Algunos factores que afectan la asignación de recursos entre agricultura y ganadería

Abstract

The aim of this article is to analyze the influence that may be exercised upon the allocation of resources between crop and beef production by two elements: livestock as a restorer of soil fertility and the greater risk due to meteorological reasons in crop production if compared with beef production. It is understood that this presence can explain, partly at least, some entrepreneurs'behaviour some authors have called "irrational". It is shown that both factors can contribute to explain the presence of a lower rate of profits in beef production than in crop production as well as a higher allocation of resources towards the first than there would be in their absence. Finally, there is an analysis of how an insurance system covering the meteorological risk would lead to employing a greater quantity of inputs and, ceteris paribus, increasing production of the insured activity.