Estimation of acreage response of major crops in haryana using co-integration approach

The present study is an attempt to estimate the acreage response functions for major crops in Haryana within the framework of co integration and error correction model and to compare the short-run and long-run supply elasticities of major crops. The long-run acreage response to lagged price was positive and significant in the case of rice, rapeseedmustard and sugarcane with elasticity values 0.19, 0.22 and 0.29, respectively. In case of other crops except bajra and gram, very low positive but non-significant price elasticities have been observed. In the short-run, lagged price elasticities were found to be positive for all the crops.