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The Benefits of a Rules-Based Maize Marketing Policy: Results of an Experimental Study of Zambia

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  • Abbink, Klaus
  • Jayne, Thomas S.
  • Moller, Lars C.

Abstract

• Strategic interaction between market players affects the performance of grain markets and the risk of food crises. Strategic dilemmas can arise if traders don’t trust government announcements on future maize purchases or if the government does not trust stock estimates provided by the private sector. • Government “pre-commitment” (announcing in advance how and when it will operate in the market and then behaving in a consistent manner) is found to produce superior welfare outcomes to “discretionary intervention” whereby the government operates in an unpredictable and ad hoc manner in markets. Situations of food shortage and over-supply were much more frequent under a discretionary policy environment because of the risk of poor coordination between the government and the private sector. • Exploring mechanisms that can support more predictable and rules-based policy responses may therefore be beneficial to the Government of Zambia and the country as a whole.

Suggested Citation

  • Abbink, Klaus & Jayne, Thomas S. & Moller, Lars C., 2007. "The Benefits of a Rules-Based Maize Marketing Policy: Results of an Experimental Study of Zambia," Food Security Collaborative Policy Briefs 54636, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    • Handle: RePEc:ags:midcpb:54636
    DOI: 10.22004/ag.econ.54636
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    References listed on IDEAS

    as
    1. Jayne, T.S. & Zulu, Ballard & Nijhoff, J.J., 2006. "Stabilizing food markets in eastern and southern Africa," Food Policy, Elsevier, vol. 31(4), pages 328-341, August.
    2. Mwanaumo, Anthony & Jayne, Thomas S. & Zulu, Ballard & Shawa, Julius J. & Mbozi, Green & Haggblade, Steven & Nyembe, Misheck, 2005. "Zambia's 2005 Maize Import and Marketing Experiences: Lessons and Implications," Food Security Collaborative Policy Briefs 54615, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    3. Klaus Abbink & Thomas Jayne & Lars Moller, 2011. "The Relevance of a Rules-based Maize Marketing Policy: An Experimental Case Study of Zambia," Journal of Development Studies, Taylor & Francis Journals, vol. 47(2), pages 207-230.
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    Cited by:

    1. Haggblade, Steven & Jayne, Thomas S. & Tschirley, David L. & Longabaugh, Steven, 2008. "Potential for Intra-Regional Maize Trade in Southern Africa: an Analysis for Zambia at the Sub-National Level," Food Security Collaborative Working Papers 54494, Michigan State University, Department of Agricultural, Food, and Resource Economics.

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