Is off‐farm income reforming the farm? Evidence from Mexico

Lisa Pfeiffer, Alejandro López‐Feldman and J. Edward Taylor
Authors registered in the RePEc Author Service: Alejandro Lopez-Feldman

Agricultural Economics, 2009, vol. 40, issue 2, 125-138

Abstract: Does access to off‐farm income complement or compete with agricultural production? This article explores the effect of off‐farm income on agricultural production activities, using data from the 2003 Mexico National Rural Household Survey. We first discuss the theoretical conditions under which access to off‐farm income may influence production in an agricultural household model. Instrumental‐variable (IV) estimation methods are then used to test whether agricultural production activities, technologies, and input use differ between households with and without access to off‐farm income. We find that off‐farm income has a negative effect on agricultural output and the use of family labor on the farm, but a positive impact on the demand for purchased inputs. There is also a slight efficiency gain in households with access to off‐farm income. Findings offer insights into how household production evolves as rural households increasingly engage in off‐farm income activities.

Date: 2009
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (58)

Downloads: (external link)
https://doi.org/10.1111/j.1574-0862.2009.00365.x

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:agecon:v:40:y:2009:i:2:p:125-138

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0169-5150

Access Statistics for this article

Agricultural Economics is currently edited by W.A. Masters and G.E. Shively

More articles in Agricultural Economics from International Association of Agricultural Economists Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().