Peasant Household Behaviour with Missing Markets: Some Paradoxes Explained
Alain de Janvry (),
Marcel Fafchamps () and
Elisabeth Sadoulet ()
Economic Journal, 1991, vol. 101, issue 409, 1400-417
A model of peasant household behavior, under varying degrees of household-specific food and labor market failures, is constructed to show that these structural features can explain several well known patterns of peasant response which have often been attributed to peculiar motives, presumed specific to peasants. The model explains sluggish response to cash crops prices and high instability in perceived food and labor scarcities; the key role of manufactured consumer goods prices in stimulating peasants' effort in cash crops production; the effectiveness of taxation as opposed to incentives in stimulating cash crops production; and the key role of technological change in food production to enhance cash crop production. Results are obtained analytically in the case of one market failure and by numerical simulation with more than one. Copyright 1991 by Royal Economic Society.
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