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The Benefits Of A Rules-Based Maize Marketing Policy: Results Of An Experimental Study Of Zambia

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Author Info
Klaus Abbink (CREED, University of Amsterdam,)
T.S. Jayne (Department of Agricultural Economics, Michigan State University)
Lars C. Moller (the World Bank)

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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.

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Publisher Info
Paper provided by Department of Agricultural Economics, Michigan State University in its series International Development Collaborative Policy Briefs with number ZM-FSRP-PB-29.

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Date of creation: 2007
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Handle: RePEc:msu:icpbrf:zm-fsrp-pb-029

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Related research
Keywords: food security; food policy; Zambia; maize; marketing;

Find related papers by JEL classification:
Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General

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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.:
  1. David Tschirley & Jan J. Nijhoff & Pedro Arlindo & Billy Mwinga & Michael T. Weber & T.S. Jayne, 2006. "Anticipating and Responding to Drought Emergencies in Southern Africa: Lessons from the 2002-2003 Experience," International Development Working Papers 89, Department of Agricultural Economics, Michigan State University. [Downloadable!]
  2. Anthony Mwanaumo & T.S. Jayne & Ballard Zulu & Julius Shawa & Green Mbozi & Steven Haggblade & Misheck Nyembe, 2005. "Zambia's 2005 Maize Import and Marketing Experiences: By Lessons and Implications," International Development Collaborative Policy Briefs ZM-FSRP-PB-11, Department of Agricultural Economics, Michigan State University. [Downloadable!]
  3. Abbink, Klaus & Jayne, Thomas S. & Moller, Lars C., 2008. "The relevance of a rules-based maize marketing policy : an experimental case study of Zambia," Policy Research Working Paper Series 4727, The World Bank. [Downloadable!]
  4. 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. [Downloadable!] (restricted)
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  1. Steven Haggblade & T.S. Jayne & David L. Tschirley & Steven Longabaugh, 2008. "Potential for Intra-Regional Maize Trade in Southern Africa: an Analysis for Zambia at the Sub-National Level," International Development Collaborative Working Papers ZM-FSRP-WP-35, Department of Agricultural Economics, Michigan State University. [Downloadable!]
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