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Simple Model of Resource Degradation and Agricultural Productivity in a Subsistence Economy
Author(s) -
Sylwester Kevin
Publication year - 2004
Publication title -
review of development economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.531
H-Index - 50
eISSN - 1467-9361
pISSN - 1363-6669
DOI - 10.1111/j.1467-9361.2004.00224.x
Subject(s) - subsistence agriculture , poverty trap , productivity , economics , natural resource economics , agricultural productivity , poverty , agriculture , trap (plumbing) , resource (disambiguation) , production (economics) , government (linguistics) , land degradation , subsistence economy , agricultural economics , macroeconomics , economic growth , ecology , environmental science , computer network , linguistics , philosophy , environmental engineering , computer science , biology
Resource degradation poses problems in many developing countries. In the model presented in the paper, current agricultural production lowers future land productivity. Since agents must produce to meet current subsistence needs, this can lead to a poverty trap in which land quality is continuously degraded over time. However, the model shows that not all subsistence farmers fall into this trap, although it might be difficult in practice to distinguish among those belonging to each case. The model also demonstrates why government programs such as income transfers, loans, and price controls might have differing effects upon economic outcomes depending upon the specific circumstances of farmers.