Separability in farm-household economics: an experiment with linear programming Report as inadecuate




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The assumption of separability between farm-household production and consumption facilitates analysis, butentails several important restrictions. The implications of assuming separability are discussed here in relation to themodelling of a representative Tongan farm-household. Econometric estimation of household demand is coupled witha linear programming (LP) model of farm-household production. When analysing consumer demand, separablefarm-household economics is undoubtedly preferable to ignoring the production/ consumption linkages entirely.However, the restrictions which must be imposed on the production side of the separable model are such that arealistic LP solution is unlikely to be obtained. This is likely to be a major deterrent to adopting the separableapproach for studies in which the main focus is on production rather than consumption.

Subject(s): Consumer/Household Economics

Research Methods/ Statistical Methods

Issue Date: 1994-04

Publication Type: Journal Article

PURL Identifier: http://purl.umn.edu/173361 Published in: Agricultural Economics: The Journal of the International Association of Agricultural Economists, Volume 10, Issue 2 Page range: 165-177

Total Pages: 14

Record appears in: International Association of Agricultural Economists (IAAE) > Agricultural Economics: The Journal of the International Association of Agricultural Economists





Author: Delforce, Julie C.

Source: http://ageconsearch.umn.edu/record/173361?ln=en







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