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Do the Poor Pay More for Maize in Malawi?

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  • Mussa, Richard

Abstract

The paper uses data from the Third Integrated Household Survey to examine whether or not the poor pay more for maize in Malawi. Two approaches are adopted; an indirect approach which is based on quantity discounting, and a direct approach which is based the relationship between an expensiveness variable and household consumption expenditure. The paper finds that the poor in rural and urban areas pay more for maize. This evidence of a poverty penalty in the maize market is not sensitive to method used. It is found that the poor pay more for maize irrespective of when the maize is purchased. Thus, seasonality does not seem to be behind the observed poverty penalty. The paper also finds that the poverty penalty varies with seasonality.The poverty penalty is significantly more pronounced in the postharvest period when maize is in abundance; it is however reduced in the lean season.

Suggested Citation

  • Mussa, Richard, 2014. "Do the Poor Pay More for Maize in Malawi?," MPRA Paper 54623, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:54623
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    References listed on IDEAS

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    Cited by:

    1. Brian Dillon & Joachim De Weerdt & Ted O’Donoghue, 2021. "Paying More for Less: Why Don’t Households in Tanzania Take Advantage of Bulk Discounts?," The World Bank Economic Review, World Bank, vol. 35(1), pages 148-179.
    2. Stefan Öberg, 2016. "Did the Poor Pay More? Income-related variations in Diet and Food Quality among Urban Households in Sweden 1913-1914," Rivista di storia economica, Società editrice il Mulino, issue 2, pages 211-248.
    3. UNDP Regional Bureau for Africa & Bruno Martorano & Giovanni Andrea Cornia, "undated". "The Dynamics of Income Inequality in a Dualistic Economy: Malawi over 1990-2011," UNDP Africa Policy Notes 2017-13, United Nations Development Programme, Regional Bureau for Africa.
    4. Christine M. Sauer & Thomas Reardon & Nicole M. Mason, 2023. "The poor do not pay more: Evidence from Tanzanian consumer food expenditures controlling for the food environment," Agricultural Economics, International Association of Agricultural Economists, vol. 54(5), pages 638-661, September.
    5. Mussa, Richard, 2017. "Long-term Effects of Early Life Maize Yield on Maize Productivity and Efficiency in Rural Malawi," MPRA Paper 75975, University Library of Munich, Germany.
    6. Cornia, Giovanni Andrea & Martorano, Bruno, 2017. "Income Inequality Trends in sub-Saharan Africa: Divergence, determinants and consequences: The Dynamics of Income Inequality in a Dualistic Economy: Malawi over 1990-2011," UNDP Africa Reports 267648, United Nations Development Programme (UNDP).
    7. Giovanni Andrea Cornia & Bruno Martorano, "undated". "The dynamics of income inequality in a dualistic economy – Malawi," UNDP Africa Policy Notes 2017-01, United Nations Development Programme, Regional Bureau for Africa.
    8. repec:rac:ecchap:2017-13 is not listed on IDEAS

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    More about this item

    Keywords

    Poverty penalty; quantity discounting; Malawi;
    All these keywords.

    JEL classification:

    • D1 - Microeconomics - - Household Behavior

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