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Farm households production theories: a review of institutional and behavioural responses

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  • Mariapia MENDOLA

Abstract

This paper presents a synthesis of the main theoretical and empirical contributions that analyse production choices of farm households living and operating in developing countries. The review is particularly concerned with recent micro-economic contributions that highlight the trade-off farm households typically face, between full-income risk and expected return, while making production decisions in a context of weak financial institutions in low-income settings. The same literature point out how weak institutions and farm households behavioural responses to risk-return trade-off may lead to situations of poverty traps

Suggested Citation

  • Mariapia MENDOLA, 2005. "Farm households production theories: a review of institutional and behavioural responses," Departmental Working Papers 2005-001, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    • Handle: RePEc:mil:wpdepa:2005-001
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    More about this item

    Keywords

    Farm Households; Production Choices; Income Smoothing; Poverty;
    All these keywords.

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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