On Price Liberalization, Poverty and Shifting Cultivation: An Example from Mexico

University of Wisconsin, Land Economics, Vol. 83, No. 2, pp. 192-216, May 2007

Posted: 3 Mar 2008

See all articles by Unai Pascual

Unai Pascual

University of Cambridge - Department of Land Economy

Edward B. Barbier

Colorado State University, Fort Collins - Department of Economics

Abstract

A bioeconomic model is used to explore the potential impacts of price policies on land use under shifting cultivation. The model is calibrated with household level and agroecological data from Yucatan, Mexico. Besides the direct effect of the liberalization of maize prices, the results indicate that changes in real wages in post-NAFTA Mexico may have non-expected effects on the labor diversification and land-use decisions of households. Further, it is shown that income may well be inversely related to both the suboptimal level of forest clearing, and the state of soil fertility, albeit in a non-monotonic (U-shape) way.

JEL Classification: O13, Q24

Suggested Citation

Pascual, Unai and Barbier, Edward B., On Price Liberalization, Poverty and Shifting Cultivation: An Example from Mexico. University of Wisconsin, Land Economics, Vol. 83, No. 2, pp. 192-216, May 2007. Available at SSRN: https://ssrn.com/abstract=1099436

Unai Pascual (Contact Author)

University of Cambridge - Department of Land Economy ( email )

19 Silver Street
Cambridge, CB3 9EP
United Kingdom

HOME PAGE: http://www.landecon.cam.ac.uk/staff/pascual.htm

Edward B. Barbier

Colorado State University, Fort Collins - Department of Economics ( email )

Fort Collins, CO 80523-1771
United States

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