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A System Comparison Approach to Distinguish Two Nonseparable and Nonnested Agricultural Household Models

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  • Tadashi Sonoda

Abstract

This study distinguishes two nonseparable agricultural household models for a self-employed farm household. One assumes heterogeneity of farm and nonfarm labor and a competitive market for nonfarm labor. The other assumes homogeneity of the two types of labor and a restricted market for nonfarm labor. We compare demand systems that are derived from them, which have different dependent variables and different numbers of equations. We apply a Cox-type test to compare these complicated nonnested systems. Results show clearly that the former is better for Japanese rice-farming households. Comparison of price elasticities for those models verifies the importance of that test. Copyright 2008, Oxford University Press.

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  • Tadashi Sonoda, 2008. "A System Comparison Approach to Distinguish Two Nonseparable and Nonnested Agricultural Household Models," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(2), pages 509-523.
    • Handle: RePEc:oup:ajagec:v:90:y:2008:i:2:p:509-523
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    File URL: http://hdl.handle.net/10.1111/j.1467-8276.2007.01115.x
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    Cited by:

    1. Satoshi KOJIMA, 2010. "Quantitative Assessment of Biofuel Promotion Policy in India: A Dynamic CGE Approach," EcoMod2010 259600093, EcoMod.
    2. Dimitris Christopoulos & Margarita Genius & Vangelis Tzouvelekas, 2021. "Farm and non-farm labor decisions and household efficiency," Journal of Productivity Analysis, Springer, vol. 56(1), pages 15-31, August.
    3. Kleinwechter, Ulrich & Grethe, Harald, 2011. "Trade reform, migration, and a Chinese village economy," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114753, European Association of Agricultural Economists.

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