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Farmers' Subjective Valuation of Subsistence Crops: The Case of Traditional Maize in Mexico

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  • Arslan, Aslihan
  • Taylor, J. Edward

Abstract

Shadow prices guide farmers' resource allocations, but for subsistence farmers growing traditional crops, shadow prices may bear little relationship with market prices. We econometrically estimate shadow prices of maize using data from a nationally representative survey of rural households in Mexico. Shadow prices are significantly higher than the market price for traditional but not improved maize varieties. They are particularly high in the indigenous areas of southern and southeastern Mexico, indicating large de facto incentives to maintain traditional maize there.

Suggested Citation

  • Arslan, Aslihan & Taylor, J. Edward, 2008. "Farmers' Subjective Valuation of Subsistence Crops: The Case of Traditional Maize in Mexico," Working Papers 44488, University of California, Davis, Department of Agricultural and Resource Economics.
    • Handle: RePEc:ags:ucdavw:44488
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    References listed on IDEAS

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    1. Wendy Dobson & Gary Clyde Hufbauer & Hyun Koo Cho, 2001. "World Capital Markets: Challenge to the G-10," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 328.
    2. Rolf J. Langhammer, 2004. "Halving Poverty by Doubling Aid: Is There Reason for Optimism?," The World Economy, Wiley Blackwell, vol. 27(1), pages 81-98, January.
    3. Peter H. Lindert & Jeffrey G. Williamson, 2003. "Does Globalization Make the World More Unequal?," NBER Chapters,in: Globalization in Historical Perspective, pages 227-276 National Bureau of Economic Research, Inc.
    4. Dani Rodrik, 2007. "Introductiion to One Economics, Many Recipes: Globalization, Institutions, and Economic Growth," Introductory Chapters,in: One Economics, Many Recipes: Globalization, Institutions, and Economic Growth Princeton University Press.
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    Cited by:

    1. Hoffmann, Vivian & Gatobu, Ken Mwithirwa, 2014. "Growing their own: Unobservable quality and the value of self-provisioning," Journal of Development Economics, Elsevier, vol. 106(C), pages 168-178.
    2. Mateusz J. Filipski & J. Edward Taylor & Karen E. Thome & Benjamin Davis, 2015. "Effects of treatment beyond the treated: a general equilibrium impact evaluation of Lesotho's cash grants program," Agricultural Economics, International Association of Agricultural Economists, vol. 46(2), pages 227-243, March.
    3. Kirsten Appendini & Ma. Guadalupe Quijada, 2016. "Consumption strategies in Mexican rural households: pursuing food security with quality," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 33(2), pages 439-454, June.
    4. Dyer, George A. & Taylor, J. Edward, 2011. "The Corn Price Surge: Impacts on Rural Mexico," World Development, Elsevier, vol. 39(10), pages 1878-1887.
    5. repec:spr:agrhuv:v:34:y:2017:i:2:d:10.1007_s10460-016-9720-5 is not listed on IDEAS
    6. Manning, Dale T. & Taylor, J. Edward, 2015. "Agricultural Efficiency and Labor Supply to Common Property Resource Collection: Lessons from Rural Mexico," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 40(3), August.
    7. Bellon, Mauricio R. & Hellin, Jon, 2011. "Planting Hybrids, Keeping Landraces: Agricultural Modernization and Tradition Among Small-Scale Maize Farmers in Chiapas, Mexico," World Development, Elsevier, vol. 39(8), pages 1434-1443, August.
    8. Bellon, Mauricio R. & Gotor, Elisabetta & Caracciolo, Francesco, 2015. "Assessing the Effectiveness of Projects Supporting On-Farm Conservation of Native Crops: Evidence From the High Andes of South America," World Development, Elsevier, vol. 70(C), pages 162-176.
    9. Parisa Aghajanzadeh-Darzi & Pierre-Alain Jayet & Athanasios Petsakos, 2017. "Improvement of a Bio-Economic Mathematical Programming Model in the Case of On-Farm Source Inputs and Outputs," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 15(3), pages 489-508, September.
    10. Useche, Pilar & Blare, Trent, 2012. "Seeds of Gold: How Environmental Considerations Influence Cacao Production Decisions for Small Landholder Households in Northwestern Ecuador," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124738, Agricultural and Applied Economics Association.
    11. Arslan, Aslihan & McCarthy, Nancy & Lipper, Leslie & Asfaw, Solomon & Cattaneo, Andrea, 2013. "Adoption and Intensity of Adoption of Conservation Farming Practices in Zambia," Food Security Collaborative Working Papers 147461, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    12. Useche, Pilar & Blare, Trent, 2013. "Traditional vs. modern production systems: Price and nonmarket considerations of cacao producers in Northern Ecuador," Ecological Economics, Elsevier, vol. 93(C), pages 1-10.
    13. Krishna, Vijesh V. & Drucker, Adam G. & Pascual, Unai & Raghu, Prabhakaran T. & King, E.D. Israel Oliver, 2013. "Estimating compensation payments for on-farm conservation of agricultural biodiversity in developing countries," Ecological Economics, Elsevier, vol. 87(C), pages 110-123.
    14. repec:eee:jpolmo:v:39:y:2017:i:5:p:741-761 is not listed on IDEAS
    15. Isakson, S. Ryan, 2011. "Market Provisioning and the Conservation of Crop Biodiversity: An Analysis of Peasant Livelihoods and Maize Diversity in the Guatemalan Highlands," World Development, Elsevier, vol. 39(8), pages 1444-1459, August.

    More about this item

    Keywords

    Shadow prices; non-market values; supply response; traditional crops; onfarm conservation; Mexico; Agricultural and Food Policy; Community/Rural/Urban Development; International Development; O12; O13; Q12; Q39;

    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q39 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Other

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