Estimation of a production function for companion animal veterinarians in Western Pennsylvania.

摘要

This study focuses upon the Companion Animal Veterinarian. Objectives: (1) to collect data and analyze it so as to describe the technology appropriate for an econometric model of production. (2) to examine the empirical evidence on returns to scale and the rates of substitution between factors.; For the purpose of statistical estimation, the translog and the Cobb-Douglas forms of the production function were used. Regression equations were estimated using ordinary least squares. The variables analyzed in the study were the veterinarian's rate of output, two types of labor inputs, veterinary and nonveterinary labor input, and capital.; Only three of the estimated coefficients were statically significant. The product elasticity of capital was not significantly different as the number of veterinarians per practice increased, and was elastic. The product elasticity of veterinary labor as well as staff labor was inelastic. All of the practices had values which would indicate some small increasing returns to scale.; The analysis showed that veterinary staff and veterinarians were compliments. Capital and staff complementarity is present in all practice sizes. The substitutability between veterinary labor and capital is smaller than that between the veterinary labor and staff labor.; The marginal rate of technical substitution between capital and both types of labor was relatively small, while the marginal rate of technical substitution between veterinary and staff labor was relatively higher.; The Cobb-Douglas production function with constant returns to scale produced results that adequately described the technology of the companion animal veterinary practice. Coefficients of the relevant variables were significant at the 1 percent level. The R-square of 0.918 is high indicating a good fit of the regression equation. The marginal product of capital was relatively lower than both the marginal products of veterinary labor and staff labor. Output elasticity of capital is.387, output elasticity of staff labor is.387, that of veterinary labor is.187.; Results showed that the Cobb-Douglas production function gave better results. This could be due in part to the number of observations in the sample. The translog production gives better results when analyzing large size sample. (Abstract shortened with permission of author.)