Government policy and dynamic supply response: a study of the compulsory grain delivery system
AbstractThe impact of government policy on the dynamics of agricultural supply in Ethiopia during the 1980s is explored. Specifically, an intertemporal acreage allocation model that allows for the impact of compulsory grain delivery is developed. Subsequently, an estimable dynamic acreage demand equation is derived, and estimated for a crop using region-level data. Generalized Method of Moments (GMM) estimators for dynamic panel data models are used. The elasticity estimates thus obtained suggest that the demand for crop acreage (and hence the supply of crop output) responded negatively to the level of forced grain procurement, and positively to output price.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 18674.
Date of creation: Jun 1997
Date of revision:
Publication status: Published in Ethiopian Journal of Economics 2.9(2005): pp. 1-42
compulsory grain deliver system; agricultural supply response; dynamic panel date models;
Find related papers by JEL classification:
- D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
- O13 - Economic Development, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
- D45 - Microeconomics - - Market Structure and Pricing - - - Rationing; Licensing
- O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
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