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Rice Price Stabilization in Madagascar: Price and Welfare Implications of Variable Tariffs

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  • Dorosh, Paul A.
  • Minten, Bart

Abstract

Given the large share of major staples in the budgets of the poor, governments in many developing countries intervene in food markets to limit variation in the prices of staple foods. This paper examines the recent experience of Madagascar in stabilizing prices through international trade and the implications of adjustments in tariff rates. Using a partial equilibrium model, we quantify the overall costs and benefits of a change in import duties for various household groups, and compare this intervention to a policy of targeted food transfers or security stocks.

Suggested Citation

  • Dorosh, Paul A. & Minten, Bart, 2006. "Rice Price Stabilization in Madagascar: Price and Welfare Implications of Variable Tariffs," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25478, International Association of Agricultural Economists.
  • Handle: RePEc:ags:iaae06:25478
    DOI: 10.22004/ag.econ.25478
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    References listed on IDEAS

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    1. Dorosh, Paul A., 2001. "Trade Liberalization and National Food Security: Rice Trade between Bangladesh and India," World Development, Elsevier, vol. 29(4), pages 673-689, April.
    2. Moser, Christine M. & Barrett, Christopher B. & Minten, Bart, 2005. "Missed opportunities and missing markets: Spatio-temporal arbitrage of rice in Madagascar," 2005 Annual meeting, July 24-27, Providence, RI 19338, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Kherallah, Mylène & Delgado, Christopher L. & Gabre-Madhin, Eleni Z. & Minot, Nicholas & Johnson, Michael, 2002. "Reforming agricultural markets in Africa," Food policy statements 38, International Food Policy Research Institute (IFPRI).
    4. Islam, Nurul & Thomas, Saji, 1996. "Foodgrain price stabilization in developing countries," Food policy reviews 3, International Food Policy Research Institute (IFPRI).
    5. Christopher B. Barrett & Paul A. Dorosh, 1996. "Farmers' Welfare and Changing Food Prices: Nonparametric Evidence from Rice in Madagascar," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(3), pages 656-669.
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    Cited by:

    1. Maret, Fenohasina, 2007. "Distortions to Agricultural Incentives in Madagascar," Agricultural Distortions Working Paper Series 48551, World Bank.

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