Rural Policies, Price Change and Poverty in Tanzania: an Agricultural Household Model-Based Assessment
Exogenous shocks to farmers’ consumption, production and labour market decisions are rarely considered accurately. For farm households, under labour market imperfections, such decisions are often interlinked. This calls for non-separable agricultural household models. According to this framework, second-order (or behavioural) effects include a direct (i.e., supply or demand reactions due to an exogenous shock) and an indirect (i.e., supply or demand adjustments to the endogenous variations in the shadow wage generated by the exogenous shock) component. Under large price changes or following structural interventions, such as those concerning land redistribution or mechanization practices, neglecting such second-order effects on consumption and production can bias the final impact on household welfare. The main objective of this study is thus to develop a robust and comprehensive tool to evaluate the effect on household welfare of different agricultural policies in Tanzania and food price changes. A two-stage estimation strategy is adopted: the shadow price of labour is first estimated and then used to estimate production and demand systems as well as labour market functions. These models are subsequently used to simulate the effect on household welfare of a hypothetical 40% increase in the price of cereals and other crops and a hypothetical 10% increase in the hectares of arable land and in the use of ox-ploughs. The results are finally compared with the case in which a separable model is adopted.
|Date of creation:||2012|
|Date of revision:|
|Contact details of provider:|| Postal: CP 8888, succursale Centre-Ville, Montréal, QC H3C 3P8|
Phone: (514) 987-8161
Web page: http://www.cirpee.org/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Fulginiti, Lilyan E. & Perrin, Richard, 1990.
"Argentine Agricultural Policy in a Multiple-Input, Multiple-Output Framework,"
Staff General Research Papers
277, Iowa State University, Department of Economics.
- Lilyan E. Fulginiti & Richard K. Perrin, 1990. "Argentine Agricultural Policy in a Multiple-Input, Multiple-Output Framework," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 72(2), pages 279-288.
- Dorward, Andrew & Kydd, Jonathan & Morrison, Jamie & Urey, Ian, 2002.
"A Policy Agenda For Pro Poor Agricultural Growth,"
ADU Working Papers
10923, Imperial College at Wye, Department of Agricultural Sciences.
- Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-26, June.
- Henning, Christian H.C.A. & Henningsen, Arne, 2007. "AJAE Appendix: Modeling Farm Households' Price Responses in the Presence of Transaction Costs and Heterogeneity in Labor Markets," American Journal of Agricultural Economics Appendices, Agricultural and Applied Economics Association, vol. 89(3), August.
- 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.
- Christian H.C.A. Henning & Arne Henningsen, 2007. "Modeling Farm Households' Price Responses in the Presence of Transaction Costs and Heterogeneity in Labor Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(3), pages 665-681.
- Haggblade, Steven & Hazell, Peter B. R. & Reardon, Thomas, 2009. "Transforming the rural nonfarm economy: Opportunities and threats in the developing world," Issue briefs 58, International Food Policy Research Institute (IFPRI).
- Abdulai, Awudu & Regmi, Punya Prasad, 2000.
"Estimating labor supply of farm households under nonseparability: empirical evidence from Nepal,"
Agricultural Economics of Agricultural Economists,
International Association of Agricultural Economists, vol. 22(3), April.
- Abdulai, Awudu & Regmi, Punya Prasad, 2000. "Estimating labor supply of farm households under nonseparability: empirical evidence from Nepal," Agricultural Economics, Blackwell, vol. 22(3), pages 309-320, April.
- Hazell, Peter B. & Haggblade, Steven, 1990. "Rural - urban growth linkages in India," Policy Research Working Paper Series 430, The World Bank.
- J. Taylor & Irma Adelman, 2003. "Agricultural Household Models: Genesis, Evolution, and Extensions," Review of Economics of the Household, Springer, vol. 1(1), pages 33-58, January.
- Pauw, Karl & Thurlow, James, 2011.
"Agricultural growth, poverty, and nutrition in Tanzania,"
Elsevier, vol. 36(6), pages 795-804.
- Pauw, Karl & Thurlow, James, 2010. "Agricultural growth, poverty, and nutrition in Tanzania:," IFPRI discussion papers 947, International Food Policy Research Institute (IFPRI).
- Pauw, Kalie & Thurlow, James, 2010. "Agricultural Growth, Poverty, and Nutrition in Tanzania," 2010 AAAE Third Conference/AEASA 48th Conference, September 19-23, 2010, Cape Town, South Africa 95974, African Association of Agricultural Economists (AAAE);Agricultural Economics Association of South Africa (AEASA).
- Olson, Dennis & Zoubi, Taisier A., 2011. "Efficiency and bank profitability in MENA countries," Emerging Markets Review, Elsevier, vol. 12(2), pages 94-110, June.
- Davidson, Russell & Duclos, Jean-Yves, 1998.
"Statistical Inference for Stochastic Dominance and for the Measurement of Poverty and Inequality,"
Cahiers de recherche
9805, Université Laval - Département d'économique.
- Russell Davidson & Jean-Yves Duclos, 2000. "Statistical Inference for Stochastic Dominance and for the Measurement of Poverty and Inequality," Econometrica, Econometric Society, vol. 68(6), pages 1435-1464, November.
- Davidson, R. & Duclos, J.-Y., 1998. "Statistical Inference for Stochastic Dominance and for the Measurement of Poverty and Inequality," G.R.E.Q.A.M. 98a14, Universite Aix-Marseille III.
- Hanan G. Jacoby, 1993. "Shadow Wages and Peasant Family Labour Supply: An Econometric Application to the Peruvian Sierra," Review of Economic Studies, Oxford University Press, vol. 60(4), pages 903-921.
- Ravallion, Martin & Datt, Gaurav, 1996. "How Important to India's Poor Is the Sectoral Composition of Economic Growth?," World Bank Economic Review, World Bank Group, vol. 10(1), pages 1-25, January.
When requesting a correction, please mention this item's handle: RePEc:lvl:lacicr:1229. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Manuel Paradis)
If references are entirely missing, you can add them using this form.