eChapters

13.1 Meaning of Dummy Variables

In econometrics, particularly in regression analysis, a dummy variable is also known as “Indicator variable or Binary variable or qualitative variable”. It is one which takes the value (0 or 1) to indicate the absence or presence of some categorical effect that may be expressed to shift the outcome, e.g.

i) Literate (1) and Illiterate (0)

 ii) Male (1) and female (0)

iii) Farmers in a cross sectional data in terms of year with normal weather condition (1) and year with abnormal weather condition (0).

12.1 Introduction

There is no other pair of words except the pair “Multi-Collinearity” which is more misused both in “Econometric Texts” and in “Applied Literature”. In many practical problems, many of our explanatory variables are found to be highly correlated among themselves.

One of the assumptions of the “classical linear regression model (CLRM) is that there is no “Multicolinearity” among the regressor variables included in the regression model.

 

11.1 Introduction

The term “regression” literally means moving back towards the average. It was first introduced by the British biometrician Sir Francis Galton (1822-1911). in connection with the inheritance with the stature.

a) Definition

Regression analysis is a mathematical measure of the average relationship between two or more variables in terms of the original units of data.

In regression analysis, there are two types of variables. The variable whose value is influenced and is to be predicted, is known as the dependent (or predicted/ response explained) variable and the variable that influences the values of the dependent variable or is used for prediction purposes, is known as the independent (predictor/explanatory/ auxiliary/ regressor) variable.

10.1 Introduction

Least square theory is a statistical technique used to estimate the parameters involved in the regression model in such a way that the sum of squares of errors (residuals) is minimum (least). We have generally two methods of estimation of population parameters. These are (i) Ordinary least square (O.L.S.) method and (ii) Maximum likelihood (M.L.) method. The method of ordinary least square (O.L.S.) is used extensively in regression analysis primarily because it is intutively appealing and mathematically much simpler than the method of maximum likelihood estimation (M.L.E.). In the context of lineaer regression analysis, the two methods generally give similar results.

9.1 Introduction and Definition

Literally, econometrics means “Economic measurements”. Although measurement is an important part of econometrics, the scope of econometrics is much broader. Econometrics is an amalgam of economic theory, mathematical economics, economic statistics and mathematical statistics. It can also be stated that “Econometrics consists of the application of mathematical statistics to economic data to provide empirical support to the model constituted by mathematical economics and to obtain numerical results from such data.

8.1 Matrix

An arrangement of m×n elements into m rows and n columns is called a matrix. A matrix is a rectangular array of numbers usually represented by enclosing the array in brackets.

Order of a Matrix : The number of rows and columns is called the ‘dimension’ or ‘order’ of the matrix.

 

7.1 Introduction

The integral calculus is concerned with the opeartion of “integration” which is the reverse process of differentiation. If f '(x) represents the differential coefficient of f '(x), then the problem of integration is to find f(x) from f '(x).

7.2 Integration of a Function Containing a Constant

If we integrate a function containing a constant factor, this factor must also be a factor of final integral.

6.1 Introduction

Let

v : Represents the volume of a gas.

p : Represents the pressure of a gas.

t : Represents the absolute temperature.

The law is represented by the relation writen as t v k. p ? where k is a constant.

1. Suppose the temperature varies and pressure remains constant then

2. Suppose the pressure varies and temperature remains constant then

4.1 Introduction

There are some mathematical tools that are applicable in solving the mathematical problems related to the subject matter on “Economic Theory”. Differential calculus is one of those mathematical tools. Hence the useful theory of differential calculus will be discussed in this chapter.

4.2 Differentiation

The mathematical term “Differentiation” is involved in finding the rate at which a variable quantity changes.

In the theory of “Differential Calculus” we are concerned fundamentally with the “Rate of Variation” in a function y = f(x) with respect to the change in other variable (Independent Variable X) on which the dependent variable ‘Y’ depends through a relation Y = f(x).

3.1 Definition

 Let f (x) be the function of a random variable ‘x’. If there exists a number ' ' ?

 such that f(x) may be made as close to ' ' ? as we proceed to choose x close to

 a given number ‘k’, then we say that the limit of f(x) as x approaches to k, is ' ' ?

 and we write it symbolically as

 x k

 limf(x)

 ?

 ??

 Example 3.1 : We are giving some examples as below:

 Example 3.1.1 : A function f (x) may become infinite as x tends to a value ‘c’

 and we write that

 x c

 limf(x)

 ?

 ??

 Example 3.1.2 : Consider the function 1 f(x) x ? . Then we say that as x ??,

 f(x) tends to zero and write it as :

 x

 1 lim 0

2.1 Function

A variable ‘Y’ is said to be the function of an other variable ‘X’ if for every value of ‘X’ there exists a corresponding value of ‘Y’. It is denoted as Y = f (X). The function f (X) is a relationship between two variables (Y, X) which associates any given number x with another number y.

A function is a mapping or transformation of x into y and is denoted by y = f(x). The variable X represents the elements of the domain ‘D’ and is called the “independent variable”. The variable ‘Y’ represents the elements of the range ‘R’ and is known as the “dependent variable”.

Introduction

Agriculture forms the backbone of the Indian economy. Although there has been large industrialization in the last 60 years, agriculture still occupies the prominent place of importance (Banarsi Lal, 2019). The agriculture sector contributes about 20 per cent of GDP in India (MoF, 2020-21). Both the agriculture and livestock sectors provide employment to 52 per cent of the work force (Rathod and Dixit, 2019). In India, most of farmers have small average holdings. Agriculture marketing can play important role in increasing income of farmers with same landholding. Agriculture plays a vital role in India’s economy. 54.6 of the total workforces is engaged in agriculture and allied sector activities (Census 2011) and accounts for 18.8% (First Advance Estimates) of country’s Gross Value Added (GVA) for the year 2021-22 (at current prices). Agriculture sector needs structured and functional markets, preferably in the vicinity of farmers, to drive growth, employment, remunerative prices and economic prosperity in rural areas of the country.

Introduction

In rainfed region, the rain is the only source of water which is erratic with unprecedented frequent draughts affecting fruit production in these areas. In adequate, improper water and nutrient management that has lowers down the soil fertility of orchards, especially in rainfed areas. India has fairly good progress on the horticultural crops of the world and is today the second largest producer of fruits in the world, falling behind China. However, the productivity of these fruits is significantly low as compared to other fruit growing of the countries. This is mainly reason due to undulating topography, poor soil fertility status, deep and scare ground water level are the main characteristics of rainfed areas of Jammu region. Due to ever-increasing demand of food, fruit, fuel and fodder, cultivation has been extended to marginal and smalleroded lands. These marginal and small landholders of rainfed regions are not able to sustain arable crops in long run. In addition, the income generated from such a holding is inadequate to sustain the family. 

Introduction

ICT in agriculture is an emerging field focusing on the enhancement of agriculture and rural development. It involves applications of innovative ways to use ICT in rural domain. The advancement in ICT can be utilized for providing accurate, timely, relevant information and services to the farmers, thereby facilitating an environment for more remunerative agriculture. (Mahant et. al. 2012). Information and Communication Technology (ICT) in agriculture can act as a driving force in the development process. It facilitates marketing decisions, directs the competitive process and simplifies marketing mechanisms. Accuracy, Availability, Applicability and Analysis are the four ‘A’’s of marketing information; a farmer may decide how much to produce, when and where to sell and a trader may expand trade (Behera, 2015). Social media is the new upcoming area in agricultural marketing that has blogs, microblogs, pages, groups etc. It saves time and cost of the farmers for getting information. Facebook is the most likely social media for pages and profiles.

Mushrooms are regarded as a macro-fungus with a distinctive fruiting body which can be either epigeous or hypogeous and large enough to be seen with the naked eyes and to be picked by hand (Chang and Miles, 1992). Hundreds of identified species of mushrooms, since time immemorial, have made a significant global contribution to human food and medicine (Marshall and Nair, 2009). Mushrooms have been a part of the human diet and used as both food and medicine for centuries and their importance is well established in many spheres of human life as well as ecosystem functions. They are known to produce enough amount of protein rich quality food which is of high biological value and appropriate for all age groups. Edible mushrooms are recognized not only as delicacy but also as food in human diet. They are consumed not only for their innate ation and taste but also for their important nutritional value. 

The major mountain ranges in India are the Himalayas and the Western Ghats. The mountain ecosystem is spread over two Union Territories of India: Jammu and Kashmir, Ladakh and eleven states Himachal Pradesh, Uttaranchal, Sikkim, Assam, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Tripura and West Bengal. The hill agriculture has its own unique characteristics and that the growth potential of hill agriculture has remained under-exploited due to various mountain specifities like poor marketing and processing infrastructure, undulating topography, lack of system specific technologies, land degradation, soil erosion, soil acidity and loss of soil fertility. Hill agriculture has several niche areas having comparative advantage for better exploitation of resources and for better trade. Organic farming still remains a viable option for export of specialised commodities especially fruits and vegetables.

Introduction

“If agriculture goes wrong, nothing else will have a chance to go right in the country”,these words by Dr MS Swaminathan known as the ‘Father of Green Revolution’ in India, itself highlights the importance of agriculture and its allied sectors in Indian economy. India is an agrarian nation with about 140 million farmers and net sown area equals to 42.4% of the total geographical area. Its agriculture sector has always played and will continue to play a major role in its economic growth. As per the First Advance Estimates of National Income, 2021-22 released by National Statistical Office (NSO), Ministry of Statistics & ProgrammeImplementation, the contribution of agriculture and its allied sectors stand at approximately 18.8 % of India’s Gross Value Added (GVA) at current prices during 2021-22, depicting a growth of 3.9%.In addition, agriculture is also the largest employment generating sector in India as approximately 55% of the total workforce is engaged in agriculture and its allied sector activities. It is the main source of income security of rural households in India. Since ancient times, agriculture and livestock keeping are complementary professions that rural households have undertaken for their survival.

Introduction

Agriculture is India is mostly production oriented restricted in huge number of uneven small holdings and plays a key role in the Indian economy. Cultivation of fruits and vegetables has emerged as profitable venture and it is not only providing nutritional security but also provides a substantial employment to rural people as well as open the door for export. India is the second largest producer of vegetables, next only to China, in the world with a production of 40 million tonnes from four million hectares of land area. In India, vegetables are grown in an area 1, 10, 65 thousand hectares with the production of 1, 99,882 thousand metric tonnes. Uttar Pradesh is the largest producer of vegetable production in the country (14.80 %) followed by West Bengal (14.12 %), Madhya Pradesh (10.30%), Bihar (8.88 %), Maharashtra (8.39 %), Gujarat (7.84 %), Odisha (4.76 %) and Karnataka (4.05 %) (NHB, 2021).

Introduction

Cherry (PrunusaviumL.) is considered as one of the most important temperate deciduous fruit and is the season’s first tree fruit to reach the market. Cherries are rich in protein, vitamins, and minerals and have more calories than apple. Most of the present day cherry cultivars are of European origin. The annual world production as of 2012-13 of cultivated cherry fruit is about 2.5 million tonnes. Around 40 per cent of the world production originates from Europe and 13 per cent in the United States. The other important global players during 2012-13 were Turkey (4,80,740 MT), United States (3, 84,646 MT), Iran (200,000 MT) and Italy (1, 04,766 MT) (FAO, 2012). Important sweet cherry cultivars include Bing, Brooks, Tulare, King, Sweetheart, Rainier etc.

Introduction

Agricultural extension has been developing from past more than 100 years. The term was first used by Universities of Cambridge and Oxford, in the year 1867. Chinese people have been following extension approximately from past 2000 years. There are four generations of agricultural extension in Asia: colonial, diverse top-down, unified top-down and diverse bottom-up extension. Communication takes place mainly in two ways in extension system: paternalism versus participation and persuasion versus education, which aims to change behaviour of rural people. Many approaches have emerged in extension which includes ICT based extension.