[go: up one dir, main page]
More Web Proxy on the site http://driver.im/
IDEAS home Printed from https://ideas.repec.org/p/ags/iaae18/277260.html
   My bibliography  Save this paper

The shadow value of agricultural land rent of rural households and alternative uses of land for sustainable development: the case of Mexico

Author

Listed:
  • Hernandez-Solano, A.
  • Yunez-Naude, A.
Abstract
Market failures are frequent in the rural sector of less developed countries, so, rural economic agents that face high transaction costs take their decisions based on implicit or shadow prices. Failing to consider this feature may generate, amongst others, misleading results for policy evaluation and recommendations. In this paper we develop a theoretical agricultural household model that considers market failures in a subsistence crop market and in agricultural land and labor markets. We apply the model to estimate econometrically the shadow price of agricultural land of rural households in Mexico using economic and socio-demographic data from a representative national survey of these economic agents. We find that the estimated average shadow price of their land rent is relatively high and also that it has sharp variation in rural Mexico. Based on these results we suggest that policies aimed to promote changes in the use of rural land (e.g. from agriculture to forestry) have to consider the value attached to agricultural land by rural households and its variability according to the diversity of agro-ecological conditions in countries like Mexico. Acknowledgement : We thank the financial support of Mexico Nacional Council for de Evaluation of Social Policy (CONEVAL, Spanish acronym), granted to the authors through El Colegio de Mexico.

Suggested Citation

  • Hernandez-Solano, A. & Yunez-Naude, A., 2018. "The shadow value of agricultural land rent of rural households and alternative uses of land for sustainable development: the case of Mexico," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277260, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae18:277260
    DOI: 10.22004/ag.econ.277260
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/277260/files/1492.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.277260?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Emmanuel Skoufias, 1994. "Using Shadow Wages to Estimate Labor Supply of Agricultural Households," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 76(2), pages 215-227.
    2. de Janvry, Alain & Fafchamps, M. & Sadoulet, Elisabeth, 1991. "Peasant Household Behavior with Missing Markets: Some Paradoxes Explain," CUDARE Working Papers 198579, University of California, Berkeley, Department of Agricultural and Resource Economics.
    3. Hoffmann, Vivian & Gatobu, Ken Mwithirwa, 2014. "Growing their own: Unobservable quality and the value of self-provisioning," Journal of Development Economics, Elsevier, vol. 106(C), pages 168-178.
    4. Arslan, Aslihan & Taylor, J.Edward, 2009. "Farmers' Subjective Valuation of Subsistence Crops: The Case of Traditional Maize in Mexico," American Journal of Agricultural Economics APPENDICES, Agricultural and Applied Economics Association, vol. 91(4), pages 1-4, April.
    5. Christopher B. Barrett & Shane M. Sherlund & Akinwumi A. Adesina, 2008. "Shadow wages, allocative inefficiency, and labor supply in smallholder agriculture," Agricultural Economics, International Association of Agricultural Economists, vol. 38(1), pages 21-34, January.
    6. de Janvry, Alain & Fafchamps, Marcel & Sadoulet, Elisabeth, 1991. "Peasant Household Behaviour with Missing Markets: Some Paradoxes Explained," Economic Journal, Royal Economic Society, vol. 101(409), pages 1400-1417, November.
    7. Hanan G. Jacoby, 1993. "Shadow Wages and Peasant Family Labour Supply: An Econometric Application to the Peruvian Sierra," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 60(4), pages 903-921.
    8. Nicholas Magnan & Douglas M. Larson & J. Edward Taylor, 2012. "Stuck on Stubble? The Non-market Value of Agricultural Byproducts for Diversified Farmers in Morocco-super- ," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 94(5), pages 1055-1069.
    9. Tadashi Sonoda & Yoshihiro Maruyama, 1999. "Effects of the Internal Wage on Output Supply: A Structural Estimation for Japanese Rice Farmers," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(1), pages 131-143.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Berazneva, Julia & Lee, David R. & Place, Frank & Jakubson, George, 2018. "Allocation and Valuation of Smallholder Maize Residues in Western Kenya," Ecological Economics, Elsevier, vol. 152(C), pages 172-182.
    2. Dillon, Brian & Barrett, Christopher B., 2017. "Agricultural factor markets in Sub-Saharan Africa: An updated view with formal tests for market failure," Food Policy, Elsevier, vol. 67(C), pages 64-77.
    3. Henning, Christian H.C.A. & Henningsen, Arne, 2005. "Modeling Price Response of Farm Households Under Imperfect Labor Markets: A Farm Household Approach to Family Farms in Poland," 94th Seminar, April 9-10, 2005, Ashford, UK 24431, European Association of Agricultural Economists.
    4. Tsuda, Shunsuke, 2022. "Refugee inflows, surplus farm labor, and crop marketization in rural Africa," Journal of Development Economics, Elsevier, vol. 155(C).
    5. Samutpradit, Saisawat, 2024. "Employment effects of minimum wages in a dual economy: Evidence from Thailand," Journal of Development Economics, Elsevier, vol. 168(C).
    6. Satoshi KOJIMA, 2010. "Quantitative Assessment of Biofuel Promotion Policy in India: A Dynamic CGE Approach," EcoMod2010 259600093, EcoMod.
    7. Wang, Xiaobing, 2007. "Labor market behavior of Chinese rural households during transition," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 42, number 92321, September.
    8. Christopher Barrett & Daniel Clay, 2003. "How Accurate is Food-for-Work Self-Targeting in the Presence of Imperfect Factor Markets? Evidence from Ethiopia," Journal of Development Studies, Taylor & Francis Journals, vol. 39(5), pages 152-180.
    9. Luca Tiberti & Marco Tiberti, 2015. "Rural Policies, Price Change and Poverty in Tanzania: An Agricultural Household Model-Based Assessment," Journal of African Economies, Centre for the Study of African Economies, vol. 24(2), pages 193-229.
    10. Kamau, Mercy W. & Burger, Kees & Giller, Ken E., 2007. "Labour allocative efficiency and factors influencing farm households interaction with the labour market," 106th Seminar, October 25-27, 2007, Montpellier, France 7947, European Association of Agricultural Economists.
    11. Benjamin, Catherine & Gallic, Ewen, 2018. "Does climate change influence demand ? Indian household behavior with imperfect labor markets," 2018 Annual Meeting, August 5-7, Washington, D.C. 274185, Agricultural and Applied Economics Association.
    12. Mohapatra, Sandeep & Barrett, Christopher B. & Snyder, Donald L. & Biswas, Baudeb, 1999. "Does Food Aid Really Discourage Food Production?," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 54(2), June.
    13. André, Pierre & Delesalle, Esther & Dumas, Christelle, 2021. "Returns to farm child labor in Tanzania," World Development, Elsevier, vol. 138(C).
    14. Eduardo Ramírez & William Foster, 2003. "Análisis de la Oferta de Mano de Obra Familiar en la Agricultura Campesina," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 40(119), pages 89-110.
    15. Glauben, Thomas & Herzfeld, Thomas & Loy, Jens-Peter & Renner, Swetlana & Hockmann, Heinrich, 2012. "The impact of fiscal policies on agricultural household decisions," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 29(2), pages 166-177.
    16. Wouterse, Fleur & Taylor, J. Edward, 2008. "Migration and Income Diversification:: Evidence from Burkina Faso," World Development, Elsevier, vol. 36(4), pages 625-640, April.
    17. Merfeld, Joshua D., 2020. "Smallholders, Market Failures, and Agricultural Production: Evidence from India," IZA Discussion Papers 13682, Institute of Labor Economics (IZA).
    18. Ott, Ingrid & Papilloud, Christian & Zülsdorf, Torben, 2008. "What drives innovation? Causes of and Consequences for nanotechnologies," Kiel Working Papers 1455, Kiel Institute for the World Economy (IfW Kiel).
    19. Daniel R. LaFave & Evan D. Peet & Duncan Thomas, 2020. "Farm Profits, Prices and Household Behavior," NBER Working Papers 26636, National Bureau of Economic Research, Inc.
    20. Almeida, Alexandre N. & Bravo-Ureta, Boris E., 2019. "Agricultural productivity, shadow wages and off-farm labor decisions in Nicaragua," Economic Systems, Elsevier, vol. 43(1), pages 99-110.

    More about this item

    Keywords

    Land Economics/Use;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:iaae18:277260. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/iaaeeea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.