Price and tax policy for semi-subsistence agriculture in Ethiopia
AbstractIn the case of semi-subsistence agriculture where wage employment is not available, the role played by prices and taxes in determining production and consumption decisions is not clearly established by economic theories of household choice. This study demonstrates that where choices in production, consumption, and leisure can be made independently, farmers will decide what to grow on the basis of their preferences for marketed goods. The paper also points out that the choice will be affected by the level and type of taxation imposed. The paper shows the impact of four taxes -- agricultural revenue, land, production and marketed goods consumption -- on crop production and tax revenues. This paper also reports on a model of production in Ethiopia. The results of this study give strong evidence of the role of producer and consumer prices in semi-subsistence agriculture. In addition, the results show the importance of production capacity, household and climatic factors in agricultural development.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by The World Bank in its series Policy Research Working Paper Series with number 67.
Date of creation: 31 Aug 1988
Date of revision:
Environmental Economics&Policies; Economic Theory&Research; Crops&Crop Management Systems; Agricultural Knowledge&Information Systems; Consumption;
You can help add them by filling out this form.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Roula I. Yazigi).
If references are entirely missing, you can add them using this form.