Chapter 28 The macroeconomics of agriculture

PG Ardeni, J Freebairn

Handbook of Agricultural Economics | Published : 2002


The existence of linkages between the agricultural sector and the rest of the economy points to the specificity of that sector and justifies why we can conceive of a macroeconomics of agriculture. The primary sector is characterized by product homogeneity, a pre-condition for the absence of imperfect competition. Also, agricultural prices are subject to seasonal variations. Moreover, farming activities are often carried on by large fractions of the population and are very dispersed on the territory. Finally, production of commodities relies on an irreproducible factor of production - land - whose availability is finite and whose productivity cannot be individually infinitely increased. Given..

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