Determinants of area allocation for groundnut in Dharwad district of Karnataka state: a simultaneous equation approach

Formulation and implementation of suitable policies are crucial to achieve agricultural development, among the other factors. Response functions are better estimated with the help of simultaneous equation approach as compared to the single equation approach, when there exists a two-way causation between dependent and independent variables. The results highlighted the crucial role played by price and non-price factors in the area allocation of groundnut crop, providing useful information for policy proposals.