IDEAS home Printed from https://ideas.repec.org/p/wpa/wuwpco/0409001.html
   My bibliography  Save this paper

Block-diagonal representation of a dualistic agricultural economy and its application in formal modelling: the case of Bulgaria

Author

Listed:
  • Philip Kostov

    (Queen's University Belfast)

  • John Lingard

    (University of Newcastle)

Abstract

The paper discusses some of the problems of subsistence agriculture in countries in transition and proposes a methodology for analysis. It demonstrates that approaches which ignore the dualistic agriculture structure cannot provide consistent estimates of the behavioural parameters of the total agricultural sector. The bias is analysed using stochastic simulation and it is concluded that the subsistence agricultural sector has to be explicitly modelled alongside commercial agriculture. This is achieved using the principle of a block diagonal representation of dualistic agriculture, which is then applied to Bulgaria. This allows efficient decomposition of the different effects and provides a reliable representation of the process of agricultural commercialisation. The effects of subsistence farming on overall agricultural performance are presented and interpreted within a Structural Change Agricultural Policy Analysis Model (SCAPAM). The place of subsistence agriculture in transition economies is found to be compatible with optimisation principles and it is concluded that subsistence agriculture plays the role of market clearing. Some extensions of the methodology are discussed.

Suggested Citation

  • Philip Kostov & John Lingard, 2004. "Block-diagonal representation of a dualistic agricultural economy and its application in formal modelling: the case of Bulgaria," Computational Economics 0409001, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpco:0409001
    Note: Type of Document - pdf; pages: 31
    as

    Download full text from publisher

    File URL: https://econwpa.ub.uni-muenchen.de/econ-wp/comp/papers/0409/0409001.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Philip Kostov & John Lingard, 2004. "Modelling the effects of subsistence on Bulgarian agricultural performance," Computational Economics 0409002, University Library of Munich, Germany.
    2. Philippe Aghion & Peter Howitt, 1998. "Market Structure and the Growth Process," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 1(1), pages 276-305, January.
    3. Paul Caskie, 2000. "Back to Basics: Household Food Production in Russia," Journal of Agricultural Economics, Wiley Blackwell, vol. 51(2), pages 196-209, May.
    4. Mergos, G. & Stoforos, C. & Mishev, P. & Ivanova, N., 2001. "Analysing agricultural policy reforms under transition in Bulgaria," Food Policy, Elsevier, vol. 26(5), pages 475-493, October.
    5. Seeth, Harm Tho & Chachnov, Sergei & Surinov, Alexander & Von Braun, Joachim, 1998. "Russian poverty: Muddling through economic transition with garden plots," World Development, Elsevier, vol. 26(9), pages 1611-1624, September.
    6. Sarris, Alexander H & Doucha, Tomas & Mathijs, Erik, 1999. "Agricultural Restructuring in Central and Eastern Europe: Implications for Competitiveness and Rural Development," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 26(3), pages 305-329, August.
    7. Adam Ozanne, 1999. "Perverse supply response in peasant agriculture: A review," Oxford Development Studies, Taylor & Francis Journals, vol. 27(2), pages 251-270.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Philip Kostov & John Lingard, 2004. "On the nature of Bulgarian subsistence agriculture," Others 0409009, University Library of Munich, Germany.
    2. Philip Kostov & John Lingard, 2004. "Subsistence Agriculture in Transition Economies: Its Roles and Determinants," Journal of Agricultural Economics, Wiley Blackwell, vol. 55(3), pages 565-579, November.
    3. Philip Kostov, 2004. "Transition, agricultural decommercialisation, and their implications for quantitative modelling," Others 0409008, University Library of Munich, Germany.
    4. Mathijs, Erik & Noev, Nivelin, 2002. "Commercialization and Subsistence in Transaction Agriculture: Empirical Evidence from Albania, Bulgaria, Hungary and Romania," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24786, European Association of Agricultural Economists.
    5. Fritzsch, Jana & Wegener, Stefan & Buchenrieder, Gertrud & Curtiss, Jarmila & Paloma, Sergio Gomez y, 2011. "Is there a future for semi-subsistence farm households in Central and southeastern Europe? A multiobjective linear programming approach," Journal of Policy Modeling, Elsevier, vol. 33(1), pages 70-91, January.
    6. Philip Kostov & John Lingard, 2004. "Transition, agriculture and the vanishing market," Others 0409011, University Library of Munich, Germany.
    7. Birol, Ekin & Kontoleon, Andreas & Smale, Melinda, 2006. "Combining revealed and stated preference methods to assess the private value of agrobiodiversity in Hungarian home gardens:," EPTD discussion papers 156, International Food Policy Research Institute (IFPRI).
    8. Philip Kostov & John Lingard, 2004. "Institutional foundations of subsistence agriculture in transition economies," Others 0409010, University Library of Munich, Germany.
    9. Birol, Ekin & Kontoleon, Andreas & Smale, Melinda, 2005. "Using A Choice Experiment To Estimate The Demand Of Hungarian Farmers For Food Security And Agrobiodiversity During Economic Transition," Environmental Economy and Policy Research Discussion Papers 31937, University of Cambridge, Department of Land Economy.
    10. Bezemer, Dirk J., 2004. "Risk and agricultural de-collectivisation, with evidence from the Czech Republic," Economic Systems, Elsevier, vol. 28(1), pages 13-33, March.
    11. Catherine Brinkley, 2018. "The Small World of the Alternative Food Network," Sustainability, MDPI, vol. 10(8), pages 1-19, August.
    12. Rozelle, Scott & Swinnen, Johan F.M., 2000. "Transition And Agriculture," Working Papers 11948, University of California, Davis, Department of Agricultural and Resource Economics.
    13. Jeremy Franks & Irina Davydova, 2006. "Marketing Strategies in Changed Circumstances: Observation from Farmers in Novosibirsk Oblast', Russia," Post-Communist Economies, Taylor & Francis Journals, vol. 18(2), pages 227-241.
    14. Jan Fałkowski & Maciej Jakubowski & Paweł Strawiński, 2014. "Returns from income strategies in rural Poland," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 22(1), pages 139-178, January.
    15. Petrick, Martin, 2013. "Competition for land and labour among individual farms and agricultural enterprises: Evidence from Kazakhstan's grain region [Der Wettbewerb zwischen Einzelbetrieben und Agrarunternehmen um Boden u," IAMO Discussion Papers 141, Leibniz Institute of Agricultural Development in Transition Economies (IAMO).
    16. Petrick, Martin, 2004. "Governing Structural Change And Externalities In Agriculture: Toward A Normative Institutional Economics Of Rural Development," IAMO Discussion Papers 14878, Institute of Agricultural Development in Transition Economies (IAMO).
    17. Shireen Kanji, 2011. "Labor Force Participation, Regional Location, and Economic Well-Being of Single Mothers in Russia," Journal of Family and Economic Issues, Springer, vol. 32(1), pages 62-72, March.
    18. Canton, Erik J. F. & de Groot, Henri L. F. & Nahuis, Richard, 2002. "Vested interests, population ageing and technology adoption," European Journal of Political Economy, Elsevier, vol. 18(4), pages 631-652, November.
    19. Rizov, Marian, 2006. "Rural development perspectives in enlarging Europe: The implications of CAP reforms and agricultural transition in accession countries," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 14(2), pages 219-238.
    20. Johan F. M. Swinnen & Liesbeth Dries & Karen Macours, 2005. "Transition and agricultural labor," Agricultural Economics, International Association of Agricultural Economists, vol. 32(1), pages 15-34, January.

    More about this item

    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Statistical Simulation Methods: General

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wpa:wuwpco:0409001. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: EconWPA (email available below). General contact details of provider: https://econwpa.ub.uni-muenchen.de .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.