ESTIMATION OF INPUT DEMAND AND SUPPLY FUNCTIONS FOR WHEAT IN IRAN AGRICULTURE

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REZAI B.; TORKAMAANI J.

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Journal: Journal of Agricultural Economics and Development Year:2000 | Volume:8 | Issue:3 (31) Page(s): 87-114

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Title

ESTIMATION OF INPUT DEMAND AND SUPPLY FUNCTIONS FOR WHEAT IN IRAN AGRICULTURE

Author(s)

REZAI B. | TORKAMAANI J. | Issue Writer Certificate

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Abstract

The main objectives of this study were to estimate the profit and supply functions of wheat production in Iran. Also, demand functions of various inputs, including labor, seeds and fertilizers were estimated and effects of factors such as price of fertilizers and seeds, wage rate, acreage, average of annual rainfall, investment in machinery were investigated. Finally, all own and cross elasticities of wheat supply and input demands were estimated and evaluated. Time series data covering period of 1971 to 1996 were gathered from the Ministry of Agriculture and it's various publications. An extension of model suggested by Sidhu and Baanate (1981) was developed and used in the analysis of profit and supply functions of Iranian wheat production and also inputs demand functions. The results indicated that, except average of annual rainfall, other variables were well- behaved according to the economic theories and also with the assumptions of the current study. The incompatibility of the rainfall results was minding due to aggregation of statistics used for this variable. Results of estimating input demand elasticities showed the inverse relationship between prices of inputs and their quantities. Also, input demand cross elasticities suggested a weak complementary relationship between various inputs. Furthermore, supply price elasticity with respect to wheat price was positive but less than one. Therefore, wheat farmers don't show a significant response to price change in wheat production.

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APA: Copy

REZAI, B., & TORKAMAANI, J.. (2000). ESTIMATION OF INPUT DEMAND AND SUPPLY FUNCTIONS FOR WHEAT IN IRAN AGRICULTURE. EQTESAD-E KESHAVARZI VA TOWSE'E, 8(3 (31)), 87-114. SID. https://sid.ir/paper/24223/en

Vancouver: Copy

REZAI B., TORKAMAANI J.. ESTIMATION OF INPUT DEMAND AND SUPPLY FUNCTIONS FOR WHEAT IN IRAN AGRICULTURE. EQTESAD-E KESHAVARZI VA TOWSE'E[Internet]. 2000;8(3 (31)):87-114. Available from: https://sid.ir/paper/24223/en

IEEE: Copy

B. REZAI, and J. TORKAMAANI, “ESTIMATION OF INPUT DEMAND AND SUPPLY FUNCTIONS FOR WHEAT IN IRAN AGRICULTURE,” EQTESAD-E KESHAVARZI VA TOWSE'E, vol. 8, no. 3 (31), pp. 87–114, 2000, [Online]. Available: https://sid.ir/paper/24223/en

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