An Econometric analysis of production functions of Tea, Tamulbari Tea Estate, Lahowal, Dibrugarh, Assam

In this paper an attempt has been made to model production function for Tea production of Tamaulbari Tea Estate. For this data on the variables-production of Tea, capital and labour invested are collected for sixteen years. Cobb-Douglas production function and linear production functions are modelled and constant returns to scale are tested. Also, for the goodness of fit, R² the coefficient of determination is computed for both the models and a comparison have been made using Gujrati’s method (1970). It is found that both the models are found to be satisfactory as evidenced by the coefficient of determination and significant regression coefficients. Log linear model has found to be better models compared to linear model as evidenced by the transformed coefficient of determination.