Perverse supply response in peasant agriculture: A review

Ozanne, Adam

doi:10.1080/13600819908424176

Cited by 12 publications

(8 citation statements)

References 56 publications

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“…When perceived consequences of unfavourable outcomes are serious, as with poor farmers, risk aversion increases. Ozanne (1999) shows that there are two models of the production response of subsistence farmers. When diversification opportunities are restricted, this implies making full use of the production potential and the decision whether to produce or consume may be predetermined in favour of production (Kostov and Lingard, 2002), because producing maximises survival capacity.…”

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confidence: 99%

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Subsistence Agriculture in Transition Economies: Its Roles and Determinants

Kostov

Lingard²

2004

J Agricultural Economics

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This paper discusses some beneficial effects of subsistence agriculture with emphasis on transition countries. Micro‐economic models of subsistence agriculture are reviewed and a two‐stage decision model, combining risk aversion and transaction costs explanations for subsistence is developed. The role of subsistence agriculture is addressed in a static comparison to a purely commercial agriculture. We argue that subsistence can play a stabilising role and have beneficial impacts on the agricultural sector when the resources it employs are unwanted by the commercial sector. The exact conditions under which the latter is true are analysed in a static general equilibrium framework. Employing the concept of the subsistence level of consumption, the paper demonstrates that these static effects can be valid in a dynamic perspective, provided additional conditions are met. Policy recommendations with regard to agricultural commercialisation are presented. These explicitly rely upon assumptions about the orientation of subsistence farmers. The lack of current research into this important behavioural feature of farmers in transition countries requires urgent action. There is urgent need for more research into the motivation, objectives and behaviour of subsistence farmers in rural economies of countries in transition.

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confidence: 99%

“…The extent to which the price elasticity decreases, and its sign, depend on the motives for producing. Ozanne (1999) shows that there are two models of the production response of subsistence farmers. When their motive is to secure consumption, they will try to sell marketable surplus.…”

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confidence: 99%

Subsistence Agriculture in Transition Economies: Its Roles and Determinants

Kostov

Lingard²

2004

J Agricultural Economics

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“…Comprehensive reviews of these studies have been provided by Askari and Cummings (1977), Behrman (1989), Rao (1989), Ozanne (1992) and Mamingi (1997). Comprehensive reviews of these studies have been provided by Askari and Cummings (1977), Behrman (1989), Rao (1989), Ozanne (1992) and Mamingi (1997).…”

Section: Theoretical Backgroundmentioning

confidence: 99%

“…Few studies have dealt with the problem of backbending supply curves (Ozanne, 1992). It is argued that supply curves for agricultural products may be backward-bending with certain price ranges (Ozanne, 1992).…”

Section: Theoretical Backgroundmentioning

confidence: 99%

Price supply response of vegetable growers in the Sultanate of Oman

Omezzine¹

1998

Agricultural Economics

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Information on supply price elasticities has been acknowledged as being very important for decision makers at the macro and micro levels. This paper presents an empirical investigation of vegetable growers' responses to prices in Oman. It develops a single supply response function incorporating adaptive expectation model for prices. Results indicate that growers adjust relatively fast to changes in expected prices. However, these adjustments are rather low for SOI'le crop in the short-and longrun. Growers' production decisions have also shown a significant response to prices of other products competing for farm space and other production resources. These results will support efforts aimed at market development and crop enhancement programs.

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“…Supply response studies have been widely surveyed by many economists. Comprehensive reviews of these studies have been provided by Askari and Cummings (1977), Behrman (1989), Rao (1989), Ozanne (1992) and Mamingi (1997). The more recent as well as the older studies indicate that the traditional single equation analysis and time series data have been very popular in estimating supply equations for individual annual crop (Nerlove, 1958;Trail et al, 1978;Jaforullah, 1993).…”

Section: Theoretical Backgroundmentioning

confidence: 99%