ABSTRACT
In conditions of perfect markets for domestic factors, individuals are expected to allocate their work efforts so as to equalize the marginal return to agricultural work, the wage rate available from off-farm work, and the marginal value of leisure time. These relations form the basis for a definition of efficient resource allocation by the farm family. This result can be shown with a simple household model. The household maximizes a utility function defined over commodities and leisure, subject to constraints of agricultural production technology, income and expenditure, and the availability of time.
