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Unformatted text preview: Cotton Production Function with Weather Stress Charles B. Moss August 29, 2010 To start your analysis, download the datasets from each website. Table 1 presents the dataset for cotton production in Alabama. Notice that there are several holes in the dataset. As a starting point we will consider only the complete cases or those observations where data is available for each of the inputs (the dataset for the Palmer Drought Severity Index is complete). The next step is to estimate a quadratic produciton function y = + 1 N + 2 P + 3 + A 11 N * N + A 12 N * P + A 13 N * K + A 22 P * P + A 23 P * K + A 33 K * K + 1 PSD 1 + 2 PSD 2 (1) where N is the level of Nitrogen (in pounds per acre), P is the level of Phos- phorous, K is the level of Potash (i.e., Potasium), PSD 1 is the sum of the Palmer Drought Severity Index for May, June, and July, and PSD 2 is the Palmer Drought Severity Index for August and September. The results for the regression in Equation 1 are presented in Table 2....
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- Fall '08