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MARKETS, institutions and family size in rural Philippine households

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Author Info

  • Evenson, Robert
  • Roumasset, James

Abstract

In poorly developed market economies, high transactions and related costs, produce a pattern of market organizations with heavy relianceon traditional institutions for handling transactions.The family is one such institution because family ties or bonds allow more efficien, tcontractual arrangementsthan do markets. The family enterprise dominates such economies. In highly developed market economies, market transactions are low cost. Competitive suppliers provide information at low cost..The public sector providesgoods and standards that facilitate transactions.Communication is low cost. In such economies the family enterprise losesits advantage in many sectorsof the economy, and market transactionsdominate economic activity. In this paper we develop a framework for explaining the transition from nonmarket to market institutions. We usethe framework to generatespecific hypotheses which are confronted, in turn, with'evidencefrom the rural Philippines. Our specific focus ison the most pervasive and important of all traditional institutions - the rural household.

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File URL: http://mpra.ub.uni-muenchen.de/13227/
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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 13227.

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Date of creation: 1986
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Publication status: Published in Journal of Philippine Development 23.18(1986): pp. 141-162
Handle: RePEc:pra:mprapa:13227

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Keywords: Institutional Economics;

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References

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  1. Roumasset, James, 1978. "The new institutional economics and agricultural organization," MPRA Paper 13175, University Library of Munich, Germany.
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Cited by:
  1. Leonardo A. Lanzona & Robert E. Evenson, 1997. "The Effects of Transactions Costs on Labor Market Participation and Earnings: Evidence from Rural Philippine Markets," Working Papers, Economic Growth Center, Yale University 790, Economic Growth Center, Yale University.
  2. Roumasset, James, 1. "Rural Institutions, Agricultural Development, and Pro-Poor Economic Growth," Asian Journal of Agriculture and Development, Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA), Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA), vol. 1(1).
  3. James A. Roumasset, 2002. "The Microeconomics of Agricultural Development in the Philippines," Working Papers, University of Hawaii at Manoa, Department of Economics 200210, University of Hawaii at Manoa, Department of Economics.

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