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Is off-farm income reforming the farm? Evidence from Mexico

Agricultural economics, 2009-03, Vol.40 (2), p.125-138 [Peer Reviewed Journal]

2009 International Association of Agricultural Economists ;ISSN: 0169-5150 ;EISSN: 1574-0862 ;DOI: 10.1111/j.1574-0862.2009.00365.x

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  • Title:
    Is off-farm income reforming the farm? Evidence from Mexico
  • Author: Pfeiffer, Lisa ; López-Feldman, Alejandro ; Taylor, J. Edward
  • Subjects: Agricultural production ; agriculture ; D13 ; D24 ; Household models ; J24 ; O13 ; O15 ; Off-farm income ; Q12 ; Rural Mexico
  • Is Part Of: Agricultural economics, 2009-03, Vol.40 (2), p.125-138
  • Description: Does access to off-farm income complement or compete with agricultural production? This article explores the effect of off-farm income on agricultural production activities, using data from the 2003 Mexico National Rural Household Survey. We first discuss the theoretical conditions under which access to off-farm income may influence production in an agricultural household model. Instrumental-variable (IV) estimation methods are then used to test whether agricultural production activities, technologies, and input use differ between households with and without access to off-farm income. We find that off-farm income has a negative effect on agricultural output and the use of family labor on the farm, but a positive impact on the demand for purchased inputs. There is also a slight efficiency gain in households with access to off-farm income. Findings offer insights into how household production evolves as rural households increasingly engage in off-farm income activities.
  • Publisher: Malden, USA: Blackwell Publishing Inc
  • Language: English;Dutch
  • Identifier: ISSN: 0169-5150
    EISSN: 1574-0862
    DOI: 10.1111/j.1574-0862.2009.00365.x
  • Source: Alma/SFX Local Collection
    RePEc
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