Assignment01-2010

# Assignment01-2010 - \documentclasscfw_article...

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\documentclass{article} \ \title{Cotton Production Function with Weather Stress} \author{Charles B. Moss} \date{\today} \ \begin{document} \ \maketitle \ To start your analysis, download the datasets from each website. Table ~\ref{tab:tab01} 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 s \begin{array}{c} \displaystyle y = \alpha_0 + \alpha_1 N + \alpha_2 P + \alpha_3 + A_{11} N*N + A_{12} N*P + \\ \displaystyle A_{13} N*K + A_{22} P*P + A_{23} P*K + A_{33} K*K + \beta_1 PSD1 + \beta_2 PSD2 \end{array} \label{eqn:eq01} \ \noindent where $N$ is the level of Nitrogen (in pounds per acre), $P$ is the level of Phosphorous, $K$ is the level of Potash (i.e., Potasium), $PSD1$ is the sum of the Palmer Drought Severity Index for May, June, and July, and $PSD2$ is the Palmer Drought Severity Index for August and September. The results for the regression in Equation ~\ref{eqn:eq01} are presented in Table ~\ref{tab:tab02}. E Following these steps \begin{itemize} \item[1.] Estimate your production function. \begin{itemize} \item[a.] Is this specification appropriate? Do the levels of drought interact with the input decisions? Will this effect the risk decision? \item[b.] Could you modify this specification to allow for the interaction

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## This note was uploaded on 07/15/2011 for the course AEB 6182 taught by Professor Weldon during the Fall '08 term at University of Florida.

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Assignment01-2010 - \documentclasscfw_article...

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