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Rice Technology, Farmer Rationality, and Agricultural Policy in Egypt
Author(s) -
Antle John M.,
Aitah Ali S.
Publication year - 1983
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 - 10.2307/1240454
Subject(s) - economics , subsidy , agriculture , agricultural economics , economic shortage , fertilizer , rationality , agricultural policy , government (linguistics) , natural resource economics , market economy , ecology , linguistics , philosophy , chemistry , organic chemistry , political science , law , biology
Abstract Estimates of a homothetic translog cost function show that Egyptian rice farmers are economically rational and responsive to input price changes. Own‐price and cross‐price elasticities of input demand based on the cost function estimates provide insight into policies currently being pursued or considered by the Egyptian government. The analysis indicates a reduction in fertilizer trade restrictions could substantially reduce fertilizer prices and increase fertilizer use. Labor and mechanical power are not strong substitutes, indicating that subsidization of machinery is not an appropriate policy to reduce agricultural labor shortages.