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Separation Hypothesis Tests in the Agricultural Household Model

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  • Kien T. Le

Abstract

In an agricultural household model, farmers' production decisions can be either separated or nonseparated from preferences. Since previous studies on agricultural household behavior and policy effects have shown that the model with separation yields different results than the model with nonseparation, it is important to have a test to identify the correct model. This paper provides new tests that extend current tests in two directions. First, the new tests avoid issues that current tests have to address, such as simultaneity bias and the estimation of the production function. Second, the new tests make use of more information implied from the separation hypothesis than current tests. Copyright 2010, Oxford University Press.

Suggested Citation

  • Kien T. Le, 2010. "Separation Hypothesis Tests in the Agricultural Household Model," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 92(5), pages 1420-1431.
    • Handle: RePEc:oup:ajagec:v:92:y:2010:i:5:p:1420-1431
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    Cited by:

    1. Jones, Sam & Tarp, Finn, 2013. "Jobs and Welfare in Mozambique," WIDER Working Paper Series 045, World Institute for Development Economic Research (UNU-WIDER).
    2. Dillon, Brian & Brummund, Peter & Mwabu, Germano, 2019. "Asymmetric non-separation and rural labor markets," Journal of Development Economics, Elsevier, vol. 139(C), pages 78-96.
    3. Dillon, Brian & Barrett, Christopher B., 2017. "Agricultural factor markets in Sub-Saharan Africa: An updated view with formal tests for market failure," Food Policy, Elsevier, vol. 67(C), pages 64-77.
    4. Hayatullah Ahmadzai, 2018. "Factor market participation and tests for separability in Afghanistan," Discussion Papers 2018-10, University of Nottingham, CREDIT.
    5. Sam Jones & Finn Tarp, 2013. "Jobs and Welfare in Mozambique," WIDER Working Paper Series wp-2013-045, World Institute for Development Economic Research (UNU-WIDER).
    6. Takeshima, Hiroyuki & Kishore, Avinash & Kumar, Anjani, 2024. "Climate shocks and fertilizer responses: Field-level evidence for rice production in Bangladesh," IAAE 2024 Conference, August 2-7, 2024, New Delhi, India 344280, International Association of Agricultural Economists (IAAE).
    7. 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.
    8. Posey, Sean, 2022. "Missing Markets for Some: Testing for Intra-Household Separability," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322498, Agricultural and Applied Economics Association.
    9. Marwan Benali & Bernhard Brümmer & Victor Afari‐Sefa, 2018. "Smallholder participation in vegetable exports and age‐disaggregated labor allocation in Northern Tanzania," Agricultural Economics, International Association of Agricultural Economists, vol. 49(5), pages 549-562, September.
    10. Nguyen, Huy Quynh & Warr, Peter, 2020. "Land consolidation as technical change: Economic impacts in rural Vietnam," World Development, Elsevier, vol. 127(C).
    11. Blaise Waly BASSE & Amadou Abdoulaye FALL, 2023. "Allocation de la main-d’œuvre dans les exploitations rizicoles au Sénégal," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 57, pages 49-61.
    12. Muhammad Sohail Amjad Makhdum & Rakhshanda Kousar, 2021. "Gender in agriculture: Determinants of female labor supply decisions among rural households in the context of market imperfections in Pakistan," Agricultural Economics, International Association of Agricultural Economists, vol. 52(2), pages 235-248, March.
    13. Huffman, Wallace E., 2011. "Household Production and the Demand for Food and Other Inputs: U.S. Evidence," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 36(3), pages 1-23, December.
    14. Nguyen, Huy, 2014. "Crop diversification, economic performance and household’s behaviours Evidence from Vietnam," MPRA Paper 59090, University Library of Munich, Germany.
    15. Zhao, Jianmei, 2018. "Will access to internet affect the subjective well-being of rural residents in China?," 2018 Annual Meeting, August 5-7, Washington, D.C. 274486, Agricultural and Applied Economics Association.
    16. Benali, Marwan & Brümmer, Bernhard & Afari-Sefa, Victor, 2017. "Small producer participation in export vegetable supply chains and household labour allocation in Tanzania: an age-disaggregated approach," GlobalFood Discussion Papers 257513, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    17. Yitayew, Asresu & Kassie, Girma T. & Yigezu, Yigezu A., 2023. "Market participation and pastoral welfare in drought-prone areas: A dose-response analysis," Economic Analysis and Policy, Elsevier, vol. 80(C), pages 1415-1429.
    18. Thottappilly, Anna, 2021. "Identifying the Income Effect on Nutrition for Agricultural Households: Separability of Production and Consumption," 2021 Conference, August 17-31, 2021, Virtual 315335, International Association of Agricultural Economists.
    19. Zhao, Jianmei & Zhang, Jun, 2012. "Credit Constraint and Non-separable Behavior of Rural Households — Evidence from China," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 123950, Agricultural and Applied Economics Association.
    20. Hiroyuki Takeshima & Kamiljon Akramov & Allen Park & Jarilkasin Ilyasov & Yanyan Liu & Tanzila Ergasheva, 2020. "Agriculture–nutrition linkages with heterogeneous, unobserved returns and costs: Insights from Tajikistan," Agricultural Economics, International Association of Agricultural Economists, vol. 51(4), pages 553-565, July.
    21. 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.
    22. Huy Quynh Nguyen & Peter Warr, 2018. "Land consolidation as technical change: impacts on-farm and off-farm in rural Vietnam," Departmental Working Papers 2018-25, The Australian National University, Arndt-Corden Department of Economics.
    23. Eleonora Matteazzi & Martina Menon & Federico Perali, 2017. "The Collective Farm-household Model: Policy and Welfare Simulations," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 39(1), pages 111-153.
    24. Nguyen, Huy Quynh, 2017. "Analyzing the economies of crop diversification in rural Vietnam using an input distance function," Agricultural Systems, Elsevier, vol. 153(C), pages 148-156.
    25. Touhami Abdelkhalek & Fouzia Ejjanoui, 2015. "Tests De Séparabilité dans les Decisioins des Menages Agricoles: Cas du Maroc," Working Papers 955, Economic Research Forum, revised Oct 2015.

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