ABSTRACT
This chapter summarizes the fruits of several years of work by Professor Nakajima. Professor Nakajima states the convexity condition for the indifference curves via a set of three assumptions: both leisure and income have positive marginal utility; leisure is a normal good anywhere on the indifference map; and income is a normal good in the same sense. Professor Nakajima's excellent paper deals with the equilibrium of the firm-household complex. In agriculture such a complex is found in the family farm. Turning to the equilibrium income solution, Professor Nakajima shows that an increase in farm prices must lead to some increase in the income of the family regardless of the direction of labor adjustment. A final observation is that, with crude view of the historical process of agricultural reorganization under Malthusian population growth, it would be useful to try to identify subsistence farm areas under severe population pressure and those which allow substantial involuntary leisure, both in the sense explained earlier.
