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Supply response of West African agricultural households

  • Smith, Lisa C.
  • Chavas, Jean-Paul

This paper explores the implications of preference heterogeneity between wives and husbands in nonresource-pooling rural West African households for the effect of crop price changes on agricultural production, i.e., their supply response. A "semi-cooperative" game-theoretic model of household decisionmaking, in which household members make unilateral time and income allocation decisions and negotiate over who controls these resources, is proposed. The model is used to show that Pareto efficiency in both production and consumption do not hold. It is then employed to simulate the supply response to cotton price increases accompanying agricultural sector liberalization in Burkina Faso in the early 1980s. The simulated semi-cooperative model predicts the cotton supply response of (monogamous) Burkinabé households to be 25 percent below that which would ensue in households facing the same production constraints yet whose members have identical preferences. The analysis indicates that in nonresource-pooling agricultural households, preference heterogeneity can be expected to mute supply response and may do so in a quantitatively significant manner. It illustrates how an intrahousehold approach that allows for such heterogeneity and for disaggregation of resource control by gender contributes to a better understanding of price effects.

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Paper provided by International Food Policy Research Institute (IFPRI) in its series FCND discussion papers with number 69.

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Date of creation: 1999
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Handle: RePEc:fpr:fcnddp:69
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  1. de Janvry, Alain & Fafchamps, Marcel & Sadoulet, Elisabeth, 1991. "Peasant Household Behaviour with Missing Markets: Some Paradoxes Explained," Economic Journal, Royal Economic Society, vol. 101(409), pages 1400-417, November.
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  3. Fafchamps, Marcel, 1993. "Sequential Labor Decisions under Uncertainty: An Estimable Household Model of West-African Farmers," Econometrica, Econometric Society, vol. 61(5), pages 1173-97, September.
  4. Lisa C. Smith & Jean-Paul Chavas, 1997. "Commercialization and the Balance of Women's Dual Roles in Non-Income-Pooling West African Households," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(2), pages 589-594.
  5. Smith, Lisa C., 1998. "Macroeconomic Adjustment And The Balance Of Bargaining Power In Rural West African Households," 1998 Annual meeting, August 2-5, Salt Lake City, UT 20865, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
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  15. Safilios-Rothschild, Constantina, 1985. "The Persistence of Women's Invisibility in Agriculture: Theoretical and Policy Lessons from Lesotho and Sierra Leone," Economic Development and Cultural Change, University of Chicago Press, vol. 33(2), pages 299-317, January.
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  19. von Braun, Joachim & Puetz, Detlev & Webb, Patrick, 1989. "Irrigation technology and commercialization of rice in the Gambia: effects on income and nutrition," Research reports 75, International Food Policy Research Institute (IFPRI).
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