A Model of the Mixed Households in Yugoslavia
Economic Analysis and Workers' Management, Vol. 2, No. 23, pp. 99-128, 1989
31 Pages Posted: 26 Apr 2011
Date Written: March 1, 1989
Mixed household is a semi-commercial farm earning income from several different sources, including possibly a job in the formal, urban economy. Mixed household has been recognized in development economics literature as an important economic agent, but it has not been a subject of much rigorous, modeling analysis so far. This paper aims to fill this gap in the literature and develop a comprehensive model of economic behavior of a mixed household that takes into account its dual - consumer and producer - role and various constraints to its objective function. The model was motivated by the important role mixed that households played in Yugoslavia, especially during the period 1950-1989. The model yields a number of interesting theoretical predictions that can be used in empirical analyses and/or inform policy towards mixed households in developing countries.
Keywords: household model, mixed households, agricultural farm, Yugoslavia
JEL Classification: D1, H31, P36, P46, Q12, R2
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