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Test of Profit-Maximisation Hypothesis in Indian Agriculture: A Linear Programming Exercise

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  • Madhusudan Ghosh

    (Visva-Bharati, Santiniketan)

Abstract

Linear programming technique has been used to undertake tests for profit maximisation hypothesis in a predominantly rice producing agricultural economy. The study is based on Farm Management survey (FMS) data pertaining to Hoogly district of West Bengal for the year 1972-73. Results of the study reject the validity of profit maximisation hypothesis. They also contradict findings of the earlier research pertaining to the question of relative economic efficiency of small and large farms.

Suggested Citation

  • Madhusudan Ghosh, 1990. "Test of Profit-Maximisation Hypothesis in Indian Agriculture: A Linear Programming Exercise," Indian Economic Review, Department of Economics, Delhi School of Economics, vol. 25(2), pages 259-270, July.
    • Handle: RePEc:dse:indecr:v:25:y:1990:i:2:p:259-270
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    Cited by:

    1. Dorward, P. T. & Shepherd, D. D. & Wolmer, W. L., 1997. "Developing farm management type methods for participatory needs assessment," Agricultural Systems, Elsevier, vol. 55(2), pages 239-256, October.

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