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Structural adjustment and market imperfections: a stylized village economy-wide model with non-separable farm households

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  • HOLDEN, STEIN T.
  • TAYLOR, J. EDWARD
  • HAMPTON, STEPHEN

Abstract

Village economies and peasant households represent the main link between the economy and the environment in sub-Saharan Africa. The links from the macro level and down to the household level and further to the natural resource base are complex. It may therefore be difficult to predict the impact of macro policies and external shocks on the environment. This paper presents a typology of village economies and village economy-wide models. The framework is applied to a special case where a model is proposed and estimated to examine the impacts of external shocks, including structural adjustment policies, on cash-crop production and chitemene (shifting cultivation) in a remote Zambian village characterized by a missing (or negligible) labour market, input supply constraints, and credit rationing. Our findings indicate that structural adjustment policies, by decreasing the profitability of maize production, may encourage households to increase their chitemene production, resulting in more rapid deforestation.

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Bibliographic Info

Article provided by Cambridge University Press in its journal Environment and Development Economics.

Volume (Year): 4 (1999)
Issue (Month): 01 (February)
Pages: 69-87

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Handle: RePEc:cup:endeec:v:4:y:1999:i:01:p:69-87_00

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Cited by:
  1. Kuiper, Marijke H., 2002. "Endogenous Transaction Costs And Tradability In A Micro Economywide Model - A Stylized Application With Nonseparable Households," 2002 Annual meeting, July 28-31, Long Beach, CA, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) 19832, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  2. Chen, Jing & Rozelle, Scott, 2003. "Market Emergence And The Rise And Fall Of Backyard Hog Production In China," 2003 Annual meeting, July 27-30, Montreal, Canada, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) 21969, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  3. Komarek, Adam M., 0. "Crop diversification decisions: the case of vanilla in Uganda," Quarterly Journal of International Agriculture, Humboldt-Universit├Ąt zu Berlin, Humboldt-Universit├Ąt zu Berlin, vol. 49.
  4. J. Taylor & Irma Adelman, 2003. "Agricultural Household Models: Genesis, Evolution, and Extensions," Review of Economics of the Household, Springer, Springer, vol. 1(1), pages 33-58, January.
  5. J. Edward Taylor, 2012. "A Methodology for Local Economy-Wide Impact Evaluation (LEWIE) of Cash Transfers," Working Papers 99, International Policy Centre for Inclusive Growth.

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