A Disaggregate Approach to Aggregate Supply

Analyses of aggregate supply response in low‐income countries are practically nonexistent because of the index number problems and the difficulty of accounting for the effect of weather inherent in aggregate approaches. The disaggregate model presented here includes variables measuring weather, external capital inputs and technology, as well as crop and input prices, in individual crop supply functions. A technique for combining the direct and cross elasticities into a single aggregate elasticity is given, and the results obtained using the technique are outlined.