Abstract
We use panel data on rice farmers in the Central Luzon provinces of the Philippines between 1970 and 2016 to test for market completeness, following Benjamin (1992) and LaFave and Thomas (2016). We find that markets in this context are incomplete. This suggests that households rely on labor endowments for their labor demand decisions, rather than solely relying on their production technology to make production decisions. Previously, the recursion test has only been used to identify the existence of market completeness in