To trade or not to trade: non-separable farm household models in partial and general equilibrium.

Empirical evidence and microeconomic theory suggest that, in many settings, farm household production and consumption decisions are non-separable. Non-separability may have important policy implications, including lack of response or threshold effects when incentives change. This paper extends the l...

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Main Authors: Lofgren, Hans, Robinson, Sherman
Format: Artículo preliminar
Language:Inglés
Published: International Food Policy Research Institute 1999
Subjects:
Online Access:https://hdl.handle.net/10568/161359
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author Lofgren, Hans
Robinson, Sherman
author_browse Lofgren, Hans
Robinson, Sherman
author_facet Lofgren, Hans
Robinson, Sherman
author_sort Lofgren, Hans
collection Repository of Agricultural Research Outputs (CGSpace)
description Empirical evidence and microeconomic theory suggest that, in many settings, farm household production and consumption decisions are non-separable. Non-separability may have important policy implications, including lack of response or threshold effects when incentives change. This paper extends the literature in two ways. First, we develop a non-separable farm household model with transaction costs and endogenous choice of market "regime" (surplus, self-sufficiency, or deficit) for production-consumption items (commodities and factors that are both demanded and supplied by the household). Second, we embed this household model in an economywidecomputable general equilibrium model which is formulated as a mixed-complementarity problem. Simulations with a model based on data for a stylized, low-income, Sub-Saharan African country show that the proposed formulation enhances our ability to analyze the impact of exogenous changes on African farmers."
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publishDate 1999
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spelling CGSpace1613592025-11-06T07:18:39Z To trade or not to trade: non-separable farm household models in partial and general equilibrium. Lofgren, Hans Robinson, Sherman economic policies microeconomics households equilibrium theory models decision making Empirical evidence and microeconomic theory suggest that, in many settings, farm household production and consumption decisions are non-separable. Non-separability may have important policy implications, including lack of response or threshold effects when incentives change. This paper extends the literature in two ways. First, we develop a non-separable farm household model with transaction costs and endogenous choice of market "regime" (surplus, self-sufficiency, or deficit) for production-consumption items (commodities and factors that are both demanded and supplied by the household). Second, we embed this household model in an economywidecomputable general equilibrium model which is formulated as a mixed-complementarity problem. Simulations with a model based on data for a stylized, low-income, Sub-Saharan African country show that the proposed formulation enhances our ability to analyze the impact of exogenous changes on African farmers." 1999 2024-11-21T09:55:09Z 2024-11-21T09:55:09Z Working Paper https://hdl.handle.net/10568/161359 en Open Access application/pdf International Food Policy Research Institute Lofgren, Hans; Robinson, Sherman. 1999. To trade or not to trade;non-separable farm household models in partial and general equilibrium. TMD Discussion Paper 37. https://hdl.handle.net/10568/161359
spellingShingle economic policies
microeconomics
households
equilibrium theory
models
decision making
Lofgren, Hans
Robinson, Sherman
To trade or not to trade: non-separable farm household models in partial and general equilibrium.
title To trade or not to trade: non-separable farm household models in partial and general equilibrium.
title_full To trade or not to trade: non-separable farm household models in partial and general equilibrium.
title_fullStr To trade or not to trade: non-separable farm household models in partial and general equilibrium.
title_full_unstemmed To trade or not to trade: non-separable farm household models in partial and general equilibrium.
title_short To trade or not to trade: non-separable farm household models in partial and general equilibrium.
title_sort to trade or not to trade non separable farm household models in partial and general equilibrium
topic economic policies
microeconomics
households
equilibrium theory
models
decision making
url https://hdl.handle.net/10568/161359
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AT robinsonsherman totradeornottotradenonseparablefarmhouseholdmodelsinpartialandgeneralequilibrium