Effects of agricultural subsidies on farm household decisions: a separable household model approach

• DOI: 10.3389/fsufs.2023.1295704
• Publication Date: 2023-12-05T05:08:00Z
• Authors: Priyanka Lal; B. S. Chandel; Rahul Kumar Tiwari; Mohamed A. El-Sheikh; Sheikh Mansoor; Alok Kumar; Gyanendra Singh; Milan Kumar Lal; Ravinder Kumar
• Keywords: Consumption

Introduction This study employs a separable household model to estimate the effect of agricultural subsidies on production and consumption decisions taken by farm households. The used data from survey using pre-tested schedule develop calibrate an model. Method First, we calculated price index for was higher non-agricultural commodity groups in all categories Expenditure more than groups. Result Discussion Results indicated that group, estimated coefficients linear expenditure system (LES) were positive less one except wage-price coefficient which found be negative. estimates profit function area depict variable inputs negatively related fixed positively profit. Our highlights few crucial points – removal will decrease demand electricity, concentrate irrigation 80, 73 70 %, respectively. Second, removing not only affect but also lead decline both commodities. Third, this prominent small medium