Effects of transaction costs on supply response and marketed surplus: simulations using non-separable household models
This paper explores the effect of transaction costs on aggregate supply and demand and marketed surplus. A five-good non-separable household model is used to illustrate the effect of transaction costs on a generic African household. Then, the paper examines the aggregate behavior of a market consist...
| Autor principal: | |
|---|---|
| Formato: | Artículo preliminar |
| Lenguaje: | Inglés |
| Publicado: |
International Food Policy Research Institute
1999
|
| Materias: | |
| Acceso en línea: | https://hdl.handle.net/10568/161299 |
| _version_ | 1855533097738567680 |
|---|---|
| author | Minot, Nicholas |
| author_browse | Minot, Nicholas |
| author_facet | Minot, Nicholas |
| author_sort | Minot, Nicholas |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | This paper explores the effect of transaction costs on aggregate supply and demand and marketed surplus. A five-good non-separable household model is used to illustrate the effect of transaction costs on a generic African household. Then, the paper examines the aggregate behavior of a market consisting of 50 such households with varying production capacities. The simulations reveal that transaction costs not only decrease market surplus but that they can substantially reduce the elasticity of supply and demand. Under other circumstances (when almost all households are net sellers), transaction costs can also make supply and demand more elastic. Finally, the results show that transaction costs generally increase the price elasticity of marketed surplus. The implications for research in agricultural marketing are discussed. |
| format | Artículo preliminar |
| id | CGSpace161299 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 1999 |
| publishDateRange | 1999 |
| publishDateSort | 1999 |
| publisher | International Food Policy Research Institute |
| publisherStr | International Food Policy Research Institute |
| record_format | dspace |
| spelling | CGSpace1612992025-11-06T07:02:18Z Effects of transaction costs on supply response and marketed surplus: simulations using non-separable household models Minot, Nicholas markets prices price regulation This paper explores the effect of transaction costs on aggregate supply and demand and marketed surplus. A five-good non-separable household model is used to illustrate the effect of transaction costs on a generic African household. Then, the paper examines the aggregate behavior of a market consisting of 50 such households with varying production capacities. The simulations reveal that transaction costs not only decrease market surplus but that they can substantially reduce the elasticity of supply and demand. Under other circumstances (when almost all households are net sellers), transaction costs can also make supply and demand more elastic. Finally, the results show that transaction costs generally increase the price elasticity of marketed surplus. The implications for research in agricultural marketing are discussed. 1999 2024-11-21T09:54:44Z 2024-11-21T09:54:44Z Working Paper https://hdl.handle.net/10568/161299 en Open Access application/pdf International Food Policy Research Institute Minot, Nicholas. 1999. Effects of transaction costs on supply response and marketed surplus;simulations using non-separable household models. MTID Discussion Paper 36. https://hdl.handle.net/10568/161299 |
| spellingShingle | markets prices price regulation Minot, Nicholas Effects of transaction costs on supply response and marketed surplus: simulations using non-separable household models |
| title | Effects of transaction costs on supply response and marketed surplus: simulations using non-separable household models |
| title_full | Effects of transaction costs on supply response and marketed surplus: simulations using non-separable household models |
| title_fullStr | Effects of transaction costs on supply response and marketed surplus: simulations using non-separable household models |
| title_full_unstemmed | Effects of transaction costs on supply response and marketed surplus: simulations using non-separable household models |
| title_short | Effects of transaction costs on supply response and marketed surplus: simulations using non-separable household models |
| title_sort | effects of transaction costs on supply response and marketed surplus simulations using non separable household models |
| topic | markets prices price regulation |
| url | https://hdl.handle.net/10568/161299 |
| work_keys_str_mv | AT minotnicholas effectsoftransactioncostsonsupplyresponseandmarketedsurplussimulationsusingnonseparablehouseholdmodels |