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Farmers' Subjective Valuation of Subsistence Crops: The Case of Traditional Maize in Mexico

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Author Info
Aslihan Arslan
J. Edward Taylor
Abstract

Shadow prices guide farmers' resource allocations, but for subsistence farmers growing traditional crops, shadow prices may bear little relationship with market prices. We econometrically estimate shadow prices of maize using data from a nationally representative survey of rural households in Mexico. Shadow prices are significantly higher than the market price for traditional but not improved maize varieties. They are particularly high in the indigenous areas of southern and southeastern Mexico, indicating large de facto incentives to maintain traditional maize there

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Paper provided by Kiel Institute for the World Economy in its series Kiel Working Papers with number 1457.

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Length: 44 pages
Date of creation: Oct 2008
Date of revision:
Handle: RePEc:kie:kieliw:1457

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Related research
Keywords: Shadow prices; non-market values; supply response; traditional crops; onfarm; conservation; Mexico;

Find related papers by JEL classification:
O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
O13 - Economic Development, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
Q39 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Other

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  5. Joshua D. Angrist, 2000. "Estimation of Limited-Dependent Variable Models with Dummy Endogenous Regressors: Simple Strategies for Empirical Practice," NBER Technical Working Papers 0248, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  6. Finan, Frederico & Sadoulet, Elisabeth & de Janvry, Alain, 2005. "Measuring the poverty reduction potential of land in rural Mexico," Journal of Development Economics, Elsevier, vol. 77(1), pages 27-51, June. [Downloadable!] (restricted)
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  13. Bellon, Mauricio R & Taylor, J Edward, 1993. ""Folk" Soil Taxonomy and the Partial Adoption of New Seed Varieties," Economic Development and Cultural Change, University of Chicago Press, vol. 41(4), pages 763-86, July.
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  15. van Dusen, M. Eric, 2000. "In Situ Conservation Of Crop Genetic Resources In The Mexican Milpa System," Dissertations 11941, University of California, Davis, Department of Agricultural and Resource Economics. [Downloadable!]
  16. Smale, Melinda & Bellon, Mauricio R & Aguirre Gomez, Jose Alfonso, 2001. "Maize Diversity, Variety Attributes, and Farmers' Choices in Southeastern Guanajuato, Mexico," Economic Development and Cultural Change, University of Chicago Press, vol. 50(1), pages 201-25, October.
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