Economical behavior analysis of agricultural companies in Iraq using translog cost function

Other Title(s)

تحليل السلوك الاقتصادي للشركات الزراعية في العراق باستخدام دالة التكاليف المتسامية

Joint Authors

Ali, Iskandar Husayn
al-Jabburi, Zaynah Ahmad Ghazi

Source

The Iraqi Journal of Agricultural Science

Issue

Vol. 50, Issue (s) (31 Dec. 2019), pp.92-100, 9 p.

Publisher

University of Baghdad College of Agriculture

Publication Date

2019-12-31

Country of Publication

Iraq

No. of Pages

9

Main Subjects

Economy and Commerce
Agriculture

Topics

Abstract EN

This research aims to identify the productive relationship nature among the elements used in the agricultural companies by estimating the translog cost function.

It also aims to recognize the possibility of substituting these elements with each other, to identify the nature of revenues, and economies scale through elasticity of other cost.

This research goes further to define the typical use of resources, identify the performance of the companies and their contribution in controlling their cost, and estimating elasticity of substitution (Allen-Uzawa), (Morishima).

The translog cost function was estimated so as the total cost of the agricultural companies is a function of the prices of production and production quantity output elements.

The shares of production elements (labor, capital, commodity and services requisites) were derived from this translog cost function by using SUR method and Eviews9 after applying symmetry and homogeneity.

It was clear, in the translog cost function or in the production elements share functions, that there is a strong correlation between the prices of the production elements and the total costs.

If prices increase, their contribution share in the total costs increases.

Calculation were made among production elements, the self demand, cross, and substitution elasticity.

Results show that the self demand was ( 0.64،2.01 ، 0.02،2.28).

This result clarifies the share of the production elements (labor, capital, commodity and services requisites) in the total costs of the agricultural companies.

The results show that increasing in the wage of labor, capital prices, and commodity and services requisites with 1% had led to increase in the demand on labor, capital prices, and commodity and services requisites with ( 0.64%, 2.10%, 0.02%, and 2.28% ) respectively.

The elasticity (Allen – Uzawa) of partial substitution between the labor and capital was 0.0009.

This indicates that increasing the capital price value to the labor wage with rate of 1% will decrease the capital element rate to the labor wage with 0.0009%.

This is a very low rate.

The elasticity of partial substitution (Morishima) for the elements of production shares was (2.1, 0.02, 2.27, and 0.06).

American Psychological Association (APA)

al-Jabburi, Zaynah Ahmad Ghazi& Ali, Iskandar Husayn. 2019. Economical behavior analysis of agricultural companies in Iraq using translog cost function. The Iraqi Journal of Agricultural Science،Vol. 50, no. (s), pp.92-100.
https://search.emarefa.net/detail/BIM-893048

Modern Language Association (MLA)

al-Jabburi, Zaynah Ahmad Ghazi& Ali, Iskandar Husayn. Economical behavior analysis of agricultural companies in Iraq using translog cost function. The Iraqi Journal of Agricultural Science Vol. 50, Special Issue (2019), pp.92-100.
https://search.emarefa.net/detail/BIM-893048

American Medical Association (AMA)

al-Jabburi, Zaynah Ahmad Ghazi& Ali, Iskandar Husayn. Economical behavior analysis of agricultural companies in Iraq using translog cost function. The Iraqi Journal of Agricultural Science. 2019. Vol. 50, no. (s), pp.92-100.
https://search.emarefa.net/detail/BIM-893048

Data Type

Journal Articles

Language

English

Notes

Includes bibliographical references : p. 100

Record ID

BIM-893048