A Model of Optimal Labour and Soil Use with Shifting Cultivation
University of York (UK) - Derwent College
Edward B. Barbier
University of Wyoming - College of Business - Department of Economics and Finance
FEEM Working Paper No. 83.2001
This paper analyses the relationship between rural poverty and soil degradation in the context of a shifting cultivating community. A deterministic optimal control model demonstrates how a representative household's labour allocation affects the natural resource base on which its livelihood largely depends. The comparative static examination of relevant parameters and welfare effects of changes in the real wage rate are discussed. The theoretical results obtained are calibrated with data from the Yucatan, Mexico.
Number of Pages in PDF File: 55
Keywords: Natural resources, Soil, Mexico
JEL Classification: Q12, Q23, D13, I3working papers series
Date posted: December 4, 2001
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