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Household Inventories and Marketed Surplus in Semisubsistence Agriculture
Author(s) -
Renkow Mitch
Publication year - 1990
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/1243036
Subject(s) - comparative statics , economics , agriculture , consumption (sociology) , agricultural economics , value (mathematics) , microeconomics , geography , social science , archaeology , machine learning , sociology , computer science
A model of semisubsistence agriculture explicitly accounting for the ability of farm households to hold inventories of staple foods is developed. Comparative statics analysis highlights the potential importance of wealth effects attributable to price‐induced changes in the value of household inventories. Empirical results for three groups of households in an Indian village confirm that failure to account for household inventories leads to an overstatement of the responsiveness of both consumption demand and marketed surplus.