Analysis of Pattern Inputs Demands of Corn Production in Mahidasht Plain of Kermanshah

Document Type : Research Paper

Authors

• saber kalhori
• mohammadreza kohansal

Department of Agricultural Economics, Faculty of Agriculture, Ferdowsi University of Mashhad

10.30495/jae.2022.23798.2118

Abstract

The demand function enables the analysis of the effects of the price changes of each input on the amount of demand of the other inputs. In this study, to estimate the demand function of corn inputs in 2017-18, an almost ideal supply system was used by cross-sectional data for 150 farmers in Mahidasht plain of Kermanshah. The results indicated that own-price elasticities of compensated demand are negative for all inputs. Based on the absolute values of the own-price elasticities, demands all inputs are realized to be inelastic. The cross elasticities coefficients revealed complementary relationships between irrigation water and seed and irrigation water and machinery, and the substitutionary relationship between labor and machinery The Allen and Morishima elasticity coefficients showed that machinery and seed are strongly substitutes for seed and labor . Based on the calculated cost elasticities, use of irrigation water and machinery are deeply dependent to the level of spending on corn productioncredits.

Keywords

• Almost Ideal Supply System
• Allen and Morishima elasticity
• corn
• Mahidasht Plain

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