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	Agricultural Household Model	Partial Budget Analysis
Ämnesområde	Food Agriculture Studies	Food Agriculture Studies
Familj	Regression model	Process / pipeline
Ursprungsår	1986	1988
Upphovsperson	Inderjit Singh, Lyn Squire & John Strauss	CIMMYT Economics Program
Typ	Structural production-consumption household model with separability testing	Marginal partial-budgeting pipeline for a single farm change
Ursprungskälla	Singh, I., Squire, L., & Strauss, J. (Eds.). (1986). Agricultural Household Models: Extensions, Applications, and Policy. Baltimore: Johns Hopkins University Press for the World Bank. ISBN: 9780801932489	CIMMYT Economics Program. (1988). From Agronomic Data to Farmer Recommendations: An Economics Training Manual (Completely Revised Edition). Mexico, D.F.: International Maize and Wheat Improvement Center (CIMMYT). ISBN: 9789686127188
Alias	Farm Household Model, Singh-Squire-Strauss Model, Non-Separable Household Model, Agricultural Household Production-Consumption Model	Partial Budgeting, Farm Partial Budget, Marginal Budget Analysis, CIMMYT Partial Budget
Närliggande	3	3
Sammanfattning	The agricultural household model treats the farm household as a single unit that is simultaneously a producer and a consumer, choosing how much to grow, how much labour to hire or supply, and how much to consume — decisions that ordinary firm theory and consumer theory treat as separate. Synthesised in Singh, Squire, and Strauss's 1986 World Bank volume, the model's central result is conditional: when all markets (especially for labour) function perfectly, the household's problem is recursive — it maximises farm profit first and then spends that profit like any consumer, so production decisions are independent of preferences. But when markets fail, the two sides fuse: a shadow wage replaces the market wage and household composition begins to drive production. Whether that separation holds is an empirical question, and Benjamin's 1992 Econometrica test is the canonical way to answer it.	Partial budget analysis is a marginal method of farm management economics that evaluates the profitability of a single, well-defined change to a farm plan — adopting a new variety, adding an irrigation, switching a feed ration — without rebuilding the whole-farm budget. Codified for agronomic recommendation work in the CIMMYT Economics Program's 1988 manual From Agronomic Data to Farmer Recommendations, it rests on a simple insight: only the costs and revenues that actually change need to be counted. The analyst arranges those changes into four cells — added revenue and reduced costs on the positive side, reduced revenue and added costs on the negative side — and the net of the two columns is the change in profit attributable to the change alone.