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A Cost Function Analysis of Wheat Production in India

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  • Paul, Satya

Abstract

Two types of cost functions that capture the heterogeneity of farms are estimated for the mechanized and the nonmechanized farm groups of farmers in India, representative for "developed," "semi-developed," and "underdeveloped" regions in India. In one type of cost function, the scale elasticity varies stochastically with output; in the other, it varies only randomly across sample farms. Based on the estimates of scale elasticity, the sample farms are classified into the categories of "optimal" and "sub-optimal" farms. Lastly, the problem of fixing support/procurement prices on the basis of average cost of production is briefly discussed. Copyright 1987 by Oxford University Press.

Suggested Citation

  • Paul, Satya, 1987. "A Cost Function Analysis of Wheat Production in India," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 14(2), pages 221-238.
    • Handle: RePEc:oup:erevae:v:14:y:1987:i:2:p:221-38
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    Cited by:

    1. Rana, Jaber & Kamruzzaman, M. & Hosain Oliver, Moinul & Akhi, Kaynath, 2021. "Financial and factors demand analysis of solar powered irrigation system in Boro rice production: A case study in Meherpur district of Bangladesh," Renewable Energy, Elsevier, vol. 167(C), pages 433-439.

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