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Perverse supply response in peasant agriculture: A review

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  • Adam Ozanne

Abstract

The long-running debate concerning the special characteristics of peasant production in less developed countries which may lead to perverse supply responses in their agricultural sectors is explored. Four stages in the debate are identified. The first was based on casual observation and the target income or fixity-of-wants hypothesis. The second took account of peasant own-consumption and focused on the marketed surplus. The third addressed the possible effect of uncertainty and risk aversion on supply response. The fourth is embodied in modern farm household models of peasant behaviour. Although the predictions regarding supply response derived from these models vary, they all suggest that agricultural supply response may be negative. The bulk of empirical evidence, however, for both total production and marketed surplus tends to refute the notion, whether it is theoretically consistent or not, that supply response in peasant agriculture is negative.

Suggested Citation

  • Adam Ozanne, 1999. "Perverse supply response in peasant agriculture: A review," Oxford Development Studies, Taylor & Francis Journals, vol. 27(2), pages 251-270.
    • Handle: RePEc:taf:oxdevs:v:27:y:1999:i:2:p:251-270
    DOI: 10.1080/13600819908424176
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    Cited by:

    1. Philip Kostov, 2004. "Transition, agricultural decommercialisation, and their implications for quantitative modelling," Others 0409008, University Library of Munich, Germany.
    2. Philip Kostov & John Lingard, 2004. "Block-diagonal representation of a dualistic agricultural economy and its application in formal modelling: the case of Bulgaria," Computational Economics 0409001, University Library of Munich, Germany.
    3. Philip Kostov & John Lingard, 2004. "Subsistence Agriculture in Transition Economies: Its Roles and Determinants," Journal of Agricultural Economics, Wiley Blackwell, vol. 55(3), pages 565-579, November.
    4. J. Mohan Rao & Vamsi Vakulabharanam, 2009. "Agrarian Distress under Global Integration: Impoverishing Growth and “Perverse” Supply Response," QA - Rivista dell'Associazione Rossi-Doria, Associazione Rossi Doria, issue 3, August.
    5. Md Shafiul Azam & Katsushi Imai & Raghav Gaiha, 2012. "Agricultural Supply Response and Smallholders Market Participation: the Case of Cambodia," Economics Discussion Paper Series 1208, Economics, The University of Manchester.
    6. Bezemer, Dirk J., 2004. "Risk and agricultural de-collectivisation, with evidence from the Czech Republic," Economic Systems, Elsevier, vol. 28(1), pages 13-33, March.
    7. Jeffrey D. Vitale & Hamady Djourra & Aminata Sidibé, 2009. "Estimating the supply response of cotton and cereal crops in smallholder production systems: recent evidence from Mali," Agricultural Economics, International Association of Agricultural Economists, vol. 40(5), pages 519-533, September.
    8. Philip Kostov & John Lingard, 2004. "On the nature of Bulgarian subsistence agriculture," Others 0409009, University Library of Munich, Germany.

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