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Price and Output Response of Marketed Surplus of Foodgrains: A Cross‐Sectional Study of Some North Indian Villages
Author(s) -
Bardhan Kalpana
Publication year - 1970
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/1238162
Subject(s) - economics , elasticity (physics) , price elasticity of demand , cross elasticity of demand , price elasticity of supply , production (economics) , economic surplus , income elasticity of demand , regression analysis , agricultural economics , econometrics , microeconomics , mathematics , statistics , market economy , materials science , welfare , composite material
If foodgrains producers are also the major consumers, price elasticity of production and price elasticity of marketed surplus should be distinguished. While the former is likely to be positive, the latter may theoretically assume either sign, and this introduces a complication in deriving the long‐run price elasticity of marketed surplus. Village‐level, cross‐sectional data are used to get a direct regression estimate of the short‐run price elasticity of marketed surplus for northwest India. The estimate seems to indicate negative elasticity. Other variables with statistically significant influence on marketed surplus are production level of foodgrains and income from milk.