Price and Non-Price Factors Effects on Wheat Cultivation Acreage in Provinces by Using Panel Data

Document Type : Research Paper

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Abstract

Wheat is important crop in Iran with 52.2 percent of the acreage in field crops at country. Wheat acreage is the most important component in supplier reaction to price changes. Therefore، any change in wheat acreage would change wheat supply and have irreparable consequences for the country's economy. This study used the Nerlove basic model with panel data and adaptive expectation to investigate affecting price and non-price factors on wheat acreage in all provinces of Iran. Result indicated that the acreage of wheat with a lag has important effect on the wheat acreage. Government price support policy is not effective on wheat acreage alone. Because، on one hand، there is a little orientation between these two variables and on the other hand، to a large extent، it depends on government policies at alternative products such as barley.

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