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Modeling Price Response of Farm Households Under Imperfect Labor Markets: A Farm Household Approach to Family Farms in Poland

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  • Henning, Christian H.C.A.
  • Henningsen, Arne

Abstract

In the paper a flexible FHM approach is estimated to model price responses of farm households under imperfect labor markets. In contrast to former studies the model explicitly incorporates simultaneously fixed and variable transaction costs as well as heterogeneity. Main results are: (i) In the general approach non-separability not only occurs if households are autarkic, but also when households participate in labor markets. (ii) Under imperfect labor markets, price responses are ambiguous and differ for the non-separable and separable model. However, econometric analysis indicates only moderate differences between the two models except for crop production for which an inverse supply response is estimated.

Suggested Citation

  • Henning, Christian H.C.A. & Henningsen, Arne, 2005. "Modeling Price Response of Farm Households Under Imperfect Labor Markets: A Farm Household Approach to Family Farms in Poland," 94th Seminar, April 9-10, 2005, Ashford, UK 24431, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae94:24431
    DOI: 10.22004/ag.econ.24431
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    2. Koblianska, Inna & Seheda, Serhii & Khaietska, Olha & Kalachevska, Larysa & Klochko, Tetiana, 2022. "Determinants of potato producer prices in the peasant-driven market: the Ukrainian case," Agricultural and Resource Economics: International Scientific E-Journal, Agricultural and Resource Economics: International Scientific E-Journal, vol. 8(3), June.

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