This paper estimates land use responses of households to relative output prices and wages, using panel data from the Philippines. We present multi-output profit maximizing model to elicit the role of relative prices on land allocation between crops and fallowing. We estimate systems of random...

Like many LDCs, the Philippines pursued a food security strategy in which self-sufficiency and price stabilisation feature prominently. In addition to their widely debated welfare effects, food policies based on price and trade restrictions may also accelerate land degradation by promoting...