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Testing for Separability in Household Models with Heterogeneous Behavior: A Mixture Model Approach

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  • Vakis, Renos
  • Sadoulet, Elisabeth
  • de Janvry, Alain
  • Cafiero, Carlo

Abstract

Knowing whether a household behaves according to separability or non-separability is needed for the correct modeling of production decisions. We propose a superior test to those found in the literature on separability by using a mixture distribution approach to estimate the probability that a farm household behaves according to non-separability, and test that the determinants of consumption affect production decisions for households categorized as non-separable. With non-separability attributed to labor market constraints, the switcher equation shows that Peruvian farm households that are indigenous and young, with low levels of education, and lack of local employment opportunities are more likely to be constrained on the labor market.

Suggested Citation

  • Vakis, Renos & Sadoulet, Elisabeth & de Janvry, Alain & Cafiero, Carlo, 2004. "Testing for Separability in Household Models with Heterogeneous Behavior: A Mixture Model Approach," CUDARE Working Papers 25016, University of California, Berkeley, Department of Agricultural and Resource Economics.
  • Handle: RePEc:ags:ucbecw:25016
    DOI: 10.22004/ag.econ.25016
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    Cited by:

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    3. Simtowe, Franklin & Zeller, Manfred, 2006. "The Impact of Access to Credit on the Adoption of hybrid maize in Malawi: An Empirical test of an Agricultural Household Model under credit market failure," MPRA Paper 45, University Library of Munich, Germany.
    4. Mardochée Ngandu Mulotwa & Christian Mabi & Isaac Kalonda & Séraphin Mvudi, 2018. "Labor Demand and Farm Household Welfare Under Non-separability in South Kivu (DRC) [Demande du travail agricole et bien-être des ménages agricoles sous non-séparabilité au Sud-Kivu (RD Congo)]," Working Papers hal-01845493, HAL.
    5. Hayatullah Ahmadzai, 2018. "Factor market participation and tests for separability in Afghanistan," Discussion Papers 2018-10, University of Nottingham, CREDIT.
    6. Useche, Pilar & Blare, Trent, 2012. "Seeds of Gold: How Environmental Considerations Influence Cacao Production Decisions for Small Landholder Households in Northwestern Ecuador," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124738, Agricultural and Applied Economics Association.
    7. Raj Arunachalam & Trevon D. Logan, 2016. "On the heterogeneity of dowry motives," Journal of Population Economics, Springer;European Society for Population Economics, vol. 29(1), pages 135-166, January.
    8. Allen, James E., 2018. "Are agricultural markets more developed around cities? Testing for urban heterogeneity in separability in Tanzania," Food Policy, Elsevier, vol. 79(C), pages 199-212.
    9. Jia, Xiangping & Buchenrieder, Gertrud, 2007. "Documentation of a multi-topic questionnaire-based survey on sustainable resource use in rural China," IAMO Discussion Papers 90856, Institute of Agricultural Development in Transition Economies (IAMO).
    10. Sudha Narayanan & Digvijay S Negi & Tanu Gupta, 2023. "Separability, spillovers, and segmented markets : Evidence from dairy in India," Agricultural Economics, International Association of Agricultural Economists, vol. 54(6), pages 884-899, November.
    11. Christophe Muller, 2014. "A Test of Separability of Consumption and Production Decisions of Farm Households in Ethiopia," Post-Print hal-01463117, HAL.
    12. Useche, Pilar & Blare, Trent, 2013. "Traditional vs. modern production systems: Price and nonmarket considerations of cacao producers in Northern Ecuador," Ecological Economics, Elsevier, vol. 93(C), pages 1-10.
    13. Touhami Abdelkhalek & Fouzia Ejjanoui, 2015. "Tests De Séparabilité dans les Decisioins des Menages Agricoles: Cas du Maroc," Working Papers 955, Economic Research Forum, revised Oct 2015.
    14. Greenwell C MATCHAYA & Pius CHILONDA, 2012. "Estimating Effects Of Constraints On Food Security In Malawi: Policy Lessons From Regressions Quantiles," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 12(2).
    15. Thomas Barré, 2010. "Overemployment, Underemployment and the opportunity cost of time," Working Papers halshs-00452809, HAL.
    16. Blaise Waly BASSE & Amadou Abdoulaye FALL, 2023. "Allocation de la main-d’œuvre dans les exploitations rizicoles au Sénégal," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 57, pages 49-61.
    17. Stefania Lovo, 2012. "Market imperfections, liquidity, and farm household labor allocation: the case of rural South Africa," Agricultural Economics, International Association of Agricultural Economists, vol. 43(4), pages 417-428, July.

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