Jyoti Rao
Agricultural supply response: A survey
abstract paper surveys literature agricultural supply response prices developing countries empirical estimates elasticities depend methodology adopted country specific factors relating technology economic structure macro constraints paper seeks establish general conclusions supply responsiveness within limitations supply response output prices aggregate crop levels considered first cropspecific acreage elasticities range zero 08 short run longrun elasticities tend higherbetween 03 12 yield elasticities smaller less stable acreage elasticities clearly intercrop pricing relied upon effect shifts commodity composition agricultural output evidence also suggests supply elasticities vary systematically factors price yield risks multiplecropping importance crop farm incomes farm size tenancy literacy controversial important aspect supply response effect aggregate agricultural output agricultures terms trade conventional timeseries estimates range 01 03 major crosscountry study reports aggregate elasticity high 166 argued crosscountry estimates apt exaggerate aggregate responsiveness timeseries studies underestimate somewhat ldcs tentative range 04 05 seems plausible hence distributive effects terms trade likely significant allocative effects asian evidence shows third intercountry differences fertilizer use attributed fertilizer price policies provided new technologies infrastructure place fertilizer subsidies help technology diffusion overcoming credit constraints choice price supports input subsidies depend variety country situationspecific factors nevertheless significant general factor favoring price supports easily coupled price stabilization goals input subsidies though sparse available evidence response marketed surplus suggests price policy reliable instrument regulating intersectoral trade