Survey Existence Financial Restrictions and Its Effects on Potato Production of Kurdistan Province Using Lewbel\'s Indirect Production Function

Survey Existence Financial Restrictions and Its Effects on Potato Production of Kurdistan Province Using Lewbel's Indirect Production Function

E. Pishbahar , S. E. Kohnehpooshi , J. Hosseinzad , S. Abedi
Received: 27 Aug 2015 Accepted: 12 Apr 2016
Abstract
One of the problems expressed by agricultural producers is budget restrictions and limited financial resources that could be an influential factor on non-use of economically optimal level inputs. Due to the Potato is one of the important products and the Kurdistan province is one of the major province producers of this product, therefore, this study survey the effect of budget restrictions and their impact on potato production in Kurdistan province. In this context, the approach of indirect production function with Lewbel functional form was used as a generalized functional form of two the Translog functional form and Almost Ideal Supply System. For this purpose, the data of price and quantity of the inputs and the output of potatoes was used during 1991-2011. The results showed that the Lagrange multiplier for the product is greater than one that this indicates the existence of budget restrictions in the production of potato.

JEL Classification: A10, B21, D20, N50, N65

Keywords:
Kurdistan, Lewbel Indirect Production Function, Potato, Budget Restrictions