Analysis of Wheat Crop Cost Structure Using Translog Function

Message:
Abstract:
The current study attempted to investigate the mathematical sturcuture of cost function of irrigated wheat crop in Kurdistan province. The methodolgy is based on duality assumption. The sample size is 257 farmers for the agricultural year 2011-2012.data was collected byinterviewwith farmers and writing writerQuestionnaire.The multistage cluster random sampling used. The results showed that, the tarnslog cost function selected as the best model acorcding to collected data and structural assumptions such as constant return to scale, hemogenity, technological hemotetic were not statistical significant. Land allocated the most cost to itselfrecpectively. And again Allen elasticities of substitution except for labor with poison and water with fertilizer, all are subsititute. The amount of own price elasticity which is less than one,indicating inelastic demand of all input. In case of return to scale the results showed that, there is increasing return to scale for irrigated wheat farms in the study area.
Language:
Persian
Published:
Journal of Development Economics and Planning, Volume:2 Issue: 1, 2013
Page:
85
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