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MARKETS, institutions and family size in rural Philippine households

Author

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  • Evenson, Robert
  • Roumasset, James

Abstract

In poorly developed market economies, high transactions and related costs, produce a pattern of market organizations with heavy relianceon traditional institutions for handling transactions.The family is one such institution because family ties or bonds allow more efficien, tcontractual arrangementsthan do markets. The family enterprise dominates such economies. In highly developed market economies, market transactions are low cost. Competitive suppliers provide information at low cost..The public sector providesgoods and standards that facilitate transactions.Communication is low cost. In such economies the family enterprise losesits advantage in many sectorsof the economy, and market transactionsdominate economic activity. In this paper we develop a framework for explaining the transition from nonmarket to market institutions. We usethe framework to generatespecific hypotheses which are confronted, in turn, with'evidencefrom the rural Philippines. Our specific focus ison the most pervasive and important of all traditional institutions - the rural household.

Suggested Citation

  • Evenson, Robert & Roumasset, James, 1986. "MARKETS, institutions and family size in rural Philippine households," MPRA Paper 13227, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:13227
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    References listed on IDEAS

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    1. Roumasset, James, 1978. "The new institutional economics and agricultural organization," MPRA Paper 13175, University Library of Munich, Germany.
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    Cited by:

    1. Roumasset, James, 2004. "Rural Institutions, Agricultural Development, and Pro-Poor Economic Growth," Asian Journal of Agriculture and Development, Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA), vol. 1(1), pages 1-20, June.
    2. Bharadwaj, Prashant, 2015. "Fertility and rural labor market inefficiencies: Evidence from India," Journal of Development Economics, Elsevier, vol. 115(C), pages 217-232.
    3. James A. Roumasset, 2002. "The Microeconomics of Agricultural Development in the Philippines," Working Papers 200210, University of Hawaii at Manoa, Department of Economics.
    4. Lanzona, Leonardo & Evenson, Robert E., 1997. "The Effects of Transaction Costs on Labor Market Participation and Earnings: Evidence from Rural Philippines Markets," Center Discussion Papers 28465, Yale University, Economic Growth Center.

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    More about this item

    Keywords

    Institutional Economics;

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • J43 - Labor and Demographic Economics - - Particular Labor Markets - - - Agricultural Labor Markets
    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact

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