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Input Subsidies, Cash Constraints and Timing of Input Supply:-Experimental Evidence from Malawi

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  • Holden, Stein T.
  • Lunduka, Rodney

Abstract

The study investigated the demand for fertilizer among rural farm households in Malawi that have been exposed to high fertilizer subsidy levels. Subsidies and cash constraints may limit their demand but their cash constraint may be less severe at harvest time than at planting time when they normally get their inputs. Three different experiments were used to assess the demand for fertilizer at harvest time and at planting time, to elicit farm gate shadow prices for fertilizer and to assess the gap between WTA and WTP prices for a standard input package The experiments demonstrated significant effects of timing and of cash constraints.

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Bibliographic Info

Paper provided by International Association of Agricultural Economists in its series 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil with number 131460.

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Date of creation: 16 Aug 2012
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Handle: RePEc:ags:iaae12:131460

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Keywords: Malawi; input subsidies; fertilizer; cash constraints; time inconsistency; input delivery timing.; Agricultural and Food Policy; Consumer/Household Economics; Crop Production/Industries; Food Security and Poverty; Institutional and Behavioral Economics; Political Economy; Q12; Q18;

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Cited by:
  1. Holden, Stein, 2013. "High discount rates: - An artifact caused by poorly framed experiments or a result of people being poor and vulnerable?," CLTS Working Papers 8/13, Centre for Land Tenure Studies, Norwegian University of Life Sciences.

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