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Endogenous norms and preferencesand the farm income problem

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  • Rein Haagsma

Abstract

A two-sector model with non-overlapping generations is presented, where rural occupational mobility is hampered by endogenous norms and preferences. The occupational choice of farm youths may be influenced by an inherited belief in the farming way of life and a related social norm that sanctions mobility. This results in a bias towards farming occupations which, via preference formation, tends to promote the norm across generations. The model is used to explain various stylised facts of the farm problem, such as low farm incomes, small holdings and crowding on the land. By showing how these phenomena are mitigated by individualisation and increased integration of farmers into non-farming societies, an explanation is offered as to why the farm income problem has diminished. Copyright 2005, Oxford University Press.

Suggested Citation

  • Rein Haagsma, 2005. "Endogenous norms and preferencesand the farm income problem," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 32(1), pages 25-49, March.
    • Handle: RePEc:oup:erevae:v:32:y:2005:i:1:p:25-49
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    Cited by:

    1. Luigi Aldieri & Gennaro Guida & Maxim Kotsemir & Concetto Paolo Vinci, 2019. "An investigation of impact of research collaboration on academic performance in Italy," Quality & Quantity: International Journal of Methodology, Springer, vol. 53(4), pages 2003-2040, July.
    2. Rocchi, B & Marino, M & Severini, S, 2018. "Does a farm household income problem still exist in the European Union?," 2018 Seventh AIEAA Conference, June 14-15, Conegliano, Italy 275653, Italian Association of Agricultural and Applied Economics (AIEAA).
    3. Aldieri, Luigi & Kotsemir, Maxim & Vinci, Concetto Paolo, 2018. "The impact of research collaboration on academic performance: An empirical analysis for some European countries," Socio-Economic Planning Sciences, Elsevier, vol. 62(C), pages 13-30.
    4. Benedetto Rocchi & Maria Marino & Simone Severini, 2021. "Does an Income Gap between Farm and Nonfarm Households Still Exist? The Case of the European Union," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 43(4), pages 1672-1697, December.
    5. Luigi Aldieri & Maxim N. Kotsemir & Concetto Paolo Vinci, 2020. "The Effects of Collaboration on Research Performance of Universities: an Analysis by Federal District and Scientific Fields in Russia," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 11(2), pages 766-787, June.
    6. Aleksander Grzelak, 2022. "The income-assets relationship for farms operating under selected models in Poland," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 68(2), pages 59-67.

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