Cross-sector labor reallocation is associated with costs at the micro level ranging from the costs of geographical relocation and skill change/adaptation to unemployment. We show that monotonous reallocation paths minimize the aggregate reallocation costs in the three-sector framework (relating...

Although the policy impacts on farms accumulate year by year, most farm decision models focus on short-term decisions, evaluating policies based on snapshots. Structural changes are gradually built; therefore, farm decision models should consider the sequences within the period under study....