By M. J. Stabler (auth.)
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Additional info for Agricultural Economics and Rural Land-use
The important determinants of demand given in basic texts price, income, the price of other goods, population and tastes give a superficial view of demand, and often the empirical reference is weak. However, some of the pioneering analytical studies of household budgets are extremely searching, both on substantive and methodological planes. These budget analyses concentrated on the establishment of consumption patterns and calculation of elasticities rather than the effect of demand on the determination of market price.
Duesenberry (Income Saving and the Theory of Consumer Behavior (Harvard University Press, 1949)) suggests that it stems from the basic characteristics of different ethnic and income groups offering a semi-sociological explanation, whereas M. Friedman (A Theory of the Consumption Function (Princeton University Press, 1957)), relates it to a notion of 'permanent' income as the crucial determinant of expenditure level rather than current or past income (see Ackley  for a discussion of these theories).
Such models are offered not only as explanations of low wages in agriculture, but also as a means of accounting for both the occupational migration and rate of migration of both farmers and labour , . In addition to quantitative analyses there are many examples of more qualitative explanations leading to prescriptions for speeding up the migration process as a means of raising the level of agricultural incomes. 1 Black  advocates increasing the rate of release of human resources, Johnson  argues that there are too many resources in agriculture, therefore the marginal productivity of labour is lower than in industry and capital returns are unfavourable.