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Journal of Applied Sciences
  Year: 2011 | Volume: 11 | Issue: 12 | Page No.: 2226-2231
DOI: 10.3923/jas.2011.2226.2231
 
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Supply Response of Cereals in Iran: An Auto-Regressive Distributed Lag Approach

S.M. Fahimifard and M.S. Sabouni

Abstract:
Supply response to commodity price is a core issue of agricultural economics. This study quantifies the responsiveness of Iranian producers of wheat, barley and corn to incentives using an Auto-Regressive Distributed Lag (ARDL) approach. This method simultaneously estimates the long-run and short-run patterns and removes the resulted problems of variables elimination and autocorrelation. It is found that: Firstly, there is insignificant long-run and short-run guaranteed own price elasticity for all crop types. Secondly, 1% increase in yield risk will decrease the wheat, barley and corn's planted area 5.92, 4.98 and 6.09%, respectively. Finally, the wheat and barley planters supply response to 1% increase in amount of rain in millimeters during the early months of the season is 4.76 and 3.79%, respectively.
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How to cite this article:

S.M. Fahimifard and M.S. Sabouni, 2011. Supply Response of Cereals in Iran: An Auto-Regressive Distributed Lag Approach. Journal of Applied Sciences, 11: 2226-2231.

DOI: 10.3923/jas.2011.2226.2231

URL: https://scialert.net/abstract/?doi=jas.2011.2226.2231

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