Aggregate-level of household economics

Compared to the previous version (van Noordwijk, 2002), FALLOW has now explicitly incorporated an open economy by fully integrating household and market, where people can exchange food (with a certain cost associated to any transaction), and by introducing financial capital as second household reserve in addition to the food store. Hence, expected crop yield and expected food demand in the next year is no longer the sole basis to adjust cropping intensity. The monetary reserve derived from marketing other products can be a supplementary or dominant source of food security. Expenditure for non-food purposes can drive decisions to the stage that all available labour is fully utilized. A conservative preference for local food production as security mechanism can be considered in the labour allocation decisions.