Separability, spillovers, and segmented markets: Evidence from dairy in India
A long history of empirical research has focused on testing whether and when household consumption and production decisions are separable. If markets were perfect, household consumption would be independent of production. In this article, we propose that market channel choice complicates this relati...
| Main Authors: | , , |
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| Format: | Journal Article |
| Language: | Inglés |
| Published: |
International Association of Agricultural Economists
2023
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| Subjects: | |
| Online Access: | https://hdl.handle.net/10568/140397 |
| _version_ | 1855537159202668544 |
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| author | Narayanan, Sudha Negi, Digvijay Singh Gupta, Tanu |
| author_browse | Gupta, Tanu Narayanan, Sudha Negi, Digvijay Singh |
| author_facet | Narayanan, Sudha Negi, Digvijay Singh Gupta, Tanu |
| author_sort | Narayanan, Sudha |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | A long history of empirical research has focused on testing whether and when household consumption and production decisions are separable. If markets were perfect, household consumption would be independent of production. In this article, we propose that market channel choice complicates this relationship. Our analysis of household panel data from rural India, focusing on dairy, leads us to four key conclusions. First, milk consumption is correlated with production, and markets are not a complete substitute for household production. Second, a large presence of formal milk buyers in a village is associated with lower milk consumption in dairy households, overturning the positive association of participation in formal value chains with household milk consumption. Third, contrary to expectations, for households that do not own dairy animals and net buyers, the presence of formal value chains remains uncorrelated with milk consumption. Fourth, we infer, test for and find suggestive evidence of segmented milk markets, that is, different types of households participate in different markets for milk that do not seem to interact with each other. Policymakers focused on market development or production-based strategies need to factor in the possibility of market segmentation based on market channels while designing interventions. |
| format | Journal Article |
| id | CGSpace140397 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2023 |
| publishDateRange | 2023 |
| publishDateSort | 2023 |
| publisher | International Association of Agricultural Economists |
| publisherStr | International Association of Agricultural Economists |
| record_format | dspace |
| spelling | CGSpace1403972025-10-26T13:01:22Z Separability, spillovers, and segmented markets: Evidence from dairy in India Narayanan, Sudha Negi, Digvijay Singh Gupta, Tanu milk production value chains data analysis data milk household consumption A long history of empirical research has focused on testing whether and when household consumption and production decisions are separable. If markets were perfect, household consumption would be independent of production. In this article, we propose that market channel choice complicates this relationship. Our analysis of household panel data from rural India, focusing on dairy, leads us to four key conclusions. First, milk consumption is correlated with production, and markets are not a complete substitute for household production. Second, a large presence of formal milk buyers in a village is associated with lower milk consumption in dairy households, overturning the positive association of participation in formal value chains with household milk consumption. Third, contrary to expectations, for households that do not own dairy animals and net buyers, the presence of formal value chains remains uncorrelated with milk consumption. Fourth, we infer, test for and find suggestive evidence of segmented milk markets, that is, different types of households participate in different markets for milk that do not seem to interact with each other. Policymakers focused on market development or production-based strategies need to factor in the possibility of market segmentation based on market channels while designing interventions. 2023-11 2024-03-14T12:09:27Z 2024-03-14T12:09:27Z Journal Article https://hdl.handle.net/10568/140397 en Open Access International Association of Agricultural Economists Narayanan, Sudha; Negi, Digvijay S.; and Gupta, Tanu. Separability, spillovers, and segmented markets: Evidence from dairy in India. Agricultural Economics 54(6): 884-899. https://doi.org/10.1111/agec.12786 |
| spellingShingle | milk production value chains data analysis data milk household consumption Narayanan, Sudha Negi, Digvijay Singh Gupta, Tanu Separability, spillovers, and segmented markets: Evidence from dairy in India |
| title | Separability, spillovers, and segmented markets: Evidence from dairy in India |
| title_full | Separability, spillovers, and segmented markets: Evidence from dairy in India |
| title_fullStr | Separability, spillovers, and segmented markets: Evidence from dairy in India |
| title_full_unstemmed | Separability, spillovers, and segmented markets: Evidence from dairy in India |
| title_short | Separability, spillovers, and segmented markets: Evidence from dairy in India |
| title_sort | separability spillovers and segmented markets evidence from dairy in india |
| topic | milk production value chains data analysis data milk household consumption |
| url | https://hdl.handle.net/10568/140397 |
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