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Rationality is one of the basic underlying assumptions of economic behaviour of an individual, firm or industry. Economic theory rests on and takes as its starting point the assumption that each economic producer tries to maximize his individual gain, that profit motivation governs the behaviour of producers . This assumption is more true in explaining the behaviour of the non-agricultural sector of the economies than that of the agricultural sector. Contents: Introduction, Select Review of Literature and Methodology, Agricultural Economy, Regional Imbalances in Agricultural Growth, The Supply Behaviour of Food and Nonfood Crops, Regional Variations in Supply Behaviour of Major Crops, Summary of Findings.
Microeconomic modeling has been an important tool for agricultural economists for several decades and promises to be important for ad-dressing the research problems of the 1980s as well. This volume explores the possibilities for using micromodeling to analyze how individual farm businesses react to and are affected by farm policies. Although this purpose represents only one potential use of micro-modeling, effective modeling for policy analysis necessitates a broad look from several historical, analytical, and institutional perspectives. The Micromodeling Conference held November 18-20, 1981, at Airlie House, Virginia, under the auspices of the U.S. Department of Agri-culture's Economic Research Service and the Farm Foundation reflected these concerns.
This appendix is a companion volume to the Rice Economy of Asia by Randolph Barker, Robert W. Herdt, with Beth Rose.