Professor Inderjit Lyn Singh's Agricultural Household Models: Extensions, Applications, and PDF

By Professor Inderjit Lyn Singh

ISBN-10: 0801831490

ISBN-13: 9780801831492

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Extra info for Agricultural Household Models: Extensions, Applications, and Policy

Example text

Use information on the underlying structure of preferences to calculate equivalent or compensating variation. The percentage change in real income among the six countries under consideration is less than the percentage change in either the output price or the fertilizer price (table 1-4). In addition, it appears that the loss in real income arising from a given percentage reduction in the output price can be offset only if the price of fertilizer is reduced by a much larger percentage. In Malaysia, for example, a 10 percent reduction in output price whereas a 10 percent rewould reduce real income by almost 7 percent, duction in the price of fertilizer would increase real income by only about 1 percent.

THE BASIC 31 MODEL Table 1-4. Effect on Real Income of Changes in Output and Fertilizer Prices EconomyTaiwan Malaysia Korea,Rep. 03 - - Not applicable. Fertilizer is barely used in the Sierra Leone and northern Nigeria samples and therefore was not modeled. use information on the underlying structure of preferences to calculate equivalent or compensating variation. The percentage change in real income among the six countries under consideration is less than the percentage change in either the output price or the fertilizer price (table 1-4).

The percentage change in real income among the six countries under consideration is less than the percentage change in either the output price or the fertilizer price (table 1-4). In addition, it appears that the loss in real income arising from a given percentage reduction in the output price can be offset only if the price of fertilizer is reduced by a much larger percentage. In Malaysia, for example, a 10 percent reduction in output price whereas a 10 percent rewould reduce real income by almost 7 percent, duction in the price of fertilizer would increase real income by only about 1 percent.

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Agricultural Household Models: Extensions, Applications, and Policy by Professor Inderjit Lyn Singh


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