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The adding up problem: a targeting approach

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  • Kala Krishna

Abstract

This paper looks at the problem of making multiple lending decisions which affect the supply of the product when the consequences of these lending decisions are interrelated via the effect on the world price of the product. This is termed the 'adding up problem'. It is argued that thinking of this problem from the point of view of the targeting literature helps to clarify the nature of optimal polices.

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File URL: http://www.tandfonline.com/doi/abs/10.1080/09638199800000009
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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal The Journal of International Trade & Economic Development.

Volume (Year): 7 (1998)
Issue (Month): 2 ()
Pages: 151-173

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Handle: RePEc:taf:jitecd:v:7:y:1998:i:2:p:151-173

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Related research

Keywords: Adding up; targeting; optimal policies; export tax; investment;

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References

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  1. Besley, Timothy, 1997. "Monopsony and Time-Consistency: Sustainable Pricing Policies for Perennial Crops," Review of Development Economics, Wiley Blackwell, vol. 1(1), pages 57-70, February.
  2. Akiyama, Takamasa & Larson, Donald F. & DEC, 1994. "The adding-up problem : strategies for primary commodity exports in sub-Saharan Africa," Policy Research Working Paper Series 1245, The World Bank.
  3. Kala Krishna & Marie Thursby, 1988. "Optimal Policies with Strategic Distortions," NBER Working Papers 2527, National Bureau of Economic Research, Inc.
  4. Will Martin, 1993. "The Fallacy of Composition and Developing Country Exports of Manufactures," The World Economy, Wiley Blackwell, vol. 16(2), pages 159-172, 03.
  5. Krishna, Kala & Thursby, Marie, 1992. "Optimal policies and marketing board objectives," Journal of Development Economics, Elsevier, vol. 38(1), pages 1-15, January.
  6. Takamasa Akiyama, 1992. "Is there a case for an optimal export tax on perennial crops?," Policy Research Working Paper Series 854, The World Bank.
  7. Tower, Edward, 1977. "Ranking the optimum tariff and the maximum revenue tariff," Journal of International Economics, Elsevier, vol. 7(1), pages 73-79, February.
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Cited by:
  1. Christopher L. Gilbert & Panos Varangis, 2003. "Globalization and International Commodity Trade with Specific Reference to the West African Cocoa Producers," NBER Working Papers 9668, National Bureau of Economic Research, Inc.
  2. Christopher Gilbert & Panos Varangis, 2004. "Globalization and International Commodity Trade with Specific Reference to the West African Cocoa Producers," NBER Chapters, in: Challenges to Globalization: Analyzing the Economics, pages 131-166 National Bureau of Economic Research, Inc.

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