ABSTRACT
Our objective in this chapter is to determine those characteristics of the national agricultural economy that have underlying significance for gaining theoretical understanding of how farm resources are allocated. Economic abstractions based on realistic assumptions with respect to such characteristics should imply, predict, or indicate the operating characteristics. Therefore, it is left mainly to later chapters to examine the correspondence or lack of correspondence between (1) the theoretical consequences of the structural characteristics summarized here, and (2) the operating characteristics. The presence or absence of this correspondence determines the advisability of using the theoretical formulation and empirical analysis presented in this study as a basis for designing changes in U.S. agricultural policies and programs. However, some attention must also be given to operating characteristics at this point to assure a relevant theoretical formulation in the sense that appropriate dependent variables are studied.
