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Effects of technological progress on consumers’ and producers’ welfare: a case study for Pakistan Punjab


  • Arifullah, Shahnaz A.
  • Önal, Hayri
  • Chishti, Anwar F.


While there is no dearth of regression analyses or linear programming models reviewing the agricultural performance of Pakistan, hardly any study has used a price endogenous mathematical programming model to simulate the ex ante effects of new policies on consumers and producers simultaneously. Responding to this need this paper simulates the crop sector of Pakistan considering price-quantity interrelationships. In its present form, the model is restricted to the Pakistan Punjab which successfully replicates the observed cropping pattern in the base year (2006). The model assumes an aggregate representative farmer who allocates the resources in such a way that the optimal quantities supplied at market prices are consistent with the farm-gate demands at those prices. The model is then solved by altering the yield and cost parameters from India’s Punjab, to analyze the new market equilibrium that would occur in the crops sector of Pakistan Punjab under a technologically enhanced agricultural system.

Suggested Citation

  • Arifullah, Shahnaz A. & Önal, Hayri & Chishti, Anwar F., 0. "Effects of technological progress on consumers’ and producers’ welfare: a case study for Pakistan Punjab," Quarterly Journal of International Agriculture, Humboldt-Universität zu Berlin, vol. 49.
  • Handle: RePEc:ags:qjiage:155552

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    References listed on IDEAS

    1. Spreen, Thomas H., 2006. "Price Endogenous Mathematical Programming Models and Trade Analysis," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 38(02), August.
    2. Jonasson, Lars & Apland, Jeffrey, 1997. "Frontier Technology and Inefficiencies in Programming Sector Models: An Application to Swedish Agriculture," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 24(1), pages 109-131.
    3. Derek Byerlee, 1992. "Technical change, productivity, and sustainability in irrigated cropping systems of South Asia: Emerging issues in the post‐green revolution Era," Journal of International Development, John Wiley & Sons, Ltd., vol. 4(5), pages 477-496, September.
    4. T. Takayama & G. G. Judge, 1964. "An Interregional Activity Analysis Model for the Agricultural Sector," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 46(2), pages 349-365.
    5. Horner, G.L. & Corman, J. & Howitt, R.E. & Carter, C.A. & MacGregor, R.J., 1992. "The Canadian Regional Agriculture Model Structure, Operation and Development," Papers 1-92, Gouvernement du Canada - Agriculture Canada.
    6. Gotsch, Carl H. & Falcon, Walter P., 1975. "The Green Revolution and the Economics of Punjab Agriculture," Food Research Institute Studies, Stanford University, Food Research Institute, issue 01.
    7. Mubarik Ali & Abedullah, 1998. "Supply, Demand, and Policy Environment for Pulses in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 37(1), pages 35-52.
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    More about this item


    price endogenous; sector model; historical mixes; Pakistan; Agricultural and Food Policy; Consumer/Household Economics; Research and Development/Tech Change/Emerging Technologies; C61; Q11; Q18;

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy


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