Dynamic supply response of farm households in Ethiopia

We study the dynamics of the supply response of smallholder grain producers to changes in crop prices and costs of production in Ethiopia. We develop an intertemporal acreage demand allocation model of a representative household under a rational expectations hypothesis. An estimable acreage demand e...

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Autores principales: Bachewe, Fantu Nisrane, Taffesse, Alemayehu Seyoum
Formato: Artículo preliminar
Lenguaje:Inglés
Publicado: International Food Policy Research Institute 2015
Materias:
Acceso en línea:https://hdl.handle.net/10568/151371
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author Bachewe, Fantu Nisrane
Taffesse, Alemayehu Seyoum
author_browse Bachewe, Fantu Nisrane
Taffesse, Alemayehu Seyoum
author_facet Bachewe, Fantu Nisrane
Taffesse, Alemayehu Seyoum
author_sort Bachewe, Fantu Nisrane
collection Repository of Agricultural Research Outputs (CGSpace)
description We study the dynamics of the supply response of smallholder grain producers to changes in crop prices and costs of production in Ethiopia. We develop an intertemporal acreage demand allocation model of a representative household under a rational expectations hypothesis. An estimable acreage demand equation is derived and estimated for teff, an important staple grain in Ethiopia. We apply systems and linear dynamic panel data models to a data set covering a time period marked with remarkable agricultural and macroeconomic growth and smallholder-focused economic policies. The results indicate that teff acreage demand increases faster than permanent increases in real teff prices, and it rises by a third of temporary price increases. Moreover, teff acreage demand declines with increases in the opportunity cost of producing teff.
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spelling CGSpace1513712025-12-08T10:29:22Z Dynamic supply response of farm households in Ethiopia Bachewe, Fantu Nisrane Taffesse, Alemayehu Seyoum economic theory data analysis teff supply balance demand smallholders incentives prices We study the dynamics of the supply response of smallholder grain producers to changes in crop prices and costs of production in Ethiopia. We develop an intertemporal acreage demand allocation model of a representative household under a rational expectations hypothesis. An estimable acreage demand equation is derived and estimated for teff, an important staple grain in Ethiopia. We apply systems and linear dynamic panel data models to a data set covering a time period marked with remarkable agricultural and macroeconomic growth and smallholder-focused economic policies. The results indicate that teff acreage demand increases faster than permanent increases in real teff prices, and it rises by a third of temporary price increases. Moreover, teff acreage demand declines with increases in the opportunity cost of producing teff. 2015-09-18 2024-08-01T02:56:55Z 2024-08-01T02:56:55Z Working Paper https://hdl.handle.net/10568/151371 en Open Access application/pdf International Food Policy Research Institute Ethiopian Development Research Institute Bachewe, Fantu Nisrane and Taffesse, Alemayehu Seyoum. 2015. Dynamic supply response of farm households in Ethiopia. ESSP II Working Paper 78. Washington, DC and Addis Ababa, Ethiopia: International Food Policy Research Institute and Ethiopian Development Research Institute (EDRI). https://hdl.handle.net/10568/151371
spellingShingle economic theory
data analysis
teff
supply balance
demand
smallholders
incentives
prices
Bachewe, Fantu Nisrane
Taffesse, Alemayehu Seyoum
Dynamic supply response of farm households in Ethiopia
title Dynamic supply response of farm households in Ethiopia
title_full Dynamic supply response of farm households in Ethiopia
title_fullStr Dynamic supply response of farm households in Ethiopia
title_full_unstemmed Dynamic supply response of farm households in Ethiopia
title_short Dynamic supply response of farm households in Ethiopia
title_sort dynamic supply response of farm households in ethiopia
topic economic theory
data analysis
teff
supply balance
demand
smallholders
incentives
prices
url https://hdl.handle.net/10568/151371
work_keys_str_mv AT bachewefantunisrane dynamicsupplyresponseoffarmhouseholdsinethiopia
AT taffessealemayehuseyoum dynamicsupplyresponseoffarmhouseholdsinethiopia