ABSTRACT
Indicators of income change on the macro level must be used to make an assessment. It will be clear that data on income, as long as this is nominal, does not give the right information. Nominal income changes should be corrected for changes in the cost of living. Change in income in the model is mainly the effect of changing or improved agricultural production. Typical indicators for change in income include: change in monetary income; change in demand for 'luxury' goods; change in demand for appropriate agricultural assets; and change in investment for on-farm living conditions in general. This chapter presents a table that indicates that a nominal increase in average wages in the Kyrgyz Republic could not make up for an increase in costs. The potential gainers in income by land and agrarian reform are more likely the inhabitants of the rural areas.
