Central Data Catalog

Citation Information

Type Journal Article - Working Papers
Title Implicit prices and recursivity of agricultural household's decisions
Author(s)
Publication (Day/Month/Year) 1998
URL http://idei.fr/doc/by/magnac/implicit_prices.pdf
Abstract
This paper analyzes the recursivity of consumption and production decisions of agricultural households. The paper demonstrate that a necessary andsu!cient condition of recursivity is that implicit prices of goods that are produced by a household or used as inputs are equal to market prices. This result emphasizes the household specific nature of the recursivity property. For anysample, recursivity could hold for only a fraction of the observations. An empirical illustration, focusing upon the equality of implicit and market prices offamily labour, is undertaken using data from the Côte d*Ivoire. Results indicatethat non recursivity is a common case in this sample.

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