Uncertainty in a Model of Small Agriculture in Peru: Some Preliminary Results

  • Hans Jürgen Jaksch


There seems to be a growing appreciation that small agriculture is composed of economic units, or, as we also prefer to say in lack of a better terminology, of economic organizations which defy to be subsumed under the heading of conventional microeconomic models, private households or enterprises. Thus, in a voluminous book edited by Hoff .et al (1993) the characteristics of these organizations are treated from a theoretical and empirical point of view, apparently exhaustively. On the other hand, there are even textbooks filling this apparent gap in the economic literature (for example, Ellis 1988). However, if one settles down to study the behaviour of this sector of the economy in a certain empirical context, one is overwhelmed by the inability of the literature to explain fully the observed behaviour of the observed facts. To my taste, the first of the mentioned volumes treats too many, and the second one not enough aspects proper to small agriculture. If this is state of the art in the respective field of economics, it has the practical consequence that the economist can give little meaningful advice on what economic policy measures should be undertaken towards this sector of the economy. These could be measures to incorporate this sector further into the existing economic structure, or at least to avoid its further separation from it. The impact of these policy measures could in the extreme be world-wide, since it is small agriculture which in Peru produces the raw material for one of the most important drugs in illegal international drug traffic, cocaine.


Utility Function Wage Rate Marginal Product Small Agriculture Family Farm 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.


  1. Behrman, J. and J.A. Hanson (1979) ‘The Use of Econometric Models in Developing Countries’, in: National Bureau of Economic Research’, Short-term Macroeconomic Policy in Latin America. (Proceedings of a Conference held in Isla Contadora, Panama, 31 October – 2 November 1975) (New York: NBER) pp. 1–38.Google Scholar
  2. Ellis, F. (1988) Peasant Economics, Farm households and agrarian development (Cambridge: Cambridge University Press).Google Scholar
  3. Gonzales de Olarte, E. (1994) ‘En las fronteras del mercado’, Economía política del campesinado en el Perú (Lima: Instituto de Estudios Peruanos).Google Scholar
  4. ——, R. Hopkins, B. Kervyn, J. Alvarado and R. Barrantes (1987) La lenta modernización de la economía campesina. Diversidad, cambio técnico y crédito en la agricultura andina (Lima: Instituto de Estudios Peruanos).Google Scholar
  5. Harris, J.R. and M.P. Todaro (1970) ‘Migration, Unemployment and Development: A Two-Sector Analysis’, American Economic Review, vol. 60, pp. 126–42.Google Scholar
  6. Hoff, Karla .et al (eds) (1993) The Economics of Rural Organization: Theory, Practice and Policy (Oxford University Press).Google Scholar
  7. Morales, E. (1989) Cocaine — White Gold Rush in Peru (Tucson: University of Arizona Press).Google Scholar
  8. World Bank (1994) ‘Peru At the Crossroads: Building a Modern State’ (Mimeo, 31 March 1994).Google Scholar

Copyright information

© Palgrave Macmillan, a division of Macmillan Publishers Limited 1998

Authors and Affiliations

  • Hans Jürgen Jaksch

There are no affiliations available

Personalised recommendations