Revision of the Nerlovian partial adjustment framework and its application to sorghum production in Nigeria

An attempt was made in this paper to show how varying coefficients of adjustment might be incorporated into the Nerlovian partial adjustment framework and the resulting model applied to sorghum production in Nigeria. The nonlinear forms of the model were estimated with quasi-Newton iteration technique while the linear forms were estimated with regress. The estimated coefficients conform to theoretical expectations and were appropriately signed but with few exceptions. In addition, varying elasticity of supply was also obtained. The distribution of the adjustment coefficient and the elasticity were significantly different from zero.