Sensitivity of welfare effects estimated by equilibrium displacement model: a biological productivity growth for semi-subsistence crop in Sub-Sahara African market with high transactions costs
AbstractThis paper discusses the application of the equilibrium displacement model (EDM) to estimate ex-ante the welfare effects of biological productivity growth for semi-subsistence crop and its impact on poverty reduction. The conventionally used EDM is compared with an alternative model (alternative EDM) that reflects arguably more realistic assumptions for African semi-subsistence crops, such as the shape and shift of supply curve, significant margins due to high transportation costs between farmgate and consumption market, as well as between different consumption markets, and the degree of precisions of estimated structural parameters. The application to the dataset for Benin cassava farmers provides an example that the conventional EDM may significantly overestimate the total welfare gains, and may also lead to very different interpretation of how pro-poor the technology is.
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Bibliographic InfoPaper provided by Agricultural and Applied Economics Association in its series 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin with number 49287.
Date of creation: 2009
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equilibrium displacement model; pivotal shift; cassava; semi-subsistence; market margins; double buffering; Agricultural and Food Policy; Consumer/Household Economics; Food Security and Poverty; International Development; Productivity Analysis; Research Methods/ Statistical Methods; C65; D13; D31; D60; Q11; Q12;
Find related papers by JEL classification:
- C65 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Miscellaneous Mathematical Tools
- D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
- D60 - Microeconomics - - Welfare Economics - - - General
- Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices
- Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
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