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Separability in farm‐household economics: an experiment with linear programming

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  • Julie C. Delforce

Abstract

The assumption of separability between farm‐household production and consumption facilitates analysis, but entails several important restrictions. The implications of assuming separability are discussed here in relation to the modelling of a representative Tongan farm‐household. Econometric estimation of household demand is coupled with a linear programming (LP) model of farm‐household production. When analysing consumer demand, separable farm‐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 a realistic LP solution is unlikely to be obtained. This is likely to be a major deterrent to adopting the separable approach for studies in which the main focus is on production rather than consumption.

Suggested Citation

  • Julie C. Delforce, 1994. "Separability in farm‐household economics: an experiment with linear programming," Agricultural Economics, International Association of Agricultural Economists, vol. 10(2), pages 165-177, April.
    • Handle: RePEc:bla:agecon:v:10:y:1994:i:2:p:165-177
    DOI: 10.1111/j.1574-0862.1994.tb00299.x
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    Cited by:

    1. Muuz Hadush, 2017. "Implication of Animal Feed and Water Scarcity on Labor Allocation, Food Production and Per Capita Food Consumption in Tigrai Region, Ethiopia," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 42(4), pages 59-93, December.
    2. Ruben, Ruerd & van Ruijven, Arjan, 2001. "Technical coefficients for bio-economic farm household models: a meta-modelling approach with applications for Southern Mali," Ecological Economics, Elsevier, vol. 36(3), pages 427-441, March.
    3. Shiferaw, Bekele & Holden, Stein, 1998. "A Farm Household Analysis of Land Use and Soil Conservation Decisions of Smallholder Farmers in the Ethiopian Highlands," 1998 Fourth AFMA Congress, January 26-30, 1998, Stellenbosch, South Africa 187624, African Farm Management Association (AFMA).
    4. Drafor, Ivy & Kunze, Dagmar & Sarpong, Daniel Bruce, 2013. "Food Security: How Rural Ghanaian Households Respond to Food Shortages in Lean Season," International Journal of Agricultural Management, Institute of Agricultural Management, vol. 2(4), pages 1-8, July.
    5. Nouve, Yawotse & McCullough, Ellen, 2021. "Consumption-Side Separability Test of Agricultural Households," 2021 Annual Meeting, August 1-3, Austin, Texas 314034, Agricultural and Applied Economics Association.
    6. Arslan, Aslihan & Belotti, Federico & Lipper, Leslie, 2017. "Smallholder productivity and weather shocks: Adoption and impact of widely promoted agricultural practices in Tanzania," Food Policy, Elsevier, vol. 69(C), pages 68-81.
    7. Bryan, Elizabeth & De Pinto, Alessandro & Ringler, Claudia & Asuming-Brempong, Samuel & Bendaoud, Luís Artur & Givá, Nicia & Anh, Dao The & Mai, Nguyen Ngoc & Asenso-Okyere, Kwadwo & Sarpong, Daniel, 2012. "Institutions for agricultural mitigation: Potential and challenges in four countries," CAPRi working papers 107, International Food Policy Research Institute (IFPRI).
    8. Shiferaw, Bekele & Holden, Stein, 1999. "Soil Erosion and Smallholders' Conservation Decisions in the Highlands of Ethiopia," World Development, Elsevier, vol. 27(4), pages 739-752, April.
    9. Kruseman, Gideon & Bade, Jan, 1998. "Agrarian policies for sustainable land use: bio-economic modelling to assess the effectiveness of policy instruments," Agricultural Systems, Elsevier, vol. 58(3), pages 465-481, November.

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