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The Effect of Household Wealth on Input Market Participation in Southern Africa

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  • Langyintuo, Augustine S.
  • Mungoma, Catherine

Abstract

Input technological change, fundamental to rural transformation, sometimes bypasses some rural populations because farmers are often reluctant to use new inputs due to production and price risks that could render their use unprofitable. The level of wealth of the household significantly relates to the household's ability to cope with such risks. Given the highly disproportionate distribution of wealth among rural households, this paper demonstrated that first stratifying households into meaningful wealth categories and estimating non-separable household improved variety adoption and seed demand models for each wealth category provides an opportunity to develop credible policy relevant recommendations on interventions that increase impact. This approach contributes significantly to the methodological challenges of assessing seed demand in developing agriculture.

Suggested Citation

  • Langyintuo, Augustine S. & Mungoma, Catherine, 2006. "The Effect of Household Wealth on Input Market Participation in Southern Africa," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25630, International Association of Agricultural Economists.
  • Handle: RePEc:ags:iaae06:25630
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    File URL: http://purl.umn.edu/25630
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    References listed on IDEAS

    as
    1. Jayne, T. S. & Govereh, J. & Wanzala, M. & Demeke, M., 2003. "Fertilizer market development: a comparative analysis of Ethiopia, Kenya, and Zambia," Food Policy, Elsevier, vol. 28(4), pages 293-316, August.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Wealth index; improved maize variety; consumption characteristics; production attributes; derived input; technological change; censored regression; Zambia; Consumer/Household Economics; C12; D1; I3; Q12; Q13;

    JEL classification:

    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • D1 - Microeconomics - - Household Behavior
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness

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