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Smallholder Behavioral Responses to Marketing Board Activities in a Dual Channel Marketing System: The Case of Maize in Zambia

  • Mason, Nicole M.
  • Jayne, Thomas S.
  • Myers, Robert J.

This paper develops a conceptual model of farmers’ production decisions in the context of dual output marketing channels (e.g., government and private sector) when prices at harvest time and the availability of one of the channels are unknown at planting time. It then uses the operationalized model to estimate the marginal effects of Food Reserve Agency (FRA) policies on smallholder behavior in Zambia. Results suggest that increases in the FRA farmgate maize price influence smallholders’ production decisions by raising their expected maize price. Smallholders respond to an increase in the FRA price by both intensifying and extensifying their maize production.

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File URL: http://purl.umn.edu/126927
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Paper provided by International Association of Agricultural Economists in its series 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil with number 126927.

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Date of creation: 2012
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Handle: RePEc:ags:iaae12:126927
Contact details of provider: Web page: http://www.iaae-agecon.org/
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  1. Jayne, T. S. & Govereh, J. & Mwanaumo, A. & Nyoro, J. K. & Chapoto, A., 2002. "False Promise or False Premise? The Experience of Food and Input Market Reform in Eastern and Southern Africa," World Development, Elsevier, vol. 30(11), pages 1967-1985, November.
  2. Jayne, Thomas S. & Yamano, Takashi & Weber, Michael T. & Tschirley, David L. & Benfica, Rui M.S. & Neven, David & Chapoto, Antony & Zulu, Ballard, 2001. "Smallholder Income and Land Distribution in Africa: Implications for Poverty Reduction Strategies," Food Security International Development Papers 54047, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  3. Banful, Afua Branoah, 2011. "Old Problems in the New Solutions? Politically Motivated Allocation of Program Benefits and the "New" Fertilizer Subsidies," World Development, Elsevier, vol. 39(7), pages 1166-1176, July.
  4. Jacob Ricker-Gilbert & Thomas S. Jayne & Ephraim Chirwa, 2010. "Subsidies and Crowding Out: A Double-Hurdle Model of Fertilizer Demand in Malawi," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 93(1), pages 26-42.
  5. Fan, Shenggen & Gulati, Ashok & Thorat, Sukhadeo, 2007. "Investment, subsidies, and pro-poor growth in rural India:," IFPRI discussion papers 716, International Food Policy Research Institute (IFPRI).
  6. T. S. Jayne & Robert J. Myers & James Nyoro, 2008. "The effects of NCPB marketing policies on maize market prices in Kenya," Agricultural Economics, International Association of Agricultural Economists, vol. 38(3), pages 313-325, 05.
  7. Rivers, Douglas & Vuong, Quang H., 1988. "Limited information estimators and exogeneity tests for simultaneous probit models," Journal of Econometrics, Elsevier, vol. 39(3), pages 347-366, November.
  8. Nerlove, Marc & Fornari, Ilaria, 1998. "Quasi-rational expectations, an alternative to fully rational expectations: An application to US beef cattle supply," Journal of Econometrics, Elsevier, vol. 83(1-2), pages 129-161.
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