Journal of Applied Science Studies - Ozean Publications
Journal of Applied Science Studies - Ozean Publications
Journal of Applied Science Studies - Ozean Publications
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<strong>Ozean</strong> <strong>Journal</strong> <strong>of</strong> <strong>Applied</strong> <strong>Science</strong>s 1(1), 2008<br />
x 1 = Quantity <strong>of</strong> seeds (kg/ha)<br />
x 2 = quantity <strong>of</strong> labour in man-days/ha<br />
x 3 = Quantity <strong>of</strong> fertilizer used (kg/ha)<br />
a = intercept (constant term)<br />
b 1 – b 3 = regression coefficients<br />
e = error term<br />
The regression coefficients derived with observation in logarithms, are the elasticities <strong>of</strong> the individual resources.<br />
Their sum indicates the nature <strong>of</strong> returns to scale.With the sum being equal to 1, a given percentage increase in input<br />
results in proportional increase in percentage <strong>of</strong> output.With elasticity sums being more or less than one, implies that<br />
output will increase by a greater or smaller percentage respectively, than inputs.<br />
Estimation <strong>of</strong> Resource Use Efficiency<br />
The efficiency <strong>of</strong> resource use in the production <strong>of</strong> garlic was determined. The marginal value product (MVP) <strong>of</strong> the<br />
resources employed in garlic production was estimated by multiplying the marginal physical product (MPP) by the<br />
unit price <strong>of</strong> the output (Y).<br />
That is MVPxi = MPPxi.Py<br />
Where<br />
MVPxi = marginal value product <strong>of</strong> ith input<br />
MPP = marginal physical product <strong>of</strong> the ith input<br />
PY = price <strong>of</strong> unit output<br />
The marginal value product (MVP) was divided by the cost <strong>of</strong> one unit <strong>of</strong> the (marginal factor cost) to make<br />
influence on resource use efficiency in order to make the relative efficiency <strong>of</strong> resource use the following ratio was<br />
computed:<br />
Where<br />
R = efficiency ratio<br />
MVP = marginal value product<br />
MFC = marginal factor cost<br />
If r = 1 resource is efficiently used<br />
r > 1 resource is over utilized<br />
r < 1 resources is under-utilized<br />
For the semi-log equation used, the expression for estimating MPP was expressed as:<br />
MPPxi =<br />
MPPxi = marginal physical product <strong>of</strong> input xi<br />
bi = the estimated regression coefficient <strong>of</strong> input xi<br />
xi = mean value <strong>of</strong> input being considered<br />
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