ESTIMATION OF TRANSLOG COST FUNCTION OF BARLEY PRODUCTION IN WASIT
Mesopotamia Journal of Agriculture,
2018, Volume 46, Issue 2, Pages 1-6
AbstractModel of translogy cost function does not pulling restrictions on elasticities of substitution and creating the model of declining total cost, the search applied on sample of farmers of barley crop which consists of 130 farmer distributing on 16 branch of wasit province the another used SUR method via using Evewis program to estimate the relation between total costs and prices of inputs and output, we found that strong relation between them in all functions through magnitude of R2 which was (0.73, 0.53, 0.93 )of function of translog costs and functions of labor and capital participation respectively . when we difrishiashing demand on labor factor from function of participation of labor wages in costs, we found that own – price demand elasticity of labor was (-0.88), while cross elasticity between labor and capital was (-0.16) that is mean increasing in labor wage by (1%) will decrease demand, capital by (0.16%), and that confirm the compliantary relation between two factors. paratial of substitution elasticity of Allen – Uzawa between capital and labor was (-1.4), while partial substitution elasticity of morishima between labor and capital was (-0.19) and that indicates that there is no shortage in demand of labor of there is increasing in price of capital .the study estimate efficiency of cost also via using frontier 4.1 program it was (0.61). the study recommended that nessisty of increasing the technical and knowledge level which helping to increase efficiency of products and decreasing costs.
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