Abstract:
This paper considers the so-called fallow-cultivation problem in traditional agriculture. The paper specifies the problem and determines the optimal length of the fallow-cultivation cycle. We also show the impact of rising output prices on this cycle. This has been widely discussed in the literature, but we conclude that previous stated results do not hold. The fallow-cultivation problem is an important economic problem, since traditional farming provides the food in most low-income countries. However, it is also worth studying since it is an interesting specimen case in a class of dynamic models in which sensible controls split process variables in distinctive phases.