Problems of Econometric Regional Agricultural Planning Methods in Narrow Region (Small Organizations)

Abstract

Studies on methods of regional agricultural planning has been done from multi sides. The purpose of this paper is to pick up studies which treat production planning of narrow region with econometric methods (mathematical programmings) and consider their problems from a standpoint of their availability. In this process, an idea of Dr. Taira Yori is useful. The idea is concerned with conditions for groups to be able to organize and continue, and consists of three terms. As a result, it has become clear for the past studies not to reflect on the conditions and not to be useful actually.
Then I made up a LP model which reflects on the conditions. It is a equilibrium model among four farms. The aim lies in increasing total farm income by means of mutual employments among them. By solving it, a optimal solution which satisfies impartial distribution of increased income among the farms was gained. But the solution can't still be practiced. Because there is a transaction cost problem behind. The problem will be considered with other paper.