Supply elasticity of major crops in Jammu region: An Engle-granger Co-integrating approach

A study was undertaken to analyze the supply response of crop sector and its implications on consumption using co integration approach incorporate with Nerlovian partial adjustment model for the period 1981-82 to 2010-11 based on secondary data. Since the study used yearly time series data, thus the unit root test has been done by ADF test for concluding about the stationary of data and the order of integration. The result of ADF test indicates that all the series are stationary after first order difference. Engle-Granger con-integration test was conducted to test the existence of long-run equilibrium among the variables of the rice output response function. The results showed that the coefficients of lagged production was negative for rice and maize while as positive for wheat, bajra and barley. Coefficient for price was negative for all the crops except maize. Likewise coefficient for lagged production was positive for rice, wheat and bajra and negative for maize and barley.