Econometric Model Applied to Coffee Cutivation for Making Decisions

Abstract

Econometric models were applied to study the physical-economic effect of four manageable variables and nonmanageable one on coffee crop yield. Manageable variables measured were cultural practices, cultivation age, pests and diseases, and population percentage, while the nonmamnageable variable was rainfall. An econometric model including the above five variables –considered essential by experts- was elaborated to measured each variable impact on production and income growth. Results demonstrated that all variables increased yield; however, cultural practices showed a significant association with a progressive effect even concerning the highest incomes. Priorities were established for the allocation of current scarce labor and financial resources in order to achieve better results than those accomplished in the past in other places or in the same place.