An Analytical Approach to Economic Behavior of Peasant Family

—Household Strategy—

Abstract

This article aims to present, discuss, and justify the concept of “Household Strategy” for theoretical and empirical studies of economic behaviors of peasant households. The methodological position of the paper will be articulated in contrast with the standard microeconomic formulation of optimizing behavior. In a systematic exposition and articulation of the concept of “Household Strategy”, its constituents are identified as objectives, alternative actions (as means to objectives), and constraints for the household, followed by elaboration of each of these. The objective held by the household is stipulated to be either maintenance or increase of the standard of living. The time scopes for such objectives may be short-term and/or long-term. Alternative actions include productive engagements in agriculture and non-agricultural activities either as owner-operator or as employee, social engagements to maintain and strengthen personal relations, and household activities for the maintenance and promotion of welfare of family members. Constraints comprise technical and managerial capabilities of the household, access to economic, social, and institutional resources, and scope and effectiveness of accessible risk-coping methods and measures. The value and contribution of the analytical viewpoint of “Household Strategy” is illustrated in the analysis of the household decision on participation or otherwise in communal activities and also in the examination of poor households faced with ever-present risk of income decline. The article closes with remarks on the present status of the research and remaining tasks, and also on its possible contributions to the study for participatory policy design and implementation.