Agricultural Economics Research Review
Year : 1990, Volume : 3, Issue : 1and2
First page : ( 8) Last page : ( 19)
Print ISSN : 0971-3441.

Application of frish's methodology in deriv1ng direct and cross price elasticities of demand for foodgrains in different regions of Andhra Pradesh

Krishnaiah J.¹, Krishnamoorthy S.²

¹ Department of Agricultural Economics, College of Agriculture, Rajendranagar, Hyderabad.

² Department of Agricultural Economics, Agricultral College and Research Institute, Coimbatore.

The authors are greateful to Dr. R. Radhakrishna, Director of Centre for Economic and Social Studies and Dr. K.N. Murthy, Reader, Dept. of Economics, University of Hyderabad for helpful comments.

Abstract

Using Frish's methodology and time series and cross section data the study derived direct and cross price elasticities of demand for foodgrains in different regions of Andhra Pradesh. The expenditure elasticities indicated that the commodities are mostly normal. The expenditure elasticity coefficients were higher in rural areas as compared to urban areas. Among regions, Coastal Andhra had lower elasticity coefficients compared to other regions. It was observed that people were more sensitive to changes in the prices of rice compared to other items, particularly in Coastal Andhra Pradesh. The study assumes significance in the light of the emphasis on regional planning.

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