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Estimation of price elasticities using the agricultural household model in NWFP, Pakistan


, : Estimation of price elasticities using the agricultural household model in NWFP, Pakistan. Sarhad Journal of Agriculture 9(2): 125-137

The objective of this paper is to test the hypothesis that households' consumption and production decisions are made jointly in Pakistan. Models are used in policy making that derive appropriate price elasticities for production and consumption needs including labour supply. This study highlights the fact that price elasticities are vastly different when joint decision making processes are not accounted for compared to those based on agricultural household models.

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