Table 2 Estimated Elasticities of Agricultural Labor and Land Demand
Model 1:
Longer-run |
Model 2:
Shorter-run |
|||
Elasticity of: |
Labor |
Land |
Labor |
Land |
With respect to: |
Demand |
Demand |
Demand |
Demand |
| Land use | 0.82 |
- |
0.82 |
- |
| Labor use | - |
- |
- |
0.53 |
| Agricultural wage | -0.62 |
-0.16 |
-0.39 |
- |
| Agricultural prices | 0.44 |
0.17 |
0.29 |
0.01 |
| Non-agricultural prices | -0.79 |
-0.20 |
-0.53 |
-0.28 |
| Fertilizer price | 0.28 |
0.12 |
0.11 |
0.11 |
| Irrigated area | 0.15 |
-0.04 |
0.18 |
-0.09 |
| Agricultural machinery | 0.01 |
0.21 |
-0.18 |
0.20 |
| Non-agricultural investment | -0.26 |
-0.07 |
-0.14 |
-0.08 |
| Labor supply | 1.14 |
0.29 |
0.57 |
0.30 |
| Time trend | 0.01 |
-0.01 |
0.03 |
-0.02 |
Source: 3SLS estimates reported in Coxhead and Jiraporn (1998).