Spillman Production Function (Agro Economics)

 ● Spillman P.F

This function suggested by Spillman can be considered in the form of the following expression:

Y = [M - (A ×R ^ x)]

where, x = level of output

              Y = resulting output

              M = maximum ouput that can be                              attained

              A = Total increase in output due to x

              R = ratio of successive units of input                       to total output

A maximum product is never reached and decreasing total product is not allowed.

As can be easily checked, the Spillman P.F is characterized by the positive but decreasing marginal returns and when very input but "x" is constant.

The elementary transformation show that the isoquant of the Spillman P.F is linear.

Spillman was interested in determining whether or not the law of diminishing returns had empirical support within some rather basic agricultural production processes.

The Spillman P.F has seldom been used by agricultural economists. It's primarily of historical interest because the Spillman research represented one of the first efforts to estimate parameters of production function for some basic agricultural processes.

This is all about brief concept on Spillman P.F.

Thank You

Aditya Pokhrel

MBA, MA Economics, MPA