By FRANCE CAILLAVET, HERVÉ GUYOMARD and ROBERT LIFRAN (Eds.)
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Additional info for Agricultural Household Modelling and Family Economics
The latter is very important and precludes any analysis singling out each crop. On the production side two assumptions are crucial and w e tried as much as w e could to control them. First, the units of measurement of quantities produced may be non standard particularly for food crops. T o infer the scale of these different units w e computed the different mean prices per unit and relate the different values to the ratio of prices of the most c o m m o n unit of measurement in 1985, 1986 and 1987.
X is t h e F total a m o u n t of labor (hired plus f a r m family labor) e m p l o y e d o n - f a r m , a n d x is the a m o u n t o f f a r m family labor employed on f a r m .
W e argued that comparing implicit prices of inputs and their market prices allow to better analyse the response of farmers in less developed countries to price incentives. In the c a s e w h e r e the structure of internal (to the household) relative prices differs from the structure of market prices, this response may be very different from w h a t can be expected using the traditional tools of the theory of production. In this case, non recursivity holds and it would be necessary to also take into account all preference parameters as consumption and production decisions are interrelated.