An analysis of price and output behavior in the Indian economy: 1951–1973

Ahluwalia, Isher Judge

doi:10.1016/0304-3878(79)90022-1

Cited by 16 publications

(4 citation statements)

References 6 publications

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“…Haessel used Bardhan's data and obtained a short-run marketed surplus elasticity ranging between 2.7 and 3.3. Haessel's findings have in turn been contradicted by Ahluwalia (1979), who constructed a macroeconomic model and found a negative marketed surplus response in the short to medium run. Rao (1989) surveyed the marketed surplus literature up to 1975 (i.e.…”

Section: Own-consumption and The Marketed Surplusmentioning

confidence: 78%

Perverse supply response in peasant agriculture: A review

Ozanne

1999

Oxford Development Studies

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The long-running debate concerning the special characteristics of peasant production in less developed countries which may lead to perverse supply responses in their agricultural sectors is explored. Four stages in the debate are identified. The first was based on casual observation and the target income or fixity-of-wants hypothesis. The second took account of peasant own-consumption and focused on the marketed surplus. The third addressed the possible effect of uncertainty and risk aversion on supply response. The fourth is embodied in modern farm household models of peasant behaviour. Although the predictions regarding supply response derived from these models vary, they all suggest that agricultural supply response may be negative. The bulk of empirical evidence, however, for both total production and marketed surplus tends to refute the notion, whether it is theoretically consistent or not, that supply response in peasant agriculture is negative.

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Section: Own-consumption and The Marketed Surplusmentioning

confidence: 78%

Perverse supply response in peasant agriculture: A review

Ozanne

1999

Oxford Development Studies

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“…Working with an econometric model of India, Ahluwalia (1980) made wages a function of expected inflation and labour productivity, rather than the relative tightness of the labour market. Also in the Indian context, Horowitz (1973-4) suggested that the direction of the causality relationship between wages and productivity could be the opposite one: namely that employers could be prepared to pay higher-than-market wage rates as a form of investment in human capital.…”

Section: The Phillips Curve In the Developing Worldmentioning

confidence: 99%

Wages, Unemployment and Expectations in Developing Countries: The Labour Market and the Augmented Phillips Curve for Chile

Hojman

1983

Journal of Economic Studies

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Conventional and alternative versions of the augmented Phillips curve are tested for Chile for the period 1974–1979. All regressors are significant. The alternative formulation and rationally formed expectations provide the best fit, with the minimum wage indexation and conventional curve results suggesting the presence of non‐wage inflationary pressures in addition to wage ones. Forecasting is made possible by deriving the relationship between real wages and the unemployment rate, and combinations of moderate‐to‐substantial real wage increases and unemployment reductions were feasible, over the medium term, under the policies and economic conditions prevailing up to mid‐1979.

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“…Haessel's results obtained for village-level data were recently contradicted by a macro-econometric model in which the foodgrains marketed surplus and food prices were simultaneously determined along with many other variables relating to the agricultural and manufacturing sectors (Ahluwalia, 1979). Marketed surplus of foodgrains was specified to be a function of foodgrains output, current and lagged, and of foodgrain prices and income from commercial crops, both expressed in terms of the price of manufactures.…”

Section: Marketed Surplusmentioning

confidence: 99%

Agricultural supply response: A survey

Rao¹

1989

Agricultural Economics

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Rao, J.M., 1989. Agricultural supply response: a survey. Agric. Econ., 3: 1-22.This paper surveys the literature on agricultural supply response to prices in developing countries. Empirical estimates of elasticities depend both on the methodology adopted and on countryspecific factors relating to technology, economic structure and macro constraints. The paper seeks to establish some general conclusions on supply responsiveness within these limitations. Supply response to output prices at the aggregate and at the crop levels is considered first. Crop-specific acreage elasticities range between zero and 0.8 in the short run while long-run elasticities tend to be higher -between 0.3 and 1.2. Yield elasticities are smaller and less stable than acreage elasticities. Clearly, inter-crop pricing can be relied upon to effect shifts in the commodity composition of agricultural output. Evidence also suggests that supply elasticities vary systematically with such factors as price and yield risks, multiple-cropping, the importance of the crop, farm incomes, farm size, tenancy and literacy. The most controversial and important aspect of supply response is the effect on aggregate agricultural output of agriculture's terms of trade. Conventional time-series estimates range from 0.1 to 0.3. A major cross-country study reports an aggregate elasticity as high as 1.66. It is argued that cross-country estimates are apt to exaggerate aggregate responsiveness while time-series studies underestimate it somewhat. For LDCs, a tentative range of 0.4 to 0.5 seems plausible. Hence, the distributive effects of the terms of trade are likely to be more significant than the allocative effects. Asian evidence shows that only a third of the inter-country differences in fertilizer use can be attributed to fertilizer price policies. Provided new technologies and infrastructure are in place, fertilizer subsidies can help in technology diffusion and in overcoming credit constraints. The choice between price supports and input subsidies will depend on a variety of country-or situation-specific factors. Nevertheless, a significant general factor favoring price supports is that they can more easily be coupled with price stabilization goals than input subsidies. Though sparse, the available evidence on the response of marketed surplus suggests that price policy is not a reliable instrument for regulating inter-sectoral trade. . Economic incentives and supply responseThe importance of agricultural price policies in economic development derives from three key characteristics of agriculture: (a) it is the dominant production and employment sector in LDCs, particularly at low levels of devel-0169-5150/89/$03.50

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An analysis of price and output behavior in the Indian economy: 1951–1973

Cited by 16 publications

References 6 publications

Perverse supply response in peasant agriculture: A review

Perverse supply response in peasant agriculture: A review

Wages, Unemployment and Expectations in Developing Countries: The Labour Market and the Augmented Phillips Curve for Chile

Agricultural supply response: A survey

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