Hi, I am trying to find good empirical estimates for some fixed parameters of a quadratic production function.
My equation is Y = a1L+a2I+a3W+a4F+a5T-a11L^2-a22I^2-a33W^2-a44F^2-a55T^2
where L is labor, I equipment, W water, F fertiliser, T temperature.
I am trying to find estimates for a1, a2,a3 a4, etc...any idea?
Dear Rippo,
You should be able to estimate the function using normal OLS. As long as your parameters are linear, regardless of the degree on the variables this approach would work.
Best,
FMT
Dear Ruggiero Rippo,
There are a variety of methods used to estimate the proposed model. Actually, the data ll guide you to the method of estimation to be used.
Best wishes,
Hi Ruggiero,
The estimation here will be surely inconsistent!
As long as you have climate variables, your analysis should be in terms of risk effects. I suggest to use Just-Pope spcification.
Best regards and Good luck
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