Advanced Search
MyIDEAS: Login

Subsidies and Crowding Out: A Double-Hurdle Model of Fertilizer Demand in Malawi

Contents:

Author Info

  • Jacob Ricker-Gilbert
  • Thomas S. Jayne
  • Ephraim Chirwa

Abstract

This article uses a double-hurdle model with panel data from Malawi to investigate how fertilizer subsidies affect farmer demand for commercial fertilizer. The article controls for potential endogeneity caused by the nonrandom targeting of fertilizer subsidy recipients. Results show that on average 1 additional kilogram of subsidized fertilizer crowds out 0.22 kg of commercial fertilizer, but crowding out ranges from 0.18 among the poorest farmers to 0.30 among relatively nonpoor farmers. This indicates that targeting fertilizer subsidies to the rural poor is likely to maximize the contribution of the subsidy program to total fertilizer use. Copyright 2010, Oxford University Press.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://hdl.handle.net/10.1093/ajae/aaq122
Download Restriction: Access to full text is restricted to subscribers.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Bibliographic Info

Article provided by Agricultural and Applied Economics Association in its journal American Journal of Agricultural Economics.

Volume (Year): 93 (2010)
Issue (Month): 1 ()
Pages: 26-42

as in new window
Handle: RePEc:oup:ajagec:v:93:y:2010:i:1:p:26-42

Contact details of provider:
Postal: 555 East Wells Street, Suite 1100, Milwaukee, Wisconsin 53202
Phone: (414) 918-3190
Fax: (414) 276-3349
Email:
Web page: http://www.aaea.org/
More information through EDIRC

Related research

Keywords:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

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

Cited by:
  1. Smale, Melinda & Mathenge, Mary K. & Jayne, Thomas S. & Magalhaes, Eduardo Castelo & Olwande, John & Kirimi, Lilian & Kamau, Mercy W. & Githuku, James, 2012. "Income and Poverty Impacts of USAID-Funded Programs to Promote Maize, Horticulture, and Dairy Enterprises in Kenya, 2004-2010," Food Security International Development Working Papers 121864, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  2. Mather, David & Jayne, Thomas S., 2012. "The Impact of State Marketing Board Operations on Smallholder Behavior and Incomes: The Case of Kenya," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 131056, International Association of Agricultural Economists.
  3. Ricker-Gilbert, Jacob & Jayne, Thomas S., 2011. "What are the Enduring Effects of Fertilizer Subsidy Programs on Recipient Farm Households? Evidence from Malawi," Staff Papers 109593, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  4. Mather, David & Boughton, Duncan & Jayne, Thomas S., 2011. "Smallholder Heterogeneity and Maize Market Participation in Southern and Eastern Africa: Implications for Investment Strategies to Increase Marketed Food Staple Supply," Food Security International Development Working Papers 118473, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  5. Bentry Mkwara & Dan Marsh, 2011. "Effects of Maize Fertilizer Subsidies on Food Security in Malawi," Working Papers in Economics 11/14, University of Waikato, Department of Economics.
  6. Pan, Lei & Christiaensen, Luc, 2012. "Who is Vouching for the Input Voucher? Decentralized Targeting and Elite Capture in Tanzania," World Development, Elsevier, vol. 40(8), pages 1619-1633.
  7. Mason, Nicole M. & Ricker-Gilbert, Jacob, 2012. "Disrupting Demand for Commercial Seed: Input Subsidies in Malawi and Zambia," Food Security Collaborative Working Papers 123554, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  8. Ricker-Gilbert, Jacob & Jayne, Thomas S., 2012. "Do Fertilizer Subsidies Boost Staple Crop Production and Reduce Poverty Across the Distribution of Smallholders in Africa? Quantile Regression Results from Malawi," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126742, International Association of Agricultural Economists.
  9. Smale, Melinda, 2011. "Does Household Headship Affect Demand for Hybrid Maize Seed in Kenya? An Exploratory Analysis Based on 2010 Survey Data," Food Security International Development Working Papers 118475, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  10. Reyes, Byron & Donovan, Cynthia & Bernsten, Richard H. & Maredia, Mywish K., 2012. "Market participation and sale of potatoes by smallholder farmers in the central highlands of Angola: A Double Hurdle approach," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126655, International Association of Agricultural Economists.
  11. Mason, Nicole M. & Jayne, Thomas S. & Myers, Robert J., 2012. "Smallholder Behavioral Responses to Marketing Board Activities in a Dual Channel Marketing System: The Case of Maize in Zambia," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126927, International Association of Agricultural Economists.
  12. Deininger, Klaus & Jin, Songqing & Xia, Fang, 2012. "Moving off the farm: Land institutions to facilitate structural transformation and agricultural productivity growth in China," Policy Research Working Paper Series 5949, The World Bank.
  13. Smale, Melinda & Mason, Nicole, 2012. "Demand for maize hybrids, seed subsidies, and seed decisionmakers in Zambia," HarvestPlus Working Papers 8, International Food Policy Research Institute (IFPRI).
  14. Kelly, Valerie A. & Crawford, Eric W. & Ricker-Gilbert, Jacob, 2011. "The New Generation of African Fertilizer Subsidies: Panacea or Pandora’s Box?," Food Security International Development Policy Syntheses 107460, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  15. Olwande, John & Smale, Melinda, 2012. "Is Older Better? Maize Hybrid Change on Household Farms in Kenya," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126669, International Association of Agricultural Economists.
  16. Smale, Melinda & Byerlee, Derek & Jayne, Thom, 2011. "Maize revolutions in Sub-Saharan Africa," Policy Research Working Paper Series 5659, The World Bank.
  17. Mason, Nicole M. & Jayne, Thomas S. & Myers, Robert J., 2011. "Zambian Smallholder Behavioral Responses To Food Reserve Agency Activities," Food Security Collaborative Working Papers 120768, Michigan State University, Department of Agricultural, Food, and Resource Economics.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:oup:ajagec:v:93:y:2010:i:1:p:26-42

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Oxford University Press) or (Christopher F. Baum).

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 references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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