IDEAS home Printed from https://ideas.repec.org/a/plo/pone00/0308651.html

Willingness to pay for sheep traits and their heterogeneous effects on prices: Evidence from primary livestock markets in Ethiopia

Author

Listed:
  • Asresu Yitayew
  • Girma T Kassie
  • Awudu Abduali
  • Zerihun Nigussie

Abstract

We test the hypothesis whether levels of key traits of sheep heterogeneously affect market prices of sheep in a rural setting. Feasible generalized least squares and (un)conditional quantile regression estimations were made on a dataset of 1153 sheep transactions in two primary small ruminant markets in the Amhara region of Ethiopia. The empirical results show that animal traits affect the observed prices of sheep differently, but only partly explain the sheep price differences. Our results also reveal that in addition to animal traits, the type of buyers and seasonality of sheep marketing cause heterogeneity in the observed prices. These findings imply that targeting the animal traits demanded by the market and access to price information that enables farmers to respond to the seasonal changes in livestock markets are essential to increase the income of sheep keepers.

Suggested Citation

  • Asresu Yitayew & Girma T Kassie & Awudu Abduali & Zerihun Nigussie, 2024. "Willingness to pay for sheep traits and their heterogeneous effects on prices: Evidence from primary livestock markets in Ethiopia," PLOS ONE, Public Library of Science, vol. 19(9), pages 1-16, September.
    • Handle: RePEc:plo:pone00:0308651
    DOI: 10.1371/journal.pone.0308651
    as

    Download full text from publisher

    File URL: https://journals.plos.org/plosone/article?id=10.1371/journal.pone.0308651
    Download Restriction: no
    File URL: https://journals.plos.org/plosone/article/file?id=10.1371/journal.pone.0308651&type=printable
    Download Restriction: no
    File URL: https://libkey.io/10.1371/journal.pone.0308651?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Dagim G. Belay & Hailemariam Ayalew, 2020. "Nudging farmers in crop choice using price information: Evidence from Ethiopian Commodity Exchange," Agricultural Economics, International Association of Agricultural Economists, vol. 51(5), pages 793-808, September.
    2. Luc Dossa & Barbara Rischkowsky & Regina Birner & Clemens Wollny, 2008. "Socio-economic determinants of keeping goats and sheep by rural people in southern Benin," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 25(4), pages 581-592, December.
    3. Bijan J. Borah & Anirban Basu, 2013. "Highlighting Differences Between Conditional And Unconditional Quantile Regression Approaches Through An Application To Assess Medication Adherence," Health Economics, John Wiley & Sons, Ltd., vol. 22(9), pages 1052-1070, September.
    4. Nicolai T. Borgen, 2016. "Fixed effects in unconditional quantile regression," Stata Journal, StataCorp LLC, vol. 16(2), pages 403-415, June.
    5. Brown, Jeff E. & Ethridge, Don E., 1995. "Functional Form Model Specification: An Application To Hedonic Pricing," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 24(2), pages 1-8, October.
    6. Sergio Firpo & Nicole M. Fortin & Thomas Lemieux, 2009. "Unconditional Quantile Regressions," Econometrica, Econometric Society, vol. 77(3), pages 953-973, May.
    7. Tadesse, Getaw & Shively, Gerald, . "AJAE appendix for Food aid, food prices and producer disincentives in Ethiopia," American Journal of Agricultural Economics APPENDICES, Agricultural and Applied Economics Association, vol. 91(4), pages 1-47.
    8. A. Colin Cameron & Pravin K. Trivedi, 2010. "Microeconometrics Using Stata, Revised Edition," Stata Press books, StataCorp LLC, number musr, March.
    9. Amartya K. Sen, 1971. "Choice Functions and Revealed Preference," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 38(3), pages 307-317.
    10. Asresu Yitayew & Yigezu A. Yigezu & Girma T. Kassie & Tilaye T. Deneke & Aynalem Haile & Halima Hassen & Barbara Rischkowsky, 2019. "Identification of strategies to improve goat marketing in the lowlands of Ethiopia: a hedonic price analysis," Applied Economics, Taylor & Francis Journals, vol. 51(1), pages 61-75, January.
    11. Getaw Tadesse & Gerald Shively, 2009. "Food Aid, Food Prices, and Producer Disincentives in Ethiopia," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(4), pages 942-955.
    12. Koenker, Roger W & Bassett, Gilbert, Jr, 1978. "Regression Quantiles," Econometrica, Econometric Society, vol. 46(1), pages 33-50, January.
    13. Girma Kassie & Awudu Abdulai & Clemens Wollny, 2011. "Heteroscedastic hedonic price model for cattle in the rural markets of central Ethiopia," Applied Economics, Taylor & Francis Journals, vol. 43(24), pages 3459-3464.
    14. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74(2), pages 132-132.
    15. Yami, Alemu & Gelaw, Fekadu & Hinner, Koster & Siraw, Bewket, 2018. "Reorienting livestock production to respond to the meat quality requirements of high-end domestic and export markets," MPRA Paper 114984, University Library of Munich, Germany.
    16. Wang, Wen & Lien, Donald, 2018. "Union membership, union coverage and wage dispersion of rural migrants: Evidence from Suzhou industrial sector," China Economic Review, Elsevier, vol. 49(C), pages 96-113.
    17. Brown, Jeff E. & Ethridge, Don E., 1995. "Functional Form Model Specification: An Application to Hedonic Pricing," Agricultural and Resource Economics Review, Cambridge University Press, vol. 24(2), pages 166-173, October.
    18. Fantu Bachewe & Derek Headey & Bart Minten, 2023. "Price predictors in an extended hedonic regression framework: An application to wholesale cattle markets in Ethiopia," Agricultural Economics, International Association of Agricultural Economists, vol. 54(2), pages 289-306, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Apergis, Nicholas & Chasiotis, Ioannis & Georgantopoulos, Andreas G. & Konstantios, Dimitrios, 2021. "The integration of share repurchases into investment decision-making: Evidence from Japan," International Review of Financial Analysis, Elsevier, vol. 78(C).
    2. Ioannis Chasiotis & Andreas G. Georgantopoulos, 2021. "The flexibility of corporate payouts vis-à-vis capital investment: some UK evidence," International Journal of Managerial Finance, Emerald Group Publishing Limited, vol. 18(1), pages 181-201, February.
    3. Francesco Longo & Luigi Siciliani & Giuseppe Moscelli & Hugh Gravelle, 2019. "Does hospital competition improve efficiency? The effect of the patient choice reform in England," Health Economics, John Wiley & Sons, Ltd., vol. 28(5), pages 618-640, May.
    4. Simona Comi & Mara Grasseni & Laura Resmini, 2024. "Global shocks and the dynamics of EU countries' specialisation," The World Economy, Wiley Blackwell, vol. 47(8), pages 3394-3420, August.
    5. Freire, Tiago & Rudkin, Simon, 2019. "Healthy food diversity and supermarket interventions: Evidence from the Seacroft Intervention Study," Food Policy, Elsevier, vol. 83(C), pages 125-138.
    6. Chen, Yang & He, Ming & Rudkin, Simon, 2017. "Manufacturing productivity in China: Deconstructing the role of Agglomeration," RIEI Working Papers 2017-04, Xi'an Jiaotong-Liverpool University, Research Institute for Economic Integration.
    7. Huong Thu Le & Ha Trong Nguyen, 2018. "The evolution of the gender test score gap through seventh grade: new insights from Australia using unconditional quantile regression and decomposition," IZA Journal of Labor Economics, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 7(1), pages 1-42, December.
    8. Wang, Wen & Lien, Donald, 2018. "Union membership, union coverage and wage dispersion of rural migrants: Evidence from Suzhou industrial sector," China Economic Review, Elsevier, vol. 49(C), pages 96-113.
    9. Markowitz, Sara & Adams, E. Kathleen & Lewitt, Mary Jane & Dunlop, Anne L., 2017. "Competitive effects of scope of practice restrictions: Public health or public harm?," Journal of Health Economics, Elsevier, vol. 55(C), pages 201-218.
    10. Evangelista, Rui & Silva, João Andrade e & Ramalho, Esmeralda A., 2022. "How heterogeneous is the impact of energy efficiency on dwelling prices? Evidence from the application of the unconditional quantile hedonic model to the Portuguese residential market," Energy Economics, Elsevier, vol. 109(C).
    11. Cobb-Clark, Deborah A. & Kassenboehmer, Sonja C. & Sinning, Mathias G., 2016. "Locus of control and savings," Journal of Banking & Finance, Elsevier, vol. 73(C), pages 113-130.
    12. Gebreegziabher, Z. & Mekonnen, A. & Beyene, A.D. & Hagos, F., 2018. "Valuation of access to irrigation water in rural Ethiopia: application of choice experiment and contingent valuation methods," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277168, International Association of Agricultural Economists.
    13. Bernal, Gloria L. & Penney, Jeffrey, 2019. "Scholarships and student effort: Evidence from Colombia’s Ser Pilo Paga program," Economics of Education Review, Elsevier, vol. 72(C), pages 121-130.
    14. Dong, Xiyong & Li, Changhong & Yoon, Seong-Min, 2021. "How can investors build a better portfolio in small open economies? Evidence from Asia’s Four Little Dragons," The North American Journal of Economics and Finance, Elsevier, vol. 58(C).
    15. Damette, Olivier & Kouki, Imen, 2022. "Political influence and banking performance: Evidence from the African countries," The Quarterly Review of Economics and Finance, Elsevier, vol. 84(C), pages 200-207.
    16. Cepoi, Cosmin-Octavian & Anghel, Dan-Gabriel & Pop, Ionuţ Daniel, 2021. "Asymmetries and flight-to-safety effects in the price discovery process of cross-listed stocks," Economic Modelling, Elsevier, vol. 98(C), pages 302-318.
    17. Qin, Yu & Zhu, Hongjia & Zhu, Rong, 2016. "Changes in the distribution of land prices in urban China during 2007–2012," Regional Science and Urban Economics, Elsevier, vol. 57(C), pages 77-90.
    18. Segundo Camino-Mogro & Mary Armijos & Paul Vera-Gilces, 2022. "High-growth firms and international trade: evidence from Ecuador," Journal of Evolutionary Economics, Springer, vol. 32(1), pages 299-332, January.
    19. Nicodemo, Catia & Raya, Josep Maria, 2012. "Change in the distribution of house prices across Spanish cities," Regional Science and Urban Economics, Elsevier, vol. 42(4), pages 739-748.
    20. Sharma, Abhijit & Sousa, Cristina & Woodward, Richard, 2022. "Determinants of innovation outcomes: The role of institutional quality," Technovation, Elsevier, vol. 118(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:plo:pone00:0308651. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: plosone (email available below). General contact details of provider: https://journals.plos.org/plosone/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.