Demand for On-Farm Permanent Hired Labor in Family Holdings: A Comment

Abstract

This comment critically discusses the theoretical and empirical treatment of corner solutions in the analysis of labor decisions on farm households. As more and more labor decisions are analyzed jointly, the more ambitious becomes the theoretical justification of empirical applications. "Cutting corners" in theoretical models puts the validity of empirical conclusions in doubt. In such cases relying on intuitive theoretical justification of empirical modeling is preferred.Community/Rural/Urban Development,