Investment in peasant economy: theoretical considerations
Abstract
This paper presents a model based on Marx and Chayanov which explains investment
by the peasant production unit. The paper presents the basis of Marx’s pessimistic
view, and Chayanov’s approach to the peasants’ special propensity for investment. Based
on this discussion an analytical model is formulated which considers the Chayanovian potential
derived from a microeconomic perspective of the peasant, and the limits on peasant
investment in a capitalist system derived from a marxian macroeconomic perspective on the
specific characteristics of petty commodity production. Finally, the paper points to generalizations
which center on the contradictions between real restrictions determined by macro
variables and the subjective potential of the family production and consumption unit, the essential
focus of the interpretation of the diverse forms of the relationship peasant/capitalism.
JEL Classification: Q12; Q10; B51.
Keywords: Rural economics farm investment