Examination of alternative heteroscedastic error structures using experimental data Academic Article uri icon

abstract

  • Impacts of alternative specifications for heteroskedastic error structures are examined by estimating various production functions for corn in central Texas. Production- and profit- maximizing levels of inputs and the shape of the profit equation obtained from models not corrected for heteroscedasticity differed from those obtained from models corrected for heteroscedasticity. 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. -Authors

published proceedings

  • Journal of Agricultural and Applied Economics

author list (cited authors)

  • Mjelde, J. W., Capps, O., & Griffin, R. C.

complete list of authors

  • Mjelde, James W||Capps, Oral||Griffin, Ronald C

publication date

  • January 1, 1995 11:11 AM