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Extra resources for Agricultural Household Modelling and Family Economics

Sample text

Lopez R. , 1984, Estimating Labour Supply and Production Decisions of selfEmployed Farm Producers. , 1986, Structural Economic Review, 24, pp. 61-82. Models of the Farm Household that Allow for Interdependent Utility and Profit-Maximisation Decisions. , op. cit. Measurement of Implicit Prices of Family Labour in Agriculture. /21 Nakajima C , 1969, Subsistence and Commercial Family Farms: S o m e Theoretical Models of Subjective Equilibrium. , Subsistence and Economic Development, Singh I. , 1986, Agricultural Applications Agriculture Aldine, Chicago.

It w o u l d be useful to estimate consumption demand functions and supply functions of agricultural products in order to guide such g o v e r n m e n t decisions. In spite of the obvious simultaneity of consumption and production decisions in the rural environment, economists generally estimate models of consumption separately. T h e more frequently used model is the Linear Expenditure S y s t e m (LES). E x a m p l e s are found in works by Musgrove (1971) for Latin A m e r i c a , or by Lluch, Powell and W i l l i a m s (1977) for Mexico.

It would then be possible, f o r instance, t o interpret the impact of the instrumentation of production on a d e m a n d s y s t e m . 4 - How to choose between the different methods? The data W h e n w e do not have m u c h information, especially on t h e production process, it is not possible to estimate a complete m o d e l . A separable model could also cause s o m e difficulties if there is not enough information to rebuild t h e production index f r o m a living standards survey. However, one could use different surveys to estimate t h e production and consumption models under separability assumptions.

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