USING REGRESSION ANALYSIS TO REDUCE AGGREGATION BIAS IN LINEAR PROGRAMMING SUPPLY MODELS

Because methods of eliminating aggregation bias are impracticable, an alternative method is suggested for reducing aggregation bias which uses regression estimates of farm resonrce availabilities as functions of farm size. The estimates are incorporated in a parametric run of the LP problem in which size is parameterized. The method is applied to a case study problem, and the results compared with other methods of demarcating representative farms.Research Methods/ Statistical Methods,