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Farmers’ Subjective Valuation of Subsistence Crops: The Case of Traditional Maize in Mexico

Author

Listed:
  • Aslihan Arslan
  • J. Edward Taylor

Abstract

Shadow prices guide farmers’ resource allocations, but for subsistence farmers who grow traditional crops they may bear little relationship with market prices. We theoretically derive shadow prices for a subsistence crop with nonmarket value, then estimate shadow prices of maize using data from a nationally representative survey of rural households in Mexico. Shadow prices are significantly higher than market prices for traditional but not improved maize varieties. They are particularly high in the indigenous areas of southern and southeastern Mexico, indicating large de facto incentives to maintain traditional varieties there. Copyright 2009, Oxford University Press.

Suggested Citation

  • Aslihan Arslan & J. Edward Taylor, 2009. "Farmers’ Subjective Valuation of Subsistence Crops: The Case of Traditional Maize in Mexico," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(4), pages 956-972.
    • Handle: RePEc:oup:ajagec:v:91:y:2009:i:4:p:956-972
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    File URL: http://hdl.handle.net/10.1111/j.1467-8276.2009.01323.x
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    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q39 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Other

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