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Supply Responsiveness Of Rice Farmers In Laguna, Philippines

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  • J.C. Flinn
  • Kaliappa P. Kalirajan
  • Linda L. Castillo

Abstract

The supply response and input demand by farmers using modern rice technology in Laguna, Philippines were estimated using profit function analysis. The results indicate that farmers do maximise short-term profits and respond to price changes efficiently. The supply elasticity of rice with respect to its own price was approximately unity. Changes in real wages were estimated to have a greater impact on rice profit and supplies than changes in the real prices of mechanised land preparation, fertiliser or pesticides. Production elasticities derived from the profit function were consistent with those estimated directly from the underlying production function.
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Suggested Citation

  • J.C. Flinn & Kaliappa P. Kalirajan & Linda L. Castillo, 1982. "Supply Responsiveness Of Rice Farmers In Laguna, Philippines," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 26(1), pages 39-48, April.
    • Handle: RePEc:bla:ajarec:v:26:y:1982:i:1:p:39-48
    DOI: j.1467-8489.1982.tb00407.x
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    1. John L. Dillon & J. R. Anderson, 1971. "Allocative Efficiency, Traditional Agriculture, and Risk," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 53(1), pages 26-32.
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    3. Lawrence J. Lau & Pan A. Yotopoulos, 1972. "Profit, Supply, and Factor Demand Functions," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 54(1), pages 11-18.
    4. Byron, R P, 1970. "The Restricted Aitken Estimation of Sets of Demand Relations," Econometrica, Econometric Society, vol. 38(6), pages 816-830, November.
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    Cited by:

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    2. Minot, Nicholas & Balie, Jean & Valera, Harold Glenn A., 2021. "Prioritizing yield-increasing crop research for poverty impact: An application of microsimulation in the Philippines," 2021 Annual Meeting, August 1-3, Austin, Texas 313976, Agricultural and Applied Economics Association.
    3. John C. Quiggin & Anh Bui‐Lan, 1984. "The Use Of Cross‐Sectional Estimates Of Profit Functions For Tests Of Relative Efficiency: A Critical Review," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 28(1), pages 44-55, April.
    4. Faye, Issa & Deininger, Klaus W., 2005. "Do new delivery systems improve extension access? Evidence from rural Uganda," 2005 Annual meeting, July 24-27, Providence, RI 19405, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    5. Bingxin Yu & Shenggen Fan, 2011. "Rice production response in Cambodia," Agricultural Economics, International Association of Agricultural Economists, vol. 42(3), pages 437-450, May.
    6. Kivanda, Lena & Fox, Glenn, 1993. "Falsification and the Practice of Agricultural Production Economists: A Methodological Assessment," Department of Agricultural Economics and Business 258724, University of Guelph.
    7. Suleiman Abrar & Oliver Morrissey & Tony Rayner, 2004. "Aggregate agricultural supply response in Ethiopia: a farm-level analysis," Journal of International Development, John Wiley & Sons, Ltd., vol. 16(4), pages 605-620.

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