Transaction costs and market institutions: grain brokers in Ethiopia

This paper examines the effect of transaction costs of search on the institution of grain brokers in Ethiopia. Primary data are used to derive traders’ shadow opportunity costs of labor and of capital from IV estimation of net profits. A two-step Tobit model is used in which traders first choose whe...

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Autor principal: Gabre-Madhin, Eleni Zaude
Formato: Artículo preliminar
Lenguaje:Inglés
Publicado: International Food Policy Research Institute 1999
Materias:
Acceso en línea:https://hdl.handle.net/10568/161364
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author Gabre-Madhin, Eleni Zaude
author_browse Gabre-Madhin, Eleni Zaude
author_facet Gabre-Madhin, Eleni Zaude
author_sort Gabre-Madhin, Eleni Zaude
collection Repository of Agricultural Research Outputs (CGSpace)
description This paper examines the effect of transaction costs of search on the institution of grain brokers in Ethiopia. Primary data are used to derive traders’ shadow opportunity costs of labor and of capital from IV estimation of net profits. A two-step Tobit model is used in which traders first choose where to trade and then choose whether to use a broker to search on their behalf. The results confirm traders’ individual rationality in choosing brokerage, showing high transaction costs are linked to increased broker use while high social capital reduces broker use.
format Artículo preliminar
id CGSpace161364
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 CGSpace1613642025-11-06T06:34:27Z Transaction costs and market institutions: grain brokers in Ethiopia Gabre-Madhin, Eleni Zaude grain economic aspects prices trade governance This paper examines the effect of transaction costs of search on the institution of grain brokers in Ethiopia. Primary data are used to derive traders’ shadow opportunity costs of labor and of capital from IV estimation of net profits. A two-step Tobit model is used in which traders first choose where to trade and then choose whether to use a broker to search on their behalf. The results confirm traders’ individual rationality in choosing brokerage, showing high transaction costs are linked to increased broker use while high social capital reduces broker use. 1999 2024-11-21T09:55:12Z 2024-11-21T09:55:12Z Working Paper https://hdl.handle.net/10568/161364 en Open Access application/pdf International Food Policy Research Institute Gabre-Madhin, Eleni Zaude. 1999. Transaction costs and market institutions;grain brokers in Ethiopia. MTID Discussion Paper 31. https://hdl.handle.net/10568/161364
spellingShingle grain
economic aspects
prices
trade
governance
Gabre-Madhin, Eleni Zaude
Transaction costs and market institutions: grain brokers in Ethiopia
title Transaction costs and market institutions: grain brokers in Ethiopia
title_full Transaction costs and market institutions: grain brokers in Ethiopia
title_fullStr Transaction costs and market institutions: grain brokers in Ethiopia
title_full_unstemmed Transaction costs and market institutions: grain brokers in Ethiopia
title_short Transaction costs and market institutions: grain brokers in Ethiopia
title_sort transaction costs and market institutions grain brokers in ethiopia
topic grain
economic aspects
prices
trade
governance
url https://hdl.handle.net/10568/161364
work_keys_str_mv AT gabremadhinelenizaude transactioncostsandmarketinstitutionsgrainbrokersinethiopia