The choice of Microfinance (MF) by the Millennium Development Goals (MDG) as the primary means of poverty alleviation should have brought clarity to the role and functioning of MF, but instead it seems to have generated a fog. It is desirable to take a fresh look and start from first principles...

The importance of modeling farm households in LDC's as being both producers and consumers of the same good has been recognized for some time. Using a Cobb-Douglas specification for the production function and a linear expenditure system, the paper presents empirical evidence of the linkage...