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Can Risk Averse Competitive Input Providers Serve Farmers Efficiently in Developing Countries

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Author Info
Paul Makdissi () (Department of Economics, University of Ottawa)
Quentin Wodon () (AFTPM, The World Bank)

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Abstract

Under price ceilings and quality floors for agricultural inputs in cash crop sectors in developing countries where credit markets are weak, imperfect information on the ability of farmers to pay for their inputs at the end of the cropping season may lead the decentralized production of those inputs by risk averse private input providers to be inefficient. A coordinating agency and/or subsidies for new farmers could help to produce and distribute more agricultural inputs, thereby increasing the profits for input providers while also enabling more farmers to produce the crops that are key to their livelihood.

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File URL: http://www.socialsciences.uottawa.ca/eco/eng/documents/0808E.pdf
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Publisher Info
Paper provided by University of Ottawa, Department of Economics in its series Working Papers with number 0808E.

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Length: 12 pages
Date of creation: 2008
Date of revision:
Handle: RePEc:ott:wpaper:0808e

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Related research
Keywords: Farm inputs; Risk Aversion; Price Control; Public Good;

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Find related papers by JEL classification:
H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

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  1. Paul Makdissi & Quentin Wodon, 2005. "The Impact on Farmers of Privatizing Parastatal Agricultural Monopsonies," Journal of Agricultural & Food Industrial Organization, Berkeley Electronic Press, vol. 3(2). [Downloadable!]
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This page was last updated on 2009-11-25.

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