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Price Incentives, Nonprice factors, and Crop Supply Response: The Indian Cash Crops

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Sunil Kanwar ()

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Abstract

Agriculture as a source of growth was sorely neglected in the early development strategies of the currently developing countries. Realisation of this shortcoming prompted public policy in these countries to encourage agriculture by various means. The success of these policies depends, however, on how farmers respond to the incentives provided. Using panel data pertaining to Indian agriculture for the period 1967-68/1999-00, covering 7 major 'annual' cash crops cultivated across 16 major states, an estimateof area, yield and output elasticities w.r.t price and nonprice variables are provided. [CDE WP No. 132].

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Paper provided by esocialsciences.com in its series Working Papers with number id:1180.

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Date of creation: 2007
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Handle: RePEc:ess:wpaper:id:1180

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Keywords: agriculture; price; cash crops; Indian; policies; area; yield; output elasticities; farmers; non prices; developing countries;

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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. Holt, Matthew T., 1999. "A Linear Approximate Acreage Allocation Model," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 24(02), December. [Downloadable!]
  3. Rosegrant, Mark W. & Kasryno, Faisal & Perez, Nicostrato D., 1998. "Output response to prices and public investment in agriculture: Indonesian food crops," Journal of Development Economics, Elsevier, vol. 55(2), pages 333-352, April. [Downloadable!] (restricted)
  4. Chavas, Jean-Paul & Holt, Matthew T, 1996. "Economic Behavior under Uncertainty: A Joint Analysis of Risk Preferences and Technology," The Review of Economics and Statistics, MIT Press, vol. 78(2), pages 329-35, May. [Downloadable!] (restricted)
  5. Barten, Anton P. & Vanloot, Chris, 1996. "Price dynamics in agriculture: An exercise in historical econometrics," Economic Modelling, Elsevier, vol. 13(3), pages 315-331, July. [Downloadable!] (restricted)
  6. Key, Nigel & Sadoulet, Elisabeth & de Janvry, Alain, 2000. " Transactions Costs and Agricultural Household Supply Response," American Journal of Agricultural Economics, American Agricultural Economics Association, vol. 82(2), pages 245-59, May. [Downloadable!] (restricted)
  7. Nerlove, Marc & Fornari, Ilaria, 1998. "Quasi-rational expectations, an alternative to fully rational expectations: An application to US beef cattle supply," Journal of Econometrics, Elsevier, vol. 83(1-2), pages 129-161. [Downloadable!] (restricted)
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