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Price Liberalization and Farmer Welfare Under Risk Aversion: Cotton in Benin and Ivory Coast

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  • Paul MAKDISSI

    ()
    (D´epartement d’´economique and CEREF, Universit´e de Sherbrooke, 2550 boulevard de l’Universit´e, Sherbrooke, Québec, Canada, J1K 2R1)

  • Quentin WODON

    ()
    (LCSPR, World Bank, 1818 H Street, NW, Washington, DC 20433, USA)

Abstract

Commodity producers in Africa often bene?t from guaranteed and relatively stable prices for their crops. This paper shows how to estimate the required increase in crop price necessary to o¤set the higher risk for farmers that price liberalization would entail due to large variations over time in world commodity prices.

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File URL: http://gredi.recherche.usherbrooke.ca/wpapers/04_09_pm.pdf
File Function: First version, 2004
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Bibliographic Info

Paper provided by Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke in its series Cahiers de recherche with number 04-09.

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Length: 15 pages
Date of creation: 2004
Date of revision:
Handle: RePEc:shr:wpaper:04-09

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Postal: Sherbrooke, Québec, J1K 2R1
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Keywords: Cotton; Price liberalization; Risk Aversion; Poverty; Benin; Ivory Coast.;

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References

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  1. repec:ebl:ecbull:v:9:y:2003:i:1:p:1-10 is not listed on IDEAS
  2. Akiyama, Takamasa & Baffes, John & Larson, Donald F. & Varangis, Panos, 2003. "Commodity market reform in Africa: some recent experience," Economic Systems, Elsevier, vol. 27(1), pages 83-115, March.
  3. Poulton, Colin & Gibbon, Peter & Hanyani-Mlambo, Benjamine & Kydd, Jonathan & Maro, Wilbald & Larsen, Marianne Nylandsted & Osorio, Afonso & Tschirley, David & Zulu, Ballard, 2004. "Competition and Coordination in Liberalized African Cotton Market Systems," World Development, Elsevier, vol. 32(3), pages 519-536, March.
  4. Joseph Eisenhauer & Luigi Ventura, 2003. "Survey measures of risk aversion and prudence," Applied Economics, Taylor & Francis Journals, vol. 35(13), pages 1477-1484.
  5. Louis M. Goreux & Paul R. Masson & Dhaneshwar Ghura & Ousmane Badiane, 2002. "Cotton Sector Strategies in West and Central Africa," IMF Working Papers 02/173, International Monetary Fund.
  6. Minot, Nicholas & Daniels, Lisa, 2002. "Impact of global cotton markets on rural poverty in Benin," MTID discussion papers 48, International Food Policy Research Institute (IFPRI).
  7. Paul MAKDISSI & Quentin WODON & Guillermo Cruces, 2003. "Poverty Measurement Under Risk Aversion Using Panel Data," Cahiers de recherche 03-06, Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke.
  8. Porter, Gina & Phillips-Howard[malt], Kevin, 1997. "Comparing contracts: An evaluation of contract farming schemes in Africa," World Development, Elsevier, vol. 25(2), pages 227-238, February.
  9. Paul Makdissi & Quentin Wodon, 2003. "Risk-adjusted measures of wage inequality and safety nets," Economics Bulletin, AccessEcon, vol. 9(1), pages 1-10.
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Citations

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Cited by:
  1. Antoine Leblois & Philippe Quirion & Benjamin Sultan, 2014. "Price vs. weather shock hedging for cash crops: ex ante evaluation for cotton producers in Cameroon," Post-Print halshs-00967313, HAL.
  2. Delpeuch, Claire & Vandeplas, Anneleen, 2011. "Revisiting the "Cotton Problem" - A Comparative Analysis of Cotton Reforms in Sub-Saharan Africa," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114446, European Association of Agricultural Economists.
  3. repec:hal:wpaper:hal-00796528 is not listed on IDEAS

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