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MARKET IMPERFECTIONS AND CLASS STRUCTURE: THE CASE OF SOUTH AFRICA AgEcon
Lovo, Stefania.
Land and market imperfections shape the organization of agricultural production and lead to different production regimes within rural farm households in South Africa. This paper presents a theoretical model to explain the presence of three main households groups (classes) determined on the basis of the labor regime adopted: small peasants (working both on and off farm), self cultivators (autarkic in labor) and hiring in households. Membership in the three categories is determined by the endogenous shadow wage and the effective market wages. A generalized ordered logit model is used to test the main predictions of the model. Market imperfections, which prevent household from accessing markets, are expected to have different impacts on heterogenous...
Tipo: Conference Paper or Presentation Palavras-chave: Farm households; Market imperfections; Liquidity constraint; Farm Management; Industrial Organization; International Development.
Ano: 2008 URL: http://purl.umn.edu/6675
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RISK AND STRUCTURAL CHANGE IN AGRICULTURE: HOW INCOME SHOCKS INFLUENCE FARM SIZE AgEcon
Roberts, Michael J.; Key, Nigel D..
Farm-level Census data and county-level income shock data reveal that past unexpected income shocks affect the rate of change in average farm size. Average farm size increases more quickly in counties experiencing negative income shocks as compared to counties experiencing positive income shocks. This result cannot be explained by perfect-market models, which predict farm size should adjust according to changes in the relative prices of labor and capital. We posit a model wherein cash flows affect liquidity, which in turn affects farm borrowing and capital costs. In the model, farms that do not face liquidity constraints benefit from negative income shocks because they reduce land values, so these farms expand while liquidity-constrained farms contract....
Tipo: Conference Paper or Presentation Palavras-chave: Farm size; Farm structure; Income shocks; Liquidity constraint; Risk; Agricultural Finance; Industrial Organization.
Ano: 2002 URL: http://purl.umn.edu/19661
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