LOJK10267U  Applied Production Analysis

Volume 2013/2014
Education
MSc Programme in Agricultural Economics
Content
This is an applied course that focusses on practical and empirical applications based on microeconomic production theory.

The course will cover, for instance, following topics:
  • advanced primal microeconomic production theory
  • econometric production analysis based on primal approaches in microeconomic theory, interpretation of estimation results, further analysis based on estimation results
  • dual approaches in microeconomic production theory: cost minimization and cost function, profit maximization and profit function
  • econometric production analysis based on dual approaches in microeconomic theory, interpretation of estimation results, further analysis based on estimation results
  • functional forms in applied production analysis such as Cobb-Douglas, Translog, etc.
  • efficiency analysis using, e.g., Stochastic Frontier Analysis (SFA)

The free statistical software "R" is used for the empirical calculations. For students new to "R" an introduction to the relevant parts of "R" is given. Introductions to relevant "R" packages are given in the classroom exercises.
Learning Outcome
The primary objective of the course is to provide the students with relevant knowledge, practical skills, and competences in empirical microeconomic production analysis so that they are able to analyze production technologies and producer behaviour with appropriate econometric methods.

Knowledge about production technologies and producer behaviour is important for politicians, managers, business organizations, government administrations, financial institutions, the EU, and other national and international organizations who desire to know how contemplated or implemented policies and market conditions (e.g. world market prices) can affect production, prices, income, and resource utilization in agriculture as well as in other industries. The same knowledge is relevant for consulting single firms that want to compare themselves with other firms and the "best practice", whilst taking into account the uncertainty in the data and in the results. The participants of this course will obtain relevant qualifications in econometric production analysis so that they can contribute to the knowledge about production technologies and producer behaviour. Knowledge of production economical facts is also of importance in economic consultancy for farmers.

After completing the course the students should be able to: 


Knowledge:
  • Describe the primal and dual approaches in microeconomic production theory, particularly production functions, cost minimization and cost functions, profit maximization and profit functions
  • Describe procedures in econometric production analysis based on primal and dual approaches in microeconomic theory
  • Describe approaches for efficiency analysis
  • Describe how the assumptions of the various approaches influence the results

Skills:
  • Apply econometric production analysis and efficiency analysis using real data
  • Interpret the results of econometric production analyses and efficiency analyses
  • Choose a relevant approach for econometric production and efficiency analysis
  • Evaluate approaches for econometric production and efficiency analysis

Competences:
  • Use econometric production analysis and efficiency analysis to investigate various real-world questions
  • Critically evaluate the appropriateness of a specific econometric production analysis or efficiency analysis for analysing a specific real-world question
  • Chambers, RG (1988): Applied Production Analysis -- A Dual Approach, Cambridge University Press
  • Material provided by the teacher
Students need knowledge and competences in basic microeconomic production theory and applied econometrics in order to successfully participate in this course. These competences can be obtained, for instance, by attending courses LOJB10259 (Mikroøkonomi), LOJF10262 (Produktionsøkonomi), and LOJK10272 (Applied Econometrics).
The course is based on problem-based learning, dialogue teaching, and practical and empirical exercises. Microeconomic production theory is presented in lectures. To facilitate students' learning, lectures are followed by group-based exercises. These exercises are partly conducted in the classroom under guidance of the teacher and partly conducted as homework assignments. Most of the exercises are done on a pc.
Credit
7,5 ECTS
Type of assessment
Oral examination, 30 min. preparation + 30 min. oral exam
Students will be asked to present their solution to one randomly selected homework assignment and to solve one randomly selected exercise. Furthermore, they are expected to answer questions regarding other topics of the course.
Aid
Only certain aids allowed
Students will get their solution to the selected homework assignment, no other aid allowed.
Marking scale
7-point grading scale
Censorship form
No external censorship
The oral examination and the assessment are conducted by the teacher and one internal censor.
Criteria for exam assesment
The participants will get the grade "12" if they have fully achieved the intended learning outcome.
  • Category
  • Hours
  • Lectures
  • 36
  • Theory exercises
  • 16
  • Practical exercises
  • 36
  • Project work
  • 60
  • Preparation
  • 57
  • Exam
  • 1
  • Total
  • 206