Estimating Crop-Specific Production Function in Iran Agriculture: A Generalized Maximum Entropy Approach

Document Type : Research Paper

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Abstract

One of the important problems in economic is estimating a production function.but one of the problems associated with the estimation of production function is that crop-specific input levels are generally not available. The purpose of this study is to estimate the input allocation in crops during 1375-84 in Iran. Using the general maximum Entropy approach.When there aren’t any information about parameters and can’t be estimated by standard techniques this method can solve this problem. In this study this method has been used to estimate of each crop production function at Province level, while the shre of land is available for each crop at Province, but the share of other inputs are only available at province level. The results present the input elasticities have changed over time and in the grain crops machinery input elasticity in 1379 and 1380 is fix. The average share of inputs per crops level in during 1375-1384 shows that the share of labor input in grain crops level and machinery input in cereals level are maximum.

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