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Two-Season Subsistence Farming, Urban Food Subsidies and Optimal Agricultural Policy

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  • Innes, Robert

Abstract

This paper extends the household production literature by developing and analyzing a two-season model of subsistence farm choices wherein the two seasons correspond to times of planting and harvest. Qualitative properties of optimal farm production and storage choices are characterized. In addition, given a government policy of subsidizing urban grain consumption, the government's problem of choosing an optimal (welfare-maximizing) agricultural policy is developed. Under plausible conditions, the optimal policy takes a form that is often observed in developing countries, namely, farm output prices set below relevant international levels and price subsidies provided to farm inputs in both grain production and storage. Copyright 1993 by Royal Economic Society.

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  • Innes, Robert, 1993. "Two-Season Subsistence Farming, Urban Food Subsidies and Optimal Agricultural Policy," Oxford Economic Papers, Oxford University Press, vol. 45(4), pages 668-690, October.
    • Handle: RePEc:oup:oxecpp:v:45:y:1993:i:4:p:668-90
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    Cited by:

    1. Aurélie Darpeix & Céline Bignebat & Philippe Perrier-Cornet, 2014. "Demand for Seasonal Wage Labour in Agriculture: What Does Family Farming Hide?," Journal of Agricultural Economics, Wiley Blackwell, vol. 65(1), pages 257-272, January.
    2. David A. Hennessy & Jutta Roosen, 2003. "A Cost‐Based Model of Seasonal Production with Application to Milk Policy," Journal of Agricultural Economics, Wiley Blackwell, vol. 54(2), pages 285-312, July.

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