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Measuring The Supply Response Function Of Tobacco In Zimbabwe

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Author Info
Leaver, Rosemary
Abstract

This paper presents an estimate of the price elasticity of supply for tobacco output in Zimbabwe using an adapted Nerlovian model. The results indicate a short-run elasticity of +0.34 and a long-run elasticity of +0.81, suggesting that tobacco farmers are highly unresponsive to price changes. These estimates are similar to those obtained for tobacco in supply response studies conducted in other developing African countries.

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Publisher Info
Paper provided by Agricultural Economic Association of South Africa (AEASA) in its series 2003 Annual Conference, October 2-3, 2003, Pretoria, South Africa with number 19079.

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Date of creation: 2003
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Handle: RePEc:ags:aeassa:19079

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Web page: http://www.aeasa.org.za/
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Keywords: Demand and Price Analysis; Research Methods/ Statistical Methods;

References listed on IDEAS
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  1. Marc Nerlove, 1979. "The Dynamics of Supply: Retrospect and Prospect," Discussion Papers 394, Northwestern University, Center for Mathematical Studies in Economics and Management Science. [Downloadable!]
  2. Mamingi, Nlandu, 1997. "The impact of prices and macroeconomic policies on agricultural supply: a synthesis of available results," Agricultural Economics, Blackwell, vol. 16(1), pages 17-34, March. [Downloadable!] (restricted)
  3. Askari, Hossein & Cummings, John Thomas, 1977. "Estimating Agricultural Supply Response with the Nerlove Model: A Survey," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 18(2), pages 257-92, June. [Downloadable!] (restricted)
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