Market Price Effects of Technological Change on Income Distribution in Semisubsistence Agriculture

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Abstract
The impact of a technologically induced rightward shift in the supply function of a commodity grown and partly consumed by semisubsistence farmers is examined. In closed‐economy, free market situations, the distribution of economic gains between consumers and producers depends on the proportional shift of the supply function, proportion of the commodity marketed, and elasticities of demand and supply for the commodity. Differences in adoption and marketable surplus between large and small farmers result in differential benefits, but over a range of parameter values, small farmers gain as much or more than large farmers when supply shifts faster than demand.

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