Changing environment and structural heterogeneity in agriculture
1985
Boussard, J.M. (Institut National de Recherches Agronomiques (INRA), 78 - Versailles (France))
Agriculture is heterogenous, with respect to sizes as well as to the techniques used by farmers. This is surprising for an economist, because, at least in a liberal framework, competition should select the most efficient sizes and techniques. An explanation of the size heterogeneity is that the production function is homogenous and of degree 1, which implies the absence of economies of scale. But for what concerns the technical heterogeneity, it is necessary to make use of the dynamic interaction between fixed factors, savings, and price levels. A practical implication of the analysis is the difficulty of setting up "a structural agricultural policy" capable of reaching its avowed targets without tremendous budgetary expenditures
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