Khandker, A. Wahhab; Rashid, Salim; Suliman, Osman - In: Journal of Developing Areas 39 (2005) 1, pp. 99-107
This article analyzes a three-sector economy with a significant subsistence sector. Previous studies essentially derived first-best conditions based on an optimal subsidy system where technical efficiency is achieved. In our model, technical efficiency cannot exist from within our system. A...