Q1 Introduction: Farm Production
In this homework assignment, you will use farm-level production data from maize farms in the Mexican state of Michoacan to estimate output elasticities of land and labor. The dataset contains 86 observations on output, land, and labor for each of two years (1983 and 1989).
Download the data set ARE106_HW3_maize.Rdata from Canvas and load it (and attach it) in RStudio using the following commands (make sure the data are in the working directory, or provide a path to the directory in which the data are stored):
load(“ARE106_HW3_maize.Rdata”) attach(D)
The variables in the dataset are:
1. year : Year (1983 or 1989)
2. Q : Maize production (Q) in metric tons
3. K : Land (K) Input in Hectares
4. L : Labor Input in Person-Days
For this homework assignment, you will need to load (and install if you haven’t already) the following packages: