The vast majority of business concerns operating in contemporary market oriented economies are owned and controlled by a single individual and perhaps family members. Yet little work has been performed in the area of estimating the choice behavior of self-employed business proprietors, particularly under conditions where production and consumption decisions are interdependent. Lau, Lin, and Yotopolous [16], Barnum and Squire [2], and others have developed models to analyze and estimate the complete choice behavior of farm households in developing nations. These analyses invariably separate production and consumption decisions so that the sole link between the two sides of the model lies in the impact of farm profit on the household budget constraint. This type of separability implicitly assumes the existence of perfect markets for all goods and inputs.' While this assumption may be a valid approximation for many farm households in developing economies, it is not generally applicable to self-employed proprietors, especially those operating in more advanced economies [8; 19; 21; 26]. To my knowledge, only two prior empirical studies have been performed which attempt to analyze the choice behavior of self-employed business proprietors under conditions where production and consumption decisions are interdependent. Brown and Lapan [4] employ aggregate U.S. time series data to estimate physician labor and output supply responses to changes in output price. Their estimation procedure centers on a single reduced form output supply equation. Parameter estimates are interpreted in the context of the theoretical framework assuming constant returns to scale technology and homothetic preferences. They conclude that while the physician labor supply curve is backward bending, the output supply curve is positively sloped. Lopez [19] formulates a model analyzing the interdependent production and labor supply decisions of households that own and operate a farm. His framework integrates output, input, and labor supply choices, and allows for differences in preferences between on-farm and off-farm work. Imposing constant returns to scale and using cross-section Canadian data aggregated by census division, he jointly estimates output supply, input demand, on-farm, and off-farm labor