THE TRANSITION OF PUNJAB AGRICULTURE - A CHOICE OF TECHNIQUE APPROACH

The introduction of modern crop varieties in Punjab, India, led to rap id income growth. Adoption rate and level of the new varieties is exam ined using a choice-of-technique approach, in which techniques of prod uction are identified by crop variety, season of growth, and method of production. Modeling the dynamic effects of technology, resource avai lability, and incentives reveals a consistent picture of the transitio n process. The results show the importance of incentives and availabil ity of quasi-fixed inputs such as irrigation, fertilizers, and roads. By the late 1970s, the long-run aggregate supply elasticity was betwee n 1.3-1.5.