Specific Experience, Household Structure and Intergenerational Transfers: Farm Family Land and Labor Arrangements in Developing Countries
An overlapping generations model incorporating returns to specific experience is used to demonstrate how three salient phenomena in land-scarce developing countries—the predominance of intergenerational family extension, cost advantages of family relative to hired labor, and the scarcity of land sales—may be manifestations of an optimal implicit contract between generations that maximizes the gains from farm-specific, experientially obtained knowledge. A method for estimating the contribution to agricultural profits of the farm experience embodies in elderly kin based on a three-year panel of household data from India is proposed and implemented. Implications of the theory for market transactions in land and for family extension are also tested using individual farm data and time-series information on rainfall. Why is the aged husbandman more skillful in his calling than the younger beginner, but because there is a certain uniformity in the operation of the sun, rain, and earth, towards the production of vegetables; and experience teaches the old practitioner the rules, by which this operation is governed and directed? David Hume [1758, p. 106]
(This abstract was borrowed from another version of this item.)
|Date of creation:||1984|
|Contact details of provider:|| Postal: (612) 625-1222|
Phone: (612) 625-1222
Fax: (612) 625-6245
Web page: http://www.apec.umn.edu/EDC.html
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Kotlikoff, Laurence J & Spivak, Avia, 1981.
"The Family as an Incomplete Annuities Market,"
Journal of Political Economy,
University of Chicago Press, vol. 89(2), pages 372-391, April.
- Laurence J. Kotlikoff & Avia Spivak, 1979. "The Family as an Incomplete Annuities Market," UCLA Economics Working Papers 151, UCLA Department of Economics.
- Laurence J. Kotlikoff & Avia Spivak, 1979. "The Family as an Incomplete Annuities Market," NBER Working Papers 0362, National Bureau of Economic Research, Inc.
- Mark R. Rosenzweig, 1980. "Neoclassical Theory and the Optimizing Peasant: An Econometric Analysis of Market Family Labor Supply in a Developing Country," The Quarterly Journal of Economics, Oxford University Press, vol. 94(1), pages 31-55.
- Dipak Mazumdar, 1959. "The Marginal Productivity Theory of Wages and Disguised Unemployment," Review of Economic Studies, Oxford University Press, vol. 26(3), pages 190-197.
- Schultz, Theodore W, 1975. "The Value of the Ability to Deal with Disequilibria," Journal of Economic Literature, American Economic Association, vol. 13(3), pages 827-846, September.
- Welch, F, 1970. "Education in Production," Journal of Political Economy, University of Chicago Press, vol. 78(1), pages 35-59, Jan.-Feb..
When requesting a correction, please mention this item's handle: RePEc:ags:umedbu:8432. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)
If references are entirely missing, you can add them using this form.