Supply Response in Pakistan with "Endogenous" Technology (Agricultural Development) (Report‪)‬

I. INTRODUCTION Considering the significance of agriculture sector in Pakistan's economy, one of the major objectives of agricultural policy has been to raise the level of real income of the farmer by stabilising the agricultural output through a system of price support programme. In the recent past, a number of studies have confirmed that Pakistani farmers respond to changes in output prices. (1) The prime objective of these studies was to estimate price, acreage or yield elasticities based on the Nerlovian Adjustment Model under alternative expectation schemes. Naqvi and Burney (1992) estimated output supply and input demand functions based on the profit function approach. (2)