An Econometric Study of the Demand for Fertilizers in Pakistan

Mahmood Ayub
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Mahmood Ayub: Yale University

The Pakistan Development Review, 1975, vol. 14, issue 1, 135-141

Abstract: An empirical study of the demand for fertilizers in Pakistan is important for at least two reasons. First, we can identify the various factors responsible for the determination of demand. This will obviously depend to a large extent on the arguments we include in the demand function and the mathematical specification of the model. Nevertheless, one can obtain a rough idea of the importance of the various factors in the total demand for fertilizers. Second, a study of the demand side will enable us to obtain some estimates of the price elasticity of demand. Knowledge of price elasticity is extremely essential from the government policy point of view because the sale of fertilizers in Pakistan has been subsidized, and it is, therefore, essential to know the degree of responsiveness of fertilizer demand to price changes.

Date: 1975
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