ABSTRACT
The main objective of this chapter is to provide improved estimates of a cross section production function for four major crops grown in Andhra Pradesh, India. The unit of observation is a district and we exploit both cross section and time series data. There are several motives underlying our investigation. It proceeds with the assumption that cross section data, with the district serving as the unit of observation, are more likely to reveal the long run relationship whereas time series data for districts are more likely to reveal the short run relationship. The inclusion of rainfall variable is justified by treating it as an indicator of availability of water in water scarce agriculture. Structural change ordinarily comes through changes in behavioural parameters, changes in technique relations and changes in the institutional set up. The policy suggestions for planning from above are important to Indian planners.
