Agricultural Household Models

Question 1

ravallion and datt (1996)

Answer 1

found agricultural growth is main driver of property reduction in low and middle income countries

Question 2

poverty reducing effect of agricultural growth is attributed to…

Answer 2

• reduction in food prices
• increase in farm employment
• increase in rural non-farm employment

Question 3

bardham and udry

Answer 3

model of household jointly engaged in production and consumption commonly called agricultural household model

Question 4

characteristics of farm/firm households

Answer 4

1) derive livelihoods from agriculture
2) utilise mainly family labour in farm production
3) partial engagement in input and output markets which are often imperfect/incomplete
4) members of communities

Question 5

characteristics of farm/firm households - utilise mainly family labour in farm production

Answer 5

hired labour minority relative to family labour

Question 6

characteristics of farm/firm households - partial engagement in input and output markets which are often imperfect/incomplete

Answer 6

• degree of self-sufficiency in consumption
• only proportion of output sold
• self-provision in inputs
• main factors of production, land, labour not purchased in market

Question 7

characteristics of farm/firm households - members of communities

Answer 7

• gives access to common property resources, mutual insurance
• community can be hurdle to entrepreneurship and individual success
• dominated by other social classes and use evasion, subterfuge and foot dragging to resist state control
• suffer from surplus extraction, political dominion, religious credulity, and poverty

Question 8

what is the ‘neoclassical theory of farm production’

Answer 8

farmer is individual decision maker who can vary level and kind of farm inputs and outputs

Question 9

relationships between farm inputs and outputs

Answer 9

1) factor-product/input-output relationship
- known as production function
- relates varying levels of output to varying levels of input

2) factor-factor relationship
- known as method or technique of production
- relates varying a combination of inputs to produce specified output

3) product-product relationship
- known as enterprise choice
- relates varying outputs that could be obtained from same resources

Question 10

goal of neoclassical theory of farm production

Answer 10

profit maximisation