EXAMINATION OF ALTERNATIVE HETEROSCEDASTIC ERROR STRUCTURES USING EXPERIMENTAL DATA

Impacts of alternative specifications for heteroscedastic error structures are examined by estimating various production functions for corn in Central Texas. Production- and profit- maximizing levels of input and the shape of the profit equation obtained from models not corrected for heteroscedasticity differed from those obtained from models corroded for heteroscedasticaity. Using the profit-maximizing input levels for each production function gave essentially the same estimated yield and profit, regardless of the specification for heteroscedasticity employed. Differences of up to one-quarter to one-third are noted, however, in the amount of profit-maximizing levels of input used, depending on the heteroscedasticity correction.


Issue Date:
1995-07
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/15329
Published in:
Journal of Agricultural and Applied Economics, Volume 27, Number 1
Page range:
197-211
Total Pages:
15




 Record created 2017-04-01, last modified 2017-08-22

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