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Abstract

A linear risk programming model of small farmer decision making was formulated and employed to evauate the impact of new technology on farm organization, income and resource utilization. The model is based substantially on the neo-classical theory of the firm. However, consideration is given to the fact that profit maximizing behaviour is constrained by sub-optional farm-household decisions. In addition to the usual resource and institutional constraints,a safety first constraint on expected net income was incorporated using a MOTAD formulation. The analysis of the results is focussed mainly on the changes in (a) enterprise combination; (b) income levels; and (c) resource utilization. Despite the limitations of the linear programming approach this type of analysis is very useful to guide research and development policies.

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