By FRANCE CAILLAVET, HERVÉ GUYOMARD and ROBERT LIFRAN (Eds.)
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Extra info for Agricultural Household Modelling and Family Economics
The a i m of this paper is to suggest and empirically test methods for dealing with modelling production in estimating d e m a n d systems in order to identify those goods for which it would be important. In section 1 , w e present s o m e empirical analysis of a d e m a n d system based on a budget-consumption survey. In section 2, 26/Agricultural Household Modelling and Family Economics w e list different methods for solving the problem of the endogeneity of production and w e propose s o m e criteria to choose between the various methods.
Strauss J . , 1982, Determinants of Food Consumption in Rural Sierra Leone: Application of the Quadratic Expenditure S y s t e m to the C o n s u m p t i o n Leisure C o m p o n e n t of a Household Firm Model, Journal Economics, Vis H. , of Development 2 1 , pp. 263-285. , 1972, Une Enquete de c o n s o m m a t i o n alimentaire en Republique Rwandaise. Institut National de Recherche Scientifique, Butare, Republique Rwandaise. The Role of Production Decisions in Modelling the Consumption Patterns...
In this case, non recursivity holds and it would be necessary to also take into account all preference parameters as consumption and production decisions are interrelated. If this non recursivity results from the fact that households are constrained on the labour market, which s e e m s to be likely if our results are to be taken at face value, the response to price incentives depends not only on all preference parameters, but also on how the rationing in the labour market w o u l d change. Regarding the empirical aspect of this paper, it is worth noting that the likely large errors of measure in the raw data and the size of the sample imply a poor quality of determination of the results.