A cost function analysis of wheat production in India
研究了印度发达、半发达和欠发达地区机械化与非机械化农场的成本函数，估计了规模弹性并划分最优与次优农场，讨论了基于平均成本的收购价格问题。
In this study, two types of cost functions that capture the heterogeneity of farms are estimated for the mechanised and the non-mechanised farm groups of Ferozepur (Punjab), Muzaffarnagar (West U.P.) and Deoria (East U.P.) which represent ‘developed’, ‘semi-developed’ and ‘underdeveloped’ regions in India, respectively. In one type of cost function, the scale elasticity varies stochastically with output; in the other, it varies only randomly across sample farms. Based on the estimates of scale elasticity, the sample farms are classified into the categories of ‘optimal’ and ‘sub-optimal’ farms, and their characteristics are discussed. Lastly, the problem of fixing support/procurement prices on the basis of average cost of production is briefly discussed.