A system comparison approach to distinguish two nonseparable and nonnested agricultural household models.

Estimate t-value t-value [[alpha].sub.f,0] 0.1419 (165.306) {10.515} [[alpha].sub.f,1] 0.0000 (0.011) {0.010} [[alpha].sub.f,2] 0.6502 (23.069) {3.150} [[alpha].sub.f,3] 0.0013 (2.187) {2.039} [[alpha].sub.m,0] 0.5512 (413.561) {104.009} [[alpha].sub.m,1] -0.0207 (-3.915) {-3.789} [[alpha].sub.m,2] -0.6522 (-18.496) {-7.018} [[alpha].sub.m,3] -0.0015 (-1.118) {-0.889} [[alpha].sub.c,0] 0.3068 (180.482) {17.220}

(= 1 [[alpha].sub.f,0] -

[[lapha].sub.m,0] [[alpha].sub.c,1] 0.0206 (3.l89) {3.035}

(= - [[alpha].sub.f,1] -

[[lapha].sub.m,1] [[alpha].sub.c,2] 0.0020 (0.045) {0.016}

(= - [[alpha].sub.f,2] -

[[lapha].sub.m,2] [[alpha].sub.c,3] 0.0001 (0.074) {0.066}

(= - [[alpha].sub.f,3] -

[[lapha].sub.m,3] [[gamma].sub.f,f] 0.0996 (5.722) {2.840} [[gamma].sub.f,m] -0.0869 (-4.735) {-3.688}

(= [[gamma].sub.m,f]) [[gamma].sub.f,c] -0.0128 (-0.532) {-0.442}

(= [[gamma].sub.c,f]) [[gamma].sub.m,m] 0.1982 (5.161) {4.240} [[gamma].sub.m,c] -0.1113 (-2.658) {-2.553}

(= [[gamma].sub.c,m]) [[gamma].sub.c,c] 0.1241 (2.311) {2.055} [[beta].sub.f] 0.0471 (2.618) {1.882} [[beta].sub.m] 0.1246 (4.569) {3.555} [[beta].sub.c] -0.1716 (-4.956) {-4.904}

(= - [[beta].sub.f] -

[[beta].sub.m] Note: The minimized value of the GMM objective function is estimated to be 21.66 with its corresponding p-value 0.117. The coefficients of determination of the share equations for farm and nonfarm work hours are 0.9794 and 0.9716, respectively. Table 4. Estimated Elasticities of Quantity Variables and the Internal Wages for Instrument Set IV -2 (i) Estimates of elasticities [partial derivative]lnQ/[partial derivative]ln [w.sup.*], [partial derivative]lnQ/[partial derivative] ln [w.sup.**], [([partial derivative] ln Q/[partial derivative] ln y).sub.const], and [partial derivative]lnQ/[partial derivative]ln V (y = p, q, r, w) Elasticity with [w.sup.*] respect to ([w.sup.**]) q p Common to [L.sub.f] -1.07 0.25 0.84

HET and RES F 0.55 -2.42 2.19

hypotheses X -0.28 -0.34 0.69 HET hypothesis [L.sup.S.sub.f] 0.38 0.09 -0.57

[L.sub.m] 0.03 0.07 -0.47 RES hypothesis [L.sup.S.sub.t] 0.14 0.12 -0.76 Elasticity with respect to w r V Common to [L.sub.f] 0.00 0.00 0.00

HET and RES F 0.00 0.00 0.00

hypotheses X 0.00 0.00 0.00 HET hypothesis [L.sup.S.sub.f] -0.70 0.46 -0.26

[L.sub.m] -0.50 0.58 -0.21 RES hypothesis [L.sup.S.sub.t] -1.11 1.16 -0.35 (ii) Estimated elasticities of the internal wage and those of quantity variables including internal wage effects under the HET hypothesis Elasticity with respect to q p w r [w.sup.*] 0.11 0.98 0.49 -0.32 [L.sub.f] 0.13 -0.20 -0.52 0.34 F -2.36 2.73 0.27 -0.18 X -0.37 0.41 -0.14 0.09 [L.sup.S.sub.f] 0.13 -0.20 -0.52 0.34 [L.sub.m] 0.08 -0.43 -0.48 0.57 (iii) Estimated elasticities of the internal wage and those of quantity variables including internal wage effects under the RES hypothesis Elasticity with respect to q p w r [w.sup.*] 0.11 1.33 0.92 -0.96 [L.sub.f] 0.13 -0.57 -0.98 1.02 F -2.36 2.92 0.50 -0.52 X -0.37 0.31 -0.26 0.27 [L.sup.S.sub.t] 0.13 -0.57 -0.98 1.02 Note: The expression [([partial derivative] ln Q/[partial derivative] ln y).sub.const] represents the elasticity of quantity variable Q with respect to a market price y with the internal wage fixed.