Agricultural Household Modelling and Family Economics by FRANCE CAILLAVET, HERVÉ GUYOMARD and ROBERT LIFRAN (Eds.)


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W e derive the d e m a n d functions: η Pi Xi = Pi hi + at (D- Σ Consider the vector characteristics in Ζ of explaining household the for i = Pk bk) k=l lion characteristics. parameters ft. which We include represent these minimal consumption for goods / = 1 to n. W e are using the affine specification: L biß) = c, + Σ d a Z, 1=1 where da are scalar parameters and c. is a constant parameter, specific to good /. 2 T h e reduced f o r m d e m a n d functions a r e : 2 W e a s s u m e in our c r o s s sectional s t u d y that t h e prices in t h e different m a r k e t s w e r e similar e n o u g h to be considered as identical all rural households.

Table 4 shows the results of the C h o w tests. T h e structural change hypothesis is rejected for fire w o o d . It is not systematically accepted for sweet potatoes, other foods and traditional beers, and it is always accepted for other goods. But the results of the test could be weakly robust to the non-linearity of the Engel curves, as the variables describing production are often correlated with total expenditures. Table 4. Results of the Chow test(*) Discriminating variable Goods Value of production Land area Beans yes no Other fruits and vegetables yes no Sweet potatoes no yes Other tubers no yes Traditional beers no no yes yes Fire wood no yes Other non foods no no Other foods (*) test of the structural change at 5 % level, with correction for heteroscedasticity.

The estimation of a complete m o d e l is extremely difficult with a small sample because there are too m a n y parameters and there could be s o m e identification difficulties between these parameters. T h e use of instrumental variables is also delicate for the estimators are only consistent asymptotically. W h e n data permit, c o m p l e x endogeneity p h e n o m e n a in the household behaviour favours the use of the complete model approach. Economic criteria T h e level of disaggregation of the categories of goods and labour could also intervene in the model choice.

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