A System Comparison Approach to Distinguish Two Nonseparable and Nonnested Agricultural Household Models
This study distinguishes two nonseparable agricultural household models for a self-employed farm household. One assumes heterogeneity of farm and nonfarm labor and a competitive market for nonfarm labor. The other assumes homogeneity of the two types of labor and a restricted market for nonfarm labor. We compare demand systems that are derived from them, which have different dependent variables and different numbers of equations. We apply a Cox-type test to compare these complicated nonnested systems. Results show clearly that the former is better for Japanese rice-farming households. Comparison of price elasticities for those models verifies the importance of that test. Copyright ©2007 American Agricultural Economics Association.
Year of publication: |
2008
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Authors: | Sonoda, Tadashi |
Published in: |
American Journal of Agricultural Economics. - American Agricultural Economics Association. - Vol. 90.2008, 2, p. 509-523
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Publisher: |
American Agricultural Economics Association |
Saved in:
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