Agricultural Household Models: Genesis, Evolution, and Extensions

This paper offers a synthesis of agricultural household modeling, its evolution and uses; presents a general yet simple agricultural household model, estimated with Mexican village data and programmed using General Algebraic Modeling System software; and uses this model to explore household-level impacts of agricultural policy changes on production and incomes under alternative rural-market scenarios. We point out limitations of household-farm models in heterogeneous rural economies and discuss how to integrate multiple household models into economy-wide models designed to overcome these limitations.