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By Bruce L. Gardner, Gordon C. Rausser

The subject material of agricultural economics has either broadened and deepened and the chapters of this guide current leading edge paintings within the box. This quantity includes sections on ''agriculture, average assets and the environment'' and ''agriculture within the macroeconomy''. quantity 2B completes the guide with a piece on ''agriculture and foodstuff policy''. even supposing agricultural economists have continuously paid awareness to those issues, study dedicated to them has elevated considerably in scope in addition to intensity in recent times

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Sanchez, E (1976), Properties and Management of Soils in the Tropics (Wiley, New York). , L. Squire and J. Strauss (1985), Agricultural Households: Extensions and Applications (The Johns Hopkins University Press, Baltimore, MD). Stiglitz, J. (1974), "Incentives and risk-sharing in sharecropping", Review of Economic Studies 41:219-255. , M. Mortimore and E Gichuld (1994), More People, Less Erosion: Environmental Recovery in Kenya (J. Wiley, New York). , and M. ", Paper presented at the Regional Symposium on "Montana mainland Asia in transition" (Chiang Mai, Thailand).

Taylor (1995), "Trade and transboundary pollution", American Economic Review 85(2):675-740. , and W. Oates (1992), "Environmental economics: A survey", Journal of Economic Literature 30(2):675-740. , M. Fafchamps and E. Sadoulet (1991), "Peasant household behavior with missing markets: Some paradoxes explained", Economic Journal 101:1400-1417. Demsetz, H. (1967), "Towards a theory of property rights", American Economic Review 57:347-359. Diewert, W. (1973), "Functional forms for profit and transformation functions", Journal of Economic Theory 9:284-316.

Agricultural technology is then a set T = {(y, q, x): x can produce (y, q)}. The output-oriented model represents this technology using a joint cost function for agricultural output and environmental quality C(y, q, w) = min{wx: (y, q, x) e T}, where w is a vector of input prices. Let U(y, q) represent society's gross benefit from the consumption of agricultural output and environmental quality. We assume that these benefits are strongly separable from other forms of consumption or, equivalently, that the agricultural sector accounts for a share of the overall economy sufficiently small that income effects are negligible.

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