IDEAS home Printed from https://ideas.repec.org/p/ags/iffp12/97388.html

Transaction Costs and Market Institutions: Grain Brokers in Ethiopia

Author

Listed:
  • Gabre-Madhin, Eleni Z.

Abstract

This paper examines the effect of transaction costs of search on the institution of grain brokers in Ethiopia. Primary data are used to derive traders’ shadow opportunity costs of labor and of capital from IV estimation of net profits. A twostep Tobit model is used in which traders first choose where to trade and then choose whether to use a broker to search on their behalf. The results confirm traders’ individual rationality in choosing brokerage, showing high transaction costs are linked to increased broker use while high social capital reduces broker use.

Suggested Citation

  • Gabre-Madhin, Eleni Z., 1999. "Transaction Costs and Market Institutions: Grain Brokers in Ethiopia," Papers 97388, MTID Discussion Papers.
    • Handle: RePEc:ags:iffp12:97388
    DOI: 10.22004/ag.econ.97388
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/97388/files/Transaction%20Costs%20and%20Market%20Institutions.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.97388?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
    ---><---

    More about this item

    Keywords

    ;

    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:ags:iffp12:97388. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/ifprius.html .

    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.