Using the Transcendental Function to Estimate Potato Production Function in the state of El Oued in Algeria for a Year 2018

Abstract

Although common use of logarithmic and linear function form in previous studies to estimate production functions and their statistical relative efficiency in fitting data, in most cases they fail to reconcile hypotheses of marginal analysis of the logic of economic theory to rationalize product behavior. To solve this problem we have estimated in this paper the function of producing potatoes in the El-oued for the fall 2018 season, using the form of the Transcendent function and the method of ordinary least squares through cross-sectional data collected for 110 agricultural products chosen randomly. the results of this study have shown that Transcendent function is More efficient statistically relative to the logarithmic function and the linear function, by using the residual distribution and the R squared tests, which confirmed that the transcendent function whose has the property variable elasticity of technical substitution as the most appropriate model for study in fitting regress the production quantity on production factors, in addition to the advantage of this function in reconciling the marginal economic behavioral hypotheses between the quantity Potato as a dependent variable and production factors as interpreted variables