Subsistence Agriculture in Transition Economies: its Roles and Determinants
In line with recent suggestions about the potential positive effects of subsistence agriculture in fragile economies, this paper discusses and explains the effects of subsistence agriculture with emphasis on transition countries. Some micro-economic models of subsistence agriculture are reviewed and a two-stage decision model, combining risk aversion and transaction costs explanations for subsistence is put forward. The role of subsistence agriculture is addressed in terms of a static comparison to a commercial only agriculture. It is shown that, under some conditions, subsistence can play a stabilising role and have positive impacts on total agriculture. Employing the concept of a subsistence level of consumption, the paper demonstrates that these static effects can be valid in a dynamic perspective, provided additional conditions are met. Policy recommendations and a future research agenda with regard to possible agricultural commercialisation are drawn from the analysis.
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.:
- Dehez, Pierre & Dreze, Jacques, 1988.
"Competitive equilibria with quantity-taking producers and increasing returns to scale,"
Journal of Mathematical Economics,
Elsevier, vol. 17(2-3), pages 209-230, April.
- DEHEZ, Pierre & DREZE, Jacques, "undated". "Competitive equilibria with quantity-taking producers and increasing returns to scale," CORE Discussion Papers RP 819, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Ben-David,D., 1995.
"Convergence Clubs and Subsistence Economies,"
43-95, Tel Aviv.
- Donald J. Brown & Geoffrey Heal, 1979.
"Equity, Efficiency and Increasing Returns,"
Review of Economic Studies,
Oxford University Press, vol. 46(4), pages 571-585.
- Adam Ozanne, 1999. "Perverse supply response in peasant agriculture: A review," Oxford Development Studies, Taylor & Francis Journals, vol. 27(2), pages 251-270.
- Paul Caskie, 2000. "Back to Basics: Household Food Production in Russia," Journal of Agricultural Economics, Wiley Blackwell, vol. 51(2), pages 196-209.
- Hans Löfgren & Sherman Robinson, 1999. "Nonseparable Farm Household Decisions in a Computable General Equilibrium Model," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(3), pages 663-670.
- Plamen Mishev & Philip Kostov, 2004. "Decision making pattern of subsistence farmers in Bulgaria," Others 0409012, EconWPA.
- Philip Kostov, 2004. "Transition, agricultural decommercialisation, and their implications for quantitative modelling," Others 0409008, EconWPA.
- Hans Binswanger, 1980.
"Attitudes toward risk: Experimental measurement in rural india,"
Artefactual Field Experiments
00009, The Field Experiments Website.
- Hans P. Binswanger, 1980. "Attitudes Toward Risk: Experimental Measurement in Rural India," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 62(3), pages 395-407.
- Kornai, Janos, 1992. "The Socialist System: The Political Economy of Communism," OUP Catalogue, Oxford University Press, number 9780198287766, December.
- Sharif, Mohammed, 1986. "The Concept and measurement of subsistence: A survey of the literature," World Development, Elsevier, vol. 14(5), pages 555-577, May.
- Nigel Key & Elisabeth Sadoulet & Alain De Janvry, 2000. "Transactions Costs and Agricultural Household Supply Response," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(2), pages 245-259.
- Seeth, Harm Tho & Chachnov, Sergei & Surinov, Alexander & Von Braun, Joachim, 1998. "Russian poverty: Muddling through economic transition with garden plots," World Development, Elsevier, vol. 26(9), pages 1611-1624, September.
- C. Peter Timmer, 1997. "Farmers and Markets: The Political Economy of New Paradigms," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(2), pages 621-627.
- Aaron S. Edlin & Mario Epelbaum & Walter P. Heller, 1998. "Is Perfect Price Discrimination Really Efficient?: Welfare and Existence in General Equilibrium," Econometrica, Econometric Society, vol. 66(4), pages 897-922, July.
- Sarris, Alexander H & Doucha, Tomas & Mathijs, Erik, 1999. "Agricultural Restructuring in Central and Eastern Europe: Implications for Competitiveness and Rural Development," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 26(3), pages 305-329, August.
When requesting a correction, please mention this item's handle: RePEc:wpa:wuwpot:0410004. 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: (EconWPA)
If references are entirely missing, you can add them using this form.