This article presents a comprehensive review of the Polish farm sector. The main objective is to analyse the causes of its backwardness and slow development. Low remuneration of farm work and the resultant low profitability are the largest problems of many farms. Several causes of the low...

Estimation of the non-linear Constant Elasticity of Scale (CES) function is generally considered problematic due to convergence problems and unstable and/or meaningless results. These problems often arise from a non-smooth objective function with large flat areas, the discontinuity of the CES...

We develop a farm household model to analyze price responses of farm households. This model incorporates various types of transaction costs as well as labor heterogeneity. Nonproportional variable transaction costs or labor heterogeneity imply that production and consumption decisions become...