Can Labor-capital Models Predict the Responses of Agrarian Societies to Development?Part II: Alternative Models

SUMMARY. Part II of this article presents a model that accords with the needs stated in Part I which appeared in the previous issue of this Journal. It noted that development efforts and economics have relied upon two-factor, capital and labor neoclassical economic models . FAailures have occurred when they were applied to agrarian societies where the ownership of land rent dictates particular institutional forms that engender resistance to development. It was argued that there is need for a new three-factor development theory which explicitly models land and its rent. Ideas of Smith, Ricardo, George and Samuelson -were assembled as a basis for a computer simulation model that explores landed institutions and the land value flows resulting from different development strategies.