Journal
AMERICAN JOURNAL OF AGRICULTURAL ECONOMICS
Volume 89, Issue 3, Pages 665-681Publisher
WILEY
DOI: 10.1111/j.1467-8276.2007.00980.x
Keywords
farm household model; market imperfection; rural labor markets; selectivity; transaction costs
Categories
Ask authors/readers for more resources
We develop a farm household model to analyze price responses of farm households. This model incorporates various types of transaction costs as well as labor heterogeneity. Nonproportional variable transaction costs or labor heterogeneity imply that production and consumption decisions become nonseparable, even when the household buys or sells labor. An empirical model is estimated using data from Midwest Poland. The results show that nonproportional variable transaction costs and labor heterogeneity significantly influence household behavior. Not all price elasticities, however, change significantly if these are neglected.
Authors
I am an author on this paper
Click your name to claim this paper and add it to your profile.
Reviews
Recommended
No Data Available