IDEAS home Printed from https://ideas.repec.org/a/eee/wodepe/v22y2021ics2452292921000308.html
   My bibliography  Save this article

From coupon to calories: Assessing input coupon impact on household food calories production

Author

Listed:
  • Hodjo, Manzamasso
  • Dalton, Timothy
  • Nakelse, Tebila
  • Acharya, Ram N
  • Blayney, Don

Abstract

The primary objective of most farm households in Malawi is to secure sufficient food for their own needs. In this paper we assess the impact of farm input subsidy vouchers on household food caloric production. We used pooled cross-sectional household data from the 2010, 2013, 2016 and 2019 Malawian Living Standards Measurement Study and Integrated Survey on Agriculture (LSMS-ISA) to fit a two-stage panel fixed effect model under an endogenous treatment assignment setting. Our findings suggest that benefits from an existing input coupon positively affect household food calories production. Also, we found the flexible coupon traded for either compound fertilizer, urea, or improved maize seed to have the greatest impact. Furthermore, larger farm holders and coupons receivers in 2019 had the highest coupon impact on caloric production. Expanding subsidy programs could result in improved food availability for farming households.

Suggested Citation

  • Hodjo, Manzamasso & Dalton, Timothy & Nakelse, Tebila & Acharya, Ram N & Blayney, Don, 2021. "From coupon to calories: Assessing input coupon impact on household food calories production," World Development Perspectives, Elsevier, vol. 22(C).
  • Handle: RePEc:eee:wodepe:v:22:y:2021:i:c:s2452292921000308
    DOI: 10.1016/j.wdp.2021.100316
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S2452292921000308
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.wdp.2021.100316?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Sibande, Lonester & Bailey, Alastair & Davidova, Sophia, 2017. "The impact of farm input subsidies on maize marketing in Malawi," Food Policy, Elsevier, vol. 69(C), pages 190-206.
    2. Jayne, Thomas S. & Mason, Nicole M. & Burke, William J. & Ariga, Joshua, 2018. "Review: Taking stock of Africa’s second-generation agricultural input subsidy programs," Food Policy, Elsevier, vol. 75(C), pages 1-14.
    3. Maddala, G S, 1983. "Methods of Estimation for Models of Markets with Bounded Price Variation," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 24(2), pages 361-378, June.
    4. Wossen, Tesfamicheal & Abdoulaye, Tahirou & Alene, Arega & Feleke, Shiferaw & Ricker-Gilbert, Jacob & Manyong, Victor & Awotide, Bola Amoke, 2017. "Productivity and Welfare Effects of Nigeria's e-Voucher-Based Input Subsidy Program," World Development, Elsevier, vol. 97(C), pages 251-265.
    5. Channing Arndt & Karl Pauw & James Thurlow, 2016. "The Economy-wide Impacts and Risks of Malawi's Farm Input Subsidy Program," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 98(3), pages 962-980.
    6. Chanda, Anup & Maddala, G. S., 1983. "Methods of estimation for models of markets with bounded price variation under rational expectations," Economics Letters, Elsevier, vol. 13(2-3), pages 181-184.
    7. Ellis, Frank & Mdoe, Ntengua, 2003. "Livelihoods and Rural Poverty Reduction in Tanzania," World Development, Elsevier, vol. 31(8), pages 1367-1384, August.
    8. Bezu, Sosina & Kassie, Girma T. & Shiferaw, Bekele & Ricker-Gilbert, Jacob, 2014. "Impact of Improved Maize Adoption on Welfare of Farm Households in Malawi: A Panel Data Analysis," World Development, Elsevier, vol. 59(C), pages 120-131.
    9. Jacob Ricker-Gilbert & T. S. Jayne, 2017. "Estimating the Enduring Effects of Fertiliser Subsidies on Commercial Fertiliser Demand and Maize Production: Panel Data Evidence from Malawi," Journal of Agricultural Economics, Wiley Blackwell, vol. 68(1), pages 70-97, February.
    10. Ellis, Frank & Bahiigwa, Godfrey, 2003. "Livelihoods and Rural Poverty Reduction in Uganda," World Development, Elsevier, vol. 31(6), pages 997-1013, June.
    11. Talip Kilic & Edward Whitney & Paul Winters, 2015. "Decentralised Beneficiary Targeting in Large-Scale Development Programmes: Insights from the Malawi Farm Input Subsidy Programme," Journal of African Economies, Centre for the Study of African Economies, vol. 24(1), pages 26-56.
    12. Asfaw, Solomon & Cattaneo, Andrea & Pallante, Giacomo & Palma, Alessandro, 2017. "Improving the efficiency targeting of Malawi's farm input subsidy programme: Big pain, small gain?," Food Policy, Elsevier, vol. 73(C), pages 104-118.
    13. Carlos A. Flores & Xuan Chen, 2018. "Average Treatment Effect Bounds with an Instrumental Variable: Theory and Practice," Springer Books, Springer, number 978-981-13-2017-0, December.
    14. Dionne, Kim Yi & Horowitz, Jeremy, 2016. "The Political Effects of Agricultural Subsidies in Africa: Evidence from Malawi," World Development, Elsevier, vol. 87(C), pages 215-226.
    15. Ellis, Frank & Kutengule, Milton & Nyasulu, Alfred, 2003. "Livelihoods and Rural Poverty Reduction in Malawi," World Development, Elsevier, vol. 31(9), pages 1495-1510, September.
    16. Ricker-Gilbert, Jacob E. & Mason, Nicole M. & Jayne, Thomas S. & Darko, Francis Addeah & Tembo, Solomon, 2013. "What are the effects of input subsidy programs on equilibrium maize prices? Evidence from Malawi and Zambia," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 149259, Agricultural and Applied Economics Association.
    17. Basurto, Maria Pia & Dupas, Pascaline & Robinson, Jonathan, 2020. "Decentralization and efficiency of subsidy targeting: Evidence from chiefs in rural Malawi," Journal of Public Economics, Elsevier, vol. 185(C).
    18. Stein Holden & Rodney Lunduka, 2012. "Do fertilizer subsidies crowd out organic manures? The case of Malawi," Agricultural Economics, International Association of Agricultural Economists, vol. 43(3), pages 303-314, May.
    19. Rodney Lunduka & Jacob Ricker-Gilbert & Monica Fisher, 2013. "What are the farm-level impacts of Malawi's farm input subsidy program? A critical review," Agricultural Economics, International Association of Agricultural Economists, vol. 44(6), pages 563-579, November.
    20. Chibwana, Christopher & Shively, Gerald & Fisher, Monica & Jumbe, Charles & Masters, William A., 2014. "Measuring the impacts of Malawi’s farm input subsidy programme," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 9(2), pages 1-16, April.
    21. Jacob Ricker-Gilbert & Nicole M. Mason & Francis A. Darko & Solomon T. Tembo, 2013. "What are the effects of input subsidy programs on maize prices? Evidence from Malawi and Zambia," Agricultural Economics, International Association of Agricultural Economists, vol. 44(6), pages 671-686, November.
    22. Mazunda, John, 2013. "Budget allocation, maize yield performance, and food security outcomes under Malawi’s farm input subsidy programme:," MaSSP policy notes 17, International Food Policy Research Institute (IFPRI).
    23. Aparajita Goyal & John Nash, 2017. "Reaping Richer Returns [Obtenir de meilleurs résultats]," World Bank Publications - Books, The World Bank Group, number 25996, December.
    24. T.S. Jayne & Shahidur Rashid, 2013. "Input subsidy programs in sub-Saharan Africa: a synthesis of recent evidence," Agricultural Economics, International Association of Agricultural Economists, vol. 44(6), pages 547-562, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Camara, Alhassane & Savard, Luc, 2023. "Impact of agricultural input subsidy policy on market participation and income distribution in Africa: A bottom-up/top-down approach," Economic Modelling, Elsevier, vol. 129(C).
    2. Mwale, Martin & Smith, Anja & von Fintel, Dieter, 2022. "Child nutrition and farm input subsidies: The complementary role of early healthcare and nutrition programs in Malawi," Food Policy, Elsevier, vol. 113(C).
    3. Junpeng Li & Puneet Vatsa & Wanglin Ma, 2023. "Small Acts With Big Impacts: Does Garbage Classification Improve Subjective Well-Being in Rural China?," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 18(3), pages 1337-1363, June.
    4. Ganiyou, Ismaïla & Yovo, Koffi, 2022. "Effect of targeted fertiliser subsidy on poverty reduction in Togo," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 17(3), September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Fujimoto, Takefumi & Suzuki, Aya, 2021. "Do Fertilizer and Seed Subsidies Strengthen Farmers' Market Participation? the Impact of Tanzania NAIVS on Farmers' Purchase of Agricultural Inputs and Their Maize-Selling Activities," 2021 Conference, August 17-31, 2021, Virtual 315044, International Association of Agricultural Economists.
    2. Jayne, Thomas S. & Mason, Nicole M. & Burke, William J. & Ariga, Joshua, 2018. "Review: Taking stock of Africa’s second-generation agricultural input subsidy programs," Food Policy, Elsevier, vol. 75(C), pages 1-14.
    3. Mwale, Martin Limbikani, 2022. "Unintended consequences of farm input subsidies: women’s contraceptive usage and knock-on effects on children," MPRA Paper 112689, University Library of Munich, Germany.
    4. Nicole M. Mason & Ayala Wineman & Solomon T. Tembo, 2020. "Reducing poverty by ‘ignoring the experts’? Evidence on input subsidies in Zambia," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 12(5), pages 1157-1172, October.
    5. Holden, Stein T., 2018. "The Economics of Fertilizer Subsidies," CLTS Working Papers 9/18, Norwegian University of Life Sciences, Centre for Land Tenure Studies, revised 16 Oct 2019.
    6. Harou, Aurélie P., 2018. "Unraveling the effect of targeted input subsidies on dietary diversity in household consumption and child nutrition: The case of Malawi," World Development, Elsevier, vol. 106(C), pages 124-135.
    7. Mwale, Martin & Smith, Anja & von Fintel, Dieter, 2022. "Child nutrition and farm input subsidies: The complementary role of early healthcare and nutrition programs in Malawi," Food Policy, Elsevier, vol. 113(C).
    8. Sylvester Amoako Agyemang & Tomáš Ratinger & Miroslava Bavorová, 2022. "The Impact of Agricultural Input Subsidy on Productivity: The Case of Ghana," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 34(3), pages 1460-1485, June.
    9. Mwale, Martin Limbikani, 2023. "Do agricultural subsidies matter for women’s attitude towards intimate partner violence? Evidence from Malawi," Economic Modelling, Elsevier, vol. 128(C).
    10. Skjeflo , Sofie Waage & Holden , Stein, 2014. "Economy-wide effects of input subsidies in Malawi: Market imperfections and household heterogeneity," CLTS Working Papers 7/14, Norwegian University of Life Sciences, Centre for Land Tenure Studies, revised 10 Oct 2019.
    11. Kwon, Daye & Myers, Robert J. & Mason, Nicole M., 2022. "How do input subsidy programs affect smallholder households’ dietary diversity? Evidence from Zambia," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322493, Agricultural and Applied Economics Association.
    12. Nicole M. Mason & Thomas S. Jayne & Nicolas van de Walle, 2017. "The Political Economy of Fertilizer Subsidy Programs in Africa: Evidence from Zambia," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 99(3), pages 705-731.
    13. Tebogo B. Seleka, 2022. "Old wine in a new bottle? Impact of the ISPAAD input subsidy program on the subsistence economy in Botswana," Review of Development Economics, Wiley Blackwell, vol. 26(1), pages 298-322, February.
    14. Mason, Nicole & Tembo, Solomon, 2015. "Do input Subsidies Reduce Poverty among Smallholder Farm Households? Panel Survey Evidence from Zambia," 2015 Conference, August 9-14, 2015, Milan, Italy 212233, International Association of Agricultural Economists.
    15. Jayne, T.S. & Mason, Nicole M. & Burke, William J. & Ariga, Joshua, 2016. "Agricultural Input Subsidy Programs in Africa: An Assessment of Recent Evidence," Food Security International Development Working Papers 245892, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    16. Tossou, Dagbegnon A. & Baylis, Kathy, 2018. "Does Flexibility in Agricultural Input Subsidy Programs Improve Smallholder Crop Yields and Household Food Security? Evidence from Zambia," 2018 Annual Meeting, August 5-7, Washington, D.C. 274243, Agricultural and Applied Economics Association.
    17. Jongwoo Kim & Nicole M. Mason & David Mather & Felicia Wu, 2021. "The effects of the national agricultural input voucher scheme (NAIVS) on sustainable intensification of maize production in Tanzania," Journal of Agricultural Economics, Wiley Blackwell, vol. 72(3), pages 857-877, September.
    18. Xavier Giné & Shreena Patel & Bernardo Ribeiro & Ildrim Valley, 2022. "Efficiency and equity of input subsidies: Experimental evidence from Tanzania†," American Journal of Agricultural Economics, John Wiley & Sons, vol. 104(5), pages 1625-1655, October.
    19. Mwale, Martin Limbikani & Fintel, Dieter von & Marchetta, Francesca & Smith, Anja & Kamninga, Tony Mwenda, 2021. "The Negative Impact of Farm Input Subsidies on Women's Agency in Malawi's Matrilocal Settlements," 2021 Conference, August 17-31, 2021, Virtual 315041, International Association of Agricultural Economists.
    20. Morgan, Stephen N. & Mason, Nicole M. & Levine, N. Kendra & Zulu-Mbata, Olipa, 2019. "Dis-incentivizing sustainable intensification? The case of Zambia’s maize-fertilizer subsidy program," World Development, Elsevier, vol. 122(C), pages 54-69.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:wodepe:v:22:y:2021:i:c:s2452292921000308. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/world-development-perspectives .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.