Macro - Economic aspects of the agricultural sector in the context of a decentralized mature economy
Part of : Αρχείον οικονομικής ιστορίας ; Vol.XIII, No.1, 2001, pages 101-114
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101-114
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Within the framework of a developed economy, the operations of the agricultural sector are problematic. The main problem is that for historical reasons, it (the agricultural sector) uses more resources -mainly labor- than what is required. This fact, in combination with:a) The low income enjoyed by farmers due to their inability to maintain profits from an increase in productivity,b) Large income imparities among farmers, which in many cases are intensified instead of being reduced by structural policies,c) The inelasticity in the demand for agricultural products with respect to prices, which explains the existence of great instability in the income of farmers,d) The inability of the agricultural sector to enjoy the benefits from the establishment of a monopoly, leads to the need to intervene in the agricultural sector in order to curtail the above structural tendencies. This venture in reality is very expensive.
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