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An Ordered Tobit Model of Market Participation: Evidence from Kenya and Ethiopia Author info | Abstract | Publisher info | Download info | Related research | Statistics Bellemare, Marc F.
Barrett, Christopher B.
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Do rural households in developing countries make market participation and volume decisions simultaneously or sequentially? This article develops a two-stage econometric model that allows testing between these two competing hypotheses regarding household-level market behavior. The first stage models the household's choice of whether to be a net buyer, autarkic, or a net seller in the market. The second stage models the quantity bought (sold) for net buyers (sellers) based on observable household characteristics. Using household data from Kenya and Ethiopia on livestock markets, we find evidence in favor of sequential decision-making, the welfare implications of which we discuss.
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Paper provided by Cornell University, Department of Applied Economics and Management in its series Working Papers with number
14748.
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Date of creation: 2005Date of revision:
Handle: RePEc:ags:cudawp:14748Contact details of provider: Postal: Warren Hall, Ithaca NY 14853 Fax: 607-255-9984 Web page: http://aem.cornell.edu/ More information through EDIRC
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Keywords: Industrial Organization ; Other versions of this item:
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.: Travis J. Lybbert & Christopher B. Barrett & Solomon Desta & D. Layne Coppock, 2004.
"Stochastic wealth dynamics and risk management among a poor population ,"
Economic Journal ,
Royal Economic Society, vol. 114(498), pages 750-777, October.
[Downloadable!] (restricted)
Other versions: Barrett, Christopher B. & Luseno, Winnie K., 2004.
"Decomposing producer price risk: a policy analysis tool with an application to northern Kenyan livestock markets ,"
Food Policy ,
Elsevier, vol. 29(4), pages 393-405, August.
[Downloadable!] (restricted)
Other versions: Puhani, Patrick A, 2000.
" The Heckman Correction for Sample Selection and Its Critique ,"
Journal of Economic Surveys ,
Blackwell Publishing, vol. 14(1), pages 53-68, February.
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