Does Acreage Response underestimate Farm Supply Response?

This book gives an account of supply response for major crops during pre and post reform periods using Nerlovian adjustment cum adaptive expectation model. Estimation is based on dynamic panel data approach using pooled cross section - time series data across states for India for the period 1980-81 to 2004-2005. The significant feature of the specification used in the study is both main and substitutable crops are jointly estimated by a single set of equations and by introducing varying slope coefficients to capture different responses. The analysis is a useful additional contribution to the existing empirical literature in supply response.