Journal of Rural Economics

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It is well known that activity analysis is inwardlooking into a firm in contrast to production function analysis, which looks outward into the market even when it deals with a single firm. But activity analysis has not been applied to the empirical analysis of farm households. The reason is that it is very difficult to estimate the unknown utility function in the activity model of the farm household, which is formulated as a utility maximization problem with linear inequality constraints. In this paper, we present a nonparametric estimation method of a unique, unknown utility function using observation data on constraint conditions and the corresponding optimal level of activity. We also present a method of maximizing the estimated utility function under any linear inequality constraints. By applying the two methods mentioned above, we can conduct some analyses, test observation data for consistency with the activity model of the farm household, estimate the marginal valuation of endowed resources and make a comparative static analysis. A case study of simple experimental problems proves the usefulness of our methods. Finally, implications of this paper and problems to be solved in the future are summarized.

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This study investigates the economic factors that determined completion of the cooperative sales system for beer barley. The cooperative sales system for beer barley was concluded by the " Hasumi-Yamamoto Agreement. " Previously, in the process of concluding the " Hasumi Yamamoto Agreement, " the significance of political negotiations was emphasized. However, the contracted cultivation of beer barley became stagnant in Western Japan during the period of high economic growth. On the other hand, the brewery industry experienced a shortage of beer barley because the consumption of beer increased rapidly. To avoid a decline in the contracted cultivation of beer barley, breweries had no choice but to comply with the request for the cooperative sales system proposed by the National Marketing Federation of Agricultural Co-operative Associations.

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