economics of on-farm development - Institute for Social and ...

variables from the model. The variables used in the model are specific to the
characteristics <strong>of</strong> the irrigation commands and farm holdings covered under the
study. The important variables selected for analysis include holding size. age <strong>of</strong>
the farmer, occupational status, status <strong>of</strong> availability <strong>of</strong> family labour and the
potential area that could be brought under irrigation with certain level <strong>of</strong>
investment on OFD. The models used for analysis with respect to each project
differ in terms <strong>of</strong> explanatory variables, keeping expenditure on OFD as the
dependent variable in each case. The functional form used in the analysis is:
n
Z = a + L/3,X 1 + 5,
,=1
Where,
Z = Expenditure on OFD
Xi = i th explanatory variables
Pi = i th regression coefficients
a = Constant
El = Error terms
The above functional form as well as the explanatory variables may be expressed
with respect to the Peechi and Kallada irrigation projects as shown below.
Determinants <strong>of</strong> OFD: the Peechi Irrigation Project
The analytical model examining the determinants <strong>of</strong> OFO in the case <strong>of</strong> Peechi
project may be expressed as:
Where:
Xl =
X 2 =
X) =
ON =
DXs=
E .
GWEXT (Extent <strong>of</strong> groundwater recharge in meters)
PUMPCAP (Capacity <strong>of</strong> pumpset in HP)
DRYSHARE (Percentage <strong>of</strong> dry area to be irrigated)
OCSTATUS (Occ.status = I if agriculture; 0 otherwise)
FAMLAB (Family labour = I if available; 0 otherwise)
= Error term.
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