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Agricultural Household Modelling and Family Economics by FRANCE CAILLAVET, HERVÉ GUYOMARD and ROBERT LIFRAN (Eds.)


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W e a s s u m e that t h e error t e r m s are independent centered Gaussians. T h e variance-covariance matrix is: 1 σ 2 p VP T h e null hypothesis is H0: ρ ρ i = p Ρ ρ = Ω h 0. T h e log-likelihood of this model could be written for a cluster (3 observations): Logf(ug) + Lodl-3p =-(3 / 2)Log2n 2 - p J 3)Logog 2 3 - 4 p ( u x u 2 + 1 / ^ 3 tu2u3))-\-2p - (1 / 2 -(1/2G g)[(u]+u 2+u]) 1 (u\ + ul+ul +uxu2 -hu}u3 +u2u3)] The Role of Production Decisions in Modelling the Consumption Patterns... /45 Undergo, dLog f(ug) φ 2 = — r (uiu2 σ + uius + w h i c h is estimated by ξ, = (uglug2 2(3G-K)~ Σ + (u°J + ug2 + r*w 2 + ug3) (Ks) 2 T h e score test is equivalent to t h e test of the omission of t h e variable: 2(3G- k) in the regression Ygi (u°gi u°g2 + u°gi u°g3 + u°g2 = Xgib+ xgid+ ugi U°g3) 46/Agricultural Household Modelling and Family Economics Annex 3.

T h e use of instrumental variables is also delicate for the estimators are only consistent asymptotically. W h e n data permit, c o m p l e x endogeneity p h e n o m e n a in the household behaviour favours the use of the complete model approach. Economic criteria T h e level of disaggregation of the categories of goods and labour could also intervene in the model choice. O n one hand, the more the nomenclature is disaggregated the more parameters one needs, and a simpler model m a k e s it easier to obtain estimations.

Universite L o v a n i u m , Institut de Recherches E c o n o m i q u e s et Sociales, Louvain. Lluch C , Powell Α. , W i l l i a m s R. , 1977, Patterns in Household Demand and Saving. O x f o r d University Press. Ministere du Plan du Rwanda, 1986, Methodologie de la collecte et de l'echantillonnage de l'Enquete Nationale Budget C o n s o m m a t i o n 1982-83, en milieu rural. 17-34. , 1978, C o n s u m e r Behaviour in Latin A m e r i c a : Income and Spending of Families in Ten A n d e a n Cities, an E C I E L Study.

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