Test of Profit-Maximisation Hypothesis in Indian Agriculture: A Linear Programming Exercise

Madhusudan Ghosh
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Madhusudan Ghosh: Visva-Bharati, Santiniketan

Indian Economic Review, 1990, vol. 25, issue 2, 259-270

Abstract: Linear programming technique has been used to undertake tests for profit maximisation hypothesis in a predominantly rice producing agricultural economy. The study is based on Farm Management survey (FMS) data pertaining to Hoogly district of West Bengal for the year 1972-73. Results of the study reject the validity of profit maximisation hypothesis. They also contradict findings of the earlier research pertaining to the question of relative economic efficiency of small and large farms.

Date: 1990
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