Rural Infrastructure, Transactions Costs, And Marketed Surplus In Kenya
We develop a conceptual framework for quantifying fixed transactions costs facing semisubsistence households. Using household survey data from a sample of 324 Kenyan maize farmers, we generate estimates of household supply and demand schedules, as well as the price bands that they face. Our econometric results indicate that on average the ad valorem tax equivalent of the fixed transactions costs facing the households in our sample is 28%. Additional analysis indicates that both remoteness and infrastructure quality have significant impacts on the size of the transactions costs facing farm households. To the best of our knowledge, ours are the first empirical estimates of the magnitude of transactions costs.
|Date of creation:||2001|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: (414) 918-3190
Fax: (414) 276-3349
Web page: http://www.aaea.orgEmail:
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Townsend, R.M., 1991.
"Risk and Insurance in Village India,"
University of Chicago - Economics Research Center
91-3, Chicago - Economics Research Center.
- Robert M. Townsend, . "Risk and Insurance in Village India," University of Chicago - Population Research Center 91-3a, Chicago - Population Research Center.
- Benjamin, Dwayne, 1992. "Household Composition, Labor Markets, and Labor Demand: Testing for Separation in Agricultural Household Models," Econometrica, Econometric Society, vol. 60(2), pages 287-322, March.
- Nigel Key & Elisabeth Sadoulet & Alain De Janvry, 2000. "Transactions Costs and Agricultural Household Supply Response," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(2), pages 245-259.
- Haggblade, Steven & Hazell, Peter & Brown, James, 1989.
"Farm-nonfarm linkages in rural sub-Saharan Africa,"
Elsevier, vol. 17(8), pages 1173-1201, August.
- Pinstrup-Andersen, Per & Pandya-Lorch, Rajul, 1994. "Alleviating poverty, intensifying agriculture, and effectively managing natural resources.:," 2020 vision discussion papers 1, International Food Policy Research Institute (IFPRI).
- Udry, Christopher, 1994. "Risk and Insurance in a Rural Credit Market: An Empirical Investigation in Northern Nigeria," Review of Economic Studies, Wiley Blackwell, vol. 61(3), pages 495-526, July.
- de Janvry, Alain & Fafchamps, Marcel & Sadoulet, Elisabeth, 1991. "Peasant Household Behaviour with Missing Markets: Some Paradoxes Explained," Economic Journal, Royal Economic Society, vol. 101(409), pages 1400-417, November.
- Fan, Shenggen & Hazell, P. B. R., 1999. "Are returns to public investment lower in less-favored rural areas?: an empirical analysis of India," EPTD discussion papers 43, International Food Policy Research Institute (IFPRI).
- Shaban, Radwan Ali, 1987. "Testing between Competing Models of Sharecropping," Journal of Political Economy, University of Chicago Press, vol. 95(5), pages 893-920, October.
- Naylor, Rosamond L. & Falcon, Walter P., 1995. "Is the locus of poverty changing?," Food Policy, Elsevier, vol. 20(6), pages 501-518, December.
When requesting a correction, please mention this item's handle: RePEc:ags:aaea01:20668. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)
If references are entirely missing, you can add them using this form.