Demonstration models of agrarian structures and agrarian reform
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Any model of agrarian reform must be a gross simplification of the real world in view of the complex interactions between the agrarian structure and the agrarian reform measures which we have briefly reviewed in the previous chapter. This recognized the basic model formulated here is a very modest description of reality and the need to elaborate and refine on it in consecutive steps is obvious. At the present stage, the analysis is greatly facilitated by considering only two groups of farmers: ‘peasants’ and ‘landlords’. The two groups can also be identified generally as poor farmers and rich farmers. Of course, the analysis can be extended to more groups with no difficulty.
KeywordsInterest Rate Endogenous Variable Financial Asset Final Demand Agrarian Reform
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