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An analysis of marketed surplus response of cereals in Haryana State of India

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  • S.K. Goyal

    (Department of Business Management, CCS Haryana Agricultural University, Hisar 125 004, India. E-mail: goyalsk@hau.nic.in)

  • Ernst Berg

    (Department of Farm Management, University of Bonn, Meckenheimer Allee 174, 53115 Bonn, Germany. E-mail: E.Berg@uni-bonn.de)

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    Abstract

    This report uses a model that considers the effect of both factor and output prices on marketed surplus. To derive input demand and output supply elasticities, the normalized quadratic profit function and demand equations were estimated jointly with the seemingly unrelated regressions (SUR) estimation technique using farm level panel data. The data confirm the theoretical framework. The derived price elasticities of input demand, output supply, and marketed surplus have been simulated to examine alternative price policies for securing different levels of marketed surplus. At the observed price structure, the marketed surplus of wheat will increase almost equal to population growth, but in case of paddy it will grow at a very low rate. The study further reveals that besides price adjustment, technological improvement and non-price factors are also of critical importance for increasing output supply and, hence, marketed surplus. [EconLit citations: Q120, C330.] © 2004 Wiley Periodicals, Inc. Agribusiness 20: 253-268, 2004.

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    Bibliographic Info

    Article provided by John Wiley & Sons, Ltd. in its journal Agribusiness.

    Volume (Year): 20 (2004)
    Issue (Month): 3 ()
    Pages: 253-268

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    Handle: RePEc:wly:agribz:v:20:y:2004:i:3:p:253-268

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    Web page: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1520-6297

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    1. Lau, Lawrence J., 1978. "Applications of Profit Functions," Histoy of Economic Thought Chapters, McMaster University Archive for the History of Economic Thought, in: Fuss, Melvyn & McFadden, Daniel (ed.), Production Economics: A Dual Approach to Theory and Applications, volume 1, chapter 3 McMaster University Archive for the History of Economic Thought.
    2. John Freebairn & Bill Griffiths, 2006. "Introduction," The Economic Record, The Economic Society of Australia, The Economic Society of Australia, vol. 82(s1), pages S1-S1, 09.
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