agricultural economists. Studies explain the time 

 pattern of creation and utilization of a stock of 

 human capital. This process requires that the 

 investor divide his time among three activities — 

 present production, adding to personal ca[ abilities 

 for future production, and current consumption. 



Other studies have inquired into such things as 

 the division of time between schooling (invest- 

 ment) and production or the question of optimal 

 length of schooling, the optimum mix of work and 

 on-the-job training, and determinants of the time 

 of retirement. Human capital stock models are 

 being extended by examining the determinants of 

 health. 



Johnson. Thomas. 1970. A model for returns from inveslment 

 in human capital. Amer. Ec. Review. 60:546-60. 



Palmer. Steven Keith. 1976. An empirical investigation of the 

 determinants of the length of full-time schooling Unpublished 

 dissertation. N. C. State University. Raleigh. N.C. 



Sadik. AM. T. 1975. Investment, work and consumption: A life 

 cycle model. Unpublished dissertation, N. C. State Univ.. 

 Raleigh. N.C. 



Wallace. T. D. and L. A. Ihnen. 1975. Full-time schooling in 

 life cycle models of human capital accumulation. J. of Political 

 Econ. 8.^:1.^7-1.56. 



Demand Theory 



Even though demand theory has received great 

 attention and has become very sophisticated, 

 there are recent developments that appear to hold 

 great promise in understanding the basic choices 

 being made by consumers. The concept has been 

 developed that commodities are demanded to the 

 extent that a given commodity contributes to the 

 attainment of several objectives. Thus food is 

 desired for its nutritional attributes as well as its 

 taste components. 



This notion has given rise to a number of re- 

 search projects that may influence future demand 

 analysis. One is a general modeling of the ap- 

 proach. Another is directed to the nutritional and 

 nonnutritional components of the demand for 

 food items. An example of an additional applica- 

 tion of this basic idea is the component-pricing of 

 fluid milk and of soybeans. 



Ladd. George W. and Veraphol Suvannunt. 1976. A model of 

 consumer goods characteristics. Am. Jour, of Ag. Economics, 

 58:504-510. 



Lancaster. Kelvin. 1971. Consumer demand: A new approach. 

 Columbia Press, New York. 



Prato. A. A. and J. N. Bagali. 1976. Nutrition and nonnutrition 

 components of demand for food items. Am. Jour, of Ag. Eco- 

 nomics. 58:563-567. 



Measurement of Consumer Demand 



The construction of models that investigate 

 price and income effects on consumption of indi- 



vidual agricultural commodities as well as the in- 

 terrelationships among related products made 

 possible a new level of precision in the measure- 

 ment of demand. Studies have provided new in- 

 sights into the complexities of farm product price 

 behavior, improved understanding of the forces at 

 work to influence price fluctuations, and a more 

 adequate base for evaluating agricultural price 

 policy alternatives. These studies produced new 

 procedures for weaving together modern demand 

 theory and the latest econometric methods. Meth- 

 ods have been developed that provide the founda- 

 tion for similar investigations in other countries 

 and for continuing improvement in price and con- 

 sumption models for a large number of products 

 in the United States. 



Brandow. George E. Interrelations among demands for farm 

 products and implications for control of market supply. Penn- 

 sylvania Ag. Exp. Sta. Bulletin 680, University Park. P.'\. 

 Aug, 1961. 



Frisch. R. 1950. A complete schema for computing all direct 

 and cross-demand elasticities in a model with many sectors. 

 Econometrica, 27:177-196. 



George. P. S. and G. A. King. 1971. Consumer demand for 

 food commodities in the United Stales with projections for 

 1980. Giannini Foundation Monograph No. 26, California Agri- 

 cultural Experiment Station, Davis. California. 



Labor Supply 



Past work has spurred the development of eco- 

 nomic theory and modeling of the choices of indi- 

 viduals and household members between market 

 and nonmarket activities. Many of the study ap- 

 proaches that have grown out of the so-called 

 labor-leisure problem are in a stage of develop- 

 ment that should shortly move to the analysis of 

 policies affecting farm people. Three important 

 areas in which recent advances have occurred are 

 market supply of labor by the household mem- 

 bers, farm-nonfarm division of the farmer's work 

 time, and effects of human capital investment on 

 farm productivity. 



Barros, Geraldo Sant'Ana De Camargo. 1977. Asking wages, 

 market wages, and the off-farm labor supply by farm opera- 

 tors. Unpublished dissertation, N. C. State University, Ra- 

 leigh. N. C. 



Becker, G. S. 1965. A theory of the allocation of time. Eco- 

 nomic Journal. 75:495-517. 



Chang, Seok Jung. 1976. An economic analysis of the adoption 

 of new wheat varieties under uncertainty in Ferozepur District 

 (India). Unpublished dissertation. N.C. State University. Ra- 

 leigh. N.C. 



Hsu. Chun-Yang. Forthcoming. Education, production and 

 labor substitution in agriculture. Unpublished dissertation. 

 N.C. State University. Raleigh. N.C. 



AGRICULTURE 



23 



