THEORY OF SUPPLY AND SUPPLY RESPONSE IN TRADITIONAL AGRICULTURE : A CRITICAL REVIEW

Date

1979

Author

Gürkan, A. Aslan

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This review is an attmept to reevaluate the basic features of the bitter controversy concerning the applicability of the neo-classical theory of supply in social structures where «peasant» production processes are predominant. After briefly describing the general characteristics of the dominant epistemology of «modern» economics, a broad evaluation of the «orthodox» theory of supply is undertaken to illustrate the weaknesses of the underlying criteria of verifiabiiity and the difficulties inherent in the interpretation of the results of empirical research. Within the limits of this discussion, reinterpretations of the consistencies observed in the results of supply response research and of the more recent theoretical developments utilising Chayanov's «labour- consumer balance» concept are offered. These suggest that, contrary to received wisdom, it is necessary to theorise about the nature of the intervention of the «non-economic» in the «economic» forms of social relationships to understand fully supply responsiveness in social structures where «peasant» production processes are predominant and that the manipulation of the price mechanism alone will not be sufficient f o r attaining «developmental» policy goals.

URI

https://hdl.handle.net/11511/111047

Collections

Department of Economics, Article