Estimates of Farm Output Supply and Input Demand Elasticities: The Translog Profit Function Approach

Muhammad Ali Chaudhary, Mushtaq Ahmad Khan, Kaukab Hassan Naqvi

Abstract


The importance of estimating valid elasticities of farm output
supply and input demand can hardly be overemphasised. Reliable estimates
of these elasticities are sine qua non for predicting accurately the
farmer responsiveness to changes in inputoutput prices and government
taxes and thereby for formulating successful agricultural incentive
programmes consistent with national requirements of food, development
and exports. In fact, robust estimates of the coefficients of such
elasticities can serve as a solid basis in determining effective policy
relevant interventions for promoting production, equity, efficiency, and
finally egalitarian income distribution in the farm sector ofthe
economy.

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DOI: https://doi.org/10.30541/v37i4IIpp.1031-1050

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