HECTARAGE RESPONSE TO PRICE AND YIELD FOR SUGARCANE IN KENYA - AN ECONOMETRIC STUDY

This study identifies the factors responsible for hectarage allocation to sugarcane in Kenya and estimates the short-run and long-run elasti cities of sugarcane hectarage with respect to some exogenous variables . Time series data that covered the period of 1962-1992 were used for the study. The analysis was performed using Nerlove's Partial Adjustme nt Model. The results of the study indicate that the significant varia bles influencing sugarcane hectarage are cane and maize producer price s and yield of cane. The short-run elasticity was highest for the prod ucer price of cane with respect to sugarcane hectarages which was esti mated to be 0.45. Also, the results of the study showed that only 19 p ercent of the desired change was as a result of changes in the exogeno us variables.