Farm and Non-Farm Labor Decisions and Household Efficiency

Dimitris Christopoulos, Margarita Genius and Vangelis Tzouvelekas

No 2001, Working Papers from University of Crete, Department of Economics

Abstract: This paper develops a theoretical framework for modeling farm households' joint production and consumption decisions in the presence of technical inefficiency. Following Lopez (1984), a household model where farmers display different preferences between on-farm and off-farm labor is adopted while their production activity can be subject to technical inefficiency. The presence of technical inefficiency does not only lead to the inability of farmers to achieve maximal output but it will also affect the consumption allocation and the household's labor supply decisions through its effect on both income and on the shadow price of on-farm labor, leading to overall household inefficiency.

Keywords: non-separable agricultural household model; household and farm efficiency; cereal farms; UK (search for similar items in EconPapers)
JEL-codes: C41 O16 O33 Q25 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2020-02-08
New Economics Papers: this item is included in nep-agr
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Journal Article: Farm and non-farm labor decisions and household efficiency (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:crt:wpaper:2001

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