The issue of agricultural supply response to price and non-price factors has been widely studied in the literature. However, there are lots of contradictions in the results. Past findings showed that aggregate agriculture production was not responsive to price factor in the long run [15] [17]. This fact is strongly pronounced in the studies considering the case of South Asian countries [5] [7] [10] [18] [22]. Contrary to South Asian cases, the study conducted on aggregate supply elasticity for Sub-Saharan Africa found that estimated supply elasticity to price factors is positive and appears to have a substantial welfare cost due to discrimination against agriculture [23]. See detail in fowlling link...... http://www.docstoc.com/docs/16008054/The-effect-of-price-and-non-price-factors-on-agricultural-production-in-Nepal--A-cointegration-analysis