examine the pattern of resource utilization and output supply in Indian agriculture, using a panel of 46 plots observed through six growing seasons. The examination is concluded using a generalization consisting of replacing the Leontief base with a more flexible constant elasticity base, at a cost of one additional parameter to be estimated. For estimation the authors develop a feasible nonlinear Generalized least squares estimator that controls for the fact that many plots grow only one crop. These two features generate empirical results that are plausible in light of the neoclassical model of profit maximizing behavior. Coauthors are C. A. Knox Lovell, Robert A. Pollak, and Robin C. Sickles. Copyright 1992 by Royal Economic Society.
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The Cet-Ces-Generalized Leontief Variable Profit Function: An Application to Indian Agriculture
1991Co-Authors: Jere R. Behrman, Robert A. Pollak, C. Lovell, Robin C. SicklesAbstract:The authors examine the pattern of resource utilization and output supply in Indian agriculture, using a panel of 46 plots observed through six growing seasons. The examination is concluded using a generalization consisting of replacing the Leontief base with a more flexible constant elasticity base, at a cost of one additional parameter to be estimated. For estimation the authors develop a feasible nonlinear Generalized least squares estimator that controls for the fact that many plots grow only one crop. These two features generate empirical results that are plausible in light of the neoclassical model of profit maximizing behavior. Coauthors are C. A. Knox Lovell, Robert A. Pollak, and Robin C. Sickles. Copyright 1992 by Royal Economic Society.(This abstract was borrowed from another version of this item.)
Jene K. Kwon - One of the best experts on this subject based on the ideXlab platform.
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Rapid Economic Growth with Increasing Returns to Scale and Little or no Productivity Growth
The Review of Economics and Statistics, 1995Co-Authors: Seung-rok Park, Jene K. KwonAbstract:Total factor productivities for 28 Korean manufacturing sectors were estimated jointly with markups, scale economies, and the capacity utilization rate using the short-run Generalized Leontief cost function. Concavity conditions necessary for the cost function to be well-behaved and consistent with a firm's optimizing behavior were imposed on the estimation by way of Bayesian inference. The study finds: (1) the superiority of the short-run equilibrium model over the long-run model and of the short-run Generalized Leontief cost function over the translog cost function; (2) market imperfection; (3) the existence of scale economies; and (4) biases in the traditional TFP measures. The study also suggests that a rapid growth of output is possible with negative TFP growth. Copyright 1995 by MIT Press.
Kazuhiko Nishimura - One of the best experts on this subject based on the ideXlab platform.
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Introduction of New Technology with a Sound Transition of the Input-Output Structure
Economic Systems Research, 2002Co-Authors: Kazuhiko NishimuraAbstract:We examine the general equilibrium repercussions associated with the introduction of new technologies, using the Generalized Leontief system that allows technological substitutions. We show that an untested introduction of cost-increasing technologies in any industry may result in creating a non-productive technological structure that does not satisfy the Hawkins-Simon condition, following the autonomous dynamic adjustment process with structural transitions in the economic system. Therefore, we propose a practicable control scheme of introducing cost-increasing technologies that strictly avoids the creation of non-productive structures in all periods of structural transition, using the available information on the ex ante technological structure.
Omer Gokcekus - One of the best experts on this subject based on the ideXlab platform.
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Trade liberalization and capacity utilization: New evidence from the Turkish rubber industry
Empirical Economics, 1998Co-Authors: Omer GokcekusAbstract:This study empirically tests the hypothesis that trade liberalization increases capacity utilization. It calculates capacity utilization for the Turkish rubber industry by using a production theory framework. More specifically, plant-level capacity utilization levels are calculated using a Generalized Leontief cost function system. Capacity utilization levels were low but improved when the trade regime shifted from a restrictive to a more liberalized one. The size and location of plants were two significant factors which created capacity utilization differences within the industry. However, capacity utilization levels appeared to improve primarily because of trade liberalization.
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Trade liberalization and productivity growth: new evidence from the Turkish rubber industry
Applied Economics, 1997Co-Authors: Omer GokcekusAbstract:This paper empirically examines the effects of a change in foreign trade regime on productivity growth. Based on a Generalized Leontief factor demand function system, total factor productivity growth (TFPG) rates are calculated for the Turkish rubber industry during a substantial trade liberalization in the 1980s: TFPG was significantly higher following trade liberalization. Technological change was the major contributor to this growth. When a panel data estimation technique is used to explain technological change, the effects of trade liberalization become clearer: a one percentage point increase in the protection level led to more than a one percentage point (1.27) decline in the technological change rate.
C. Richard Shumway - One of the best experts on this subject based on the ideXlab platform.
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Modeling Mexican agricultural production
Empirical Economics, 1999Co-Authors: Hongil Lim, C. Richard ShumwayAbstract:Results of time series tests (including unit root and deterministic and stochastic cointegration tests) imply that a mixture of differenced and cointegrated model specifications are warranted for econometric models of Mexican agricultural supplies and input demands. Test results are sensitive to choice of functional form and the set of regressors. For example, share equations should be estimated using differenced data, but output supply and input demand equations generally should not. Generalized Leontief and quadratic functional forms are preferred over the translog. Symmetry and curvature of a restricted profit function are rejected. Short-run output supplies and input demands are generally inelastic.
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Using the quadratic Box-Cox for flexible functional form selection and unconditional variance computation
Empirical Economics, 1994Co-Authors: Fermin S. Ornelas, C. Richard Shumway, Teofilo OzunaAbstract:A quadratic Box-Cox methodology is presented for choice of flexible functional form that includes consistent computation of variance estimates. Empirical viability of the procedure is investigated by specifying a dual profit function using highly aggregated U.S. agricultural data. Conditional and unconditional variance estimates for the parameters are compared and contrasted. Like-lihood ratio tests are utilized to discriminate among the Generalized Leontief, normalized quadratic, translog, and square-rooted quadratic functional forms. Statistical results indicate that the squarerooted quadratic is the preferred choice of functional form for these data, followed by the normalized quadratic.
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Multidimensional Evaluation of Flexible Functional Forms for Production Analysis
Journal of Agricultural and Applied Economics, 1993Co-Authors: Fermin S. Ornelas, C. Richard ShumwayAbstract:Several common flexible functional forms are evaluated for Texas agricultural production utilizing three procedures. Nested hypothesis tests indicate that the normalized quadratic is the marginally-preferred functional form followed by the Generalized Leontief. Predictive accuracy results are ambiguous between the Generalized Leontief and the normalized quadratic. Statistical performance favors the normalized quadratic. These two functional forms consistently dominate the
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Multiple-output production modeled with three functional forms
Journal of Agricultural and Resource Economics, 1992Co-Authors: Pedro A. Villezca-becerra, C. Richard ShumwayAbstract:Aggregate dual models are specified to examine multiple-output production relationships in each of four major, geographically dispersed, agricultural states (California, Iowa, Texas, and Florida). Three locally-flexible functional forms (translog, Generalized Leontief, and normalized quadratic) are employed to conduct analytic simplification tests, estimate systems of output supply and input demand equations consistent with nonrejected hypotheses, derive elasticities, and determine to what extent analytic simplification tests and policy-relevant results are sensitive to functional form and state. Important differences in empirical implications were found due both to functional form and geographic unit, but differences were greater for the latter