Do Indian farmers maximise profits?
- 1 October 1980
- journal article
- research article
- Published by Taylor & Francis in The Journal of Development Studies
- Vol. 17 (1) , 48-61
- https://doi.org/10.1080/00220388008421780
Abstract
The aim of this paper is to test the hypothesis that Indian farmers maximise profits under neo‐classical competitive conditions. We use a restricted profit function model (using duality theory) which gives us a set of equations that can be estimated subject to the restrictions imposed by neo‐classical economic theory. Using Farm Management Studies data from the Thanjavur district of Tamil Nadu (India) for 1969/70 we test the model. Our results reject the model conclusively. We conclude the paper with a discussion of the possible reasons for the rejection of the model.Keywords
This publication has 1 reference indexed in Scilit:
- Estimating Agricultural Supply Response with the Nerlove Model: A SurveyInternational Economic Review, 1977