Optimal pricing of primary commodities in developing countries: A model from sub-Saharan Africa

In most developing countries, especially in sub-Saharan Africa, prices received by farmers are not optimal in the sense that they do not optimize government revenues. In this paper a dynamic model for optimal pricing of primary commodities is developed. The model and results demonstrate that optimal...

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Bibliographic Details
Main Author: Ehui, Simeon K.
Format: Conference Paper
Language:Inglés
Published: IAEA 1997
Subjects:
Online Access:https://hdl.handle.net/10568/50901
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author Ehui, Simeon K.
author_browse Ehui, Simeon K.
author_facet Ehui, Simeon K.
author_sort Ehui, Simeon K.
collection Repository of Agricultural Research Outputs (CGSpace)
description In most developing countries, especially in sub-Saharan Africa, prices received by farmers are not optimal in the sense that they do not optimize government revenues. In this paper a dynamic model for optimal pricing of primary commodities is developed. The model and results demonstrate that optimal prices depend on marginal cost of the commodity stock, the exporting country's supply elasticity, the importing country's demand elasticity, the social rate of time discount. Therefore when the model is cast in a static framework, or the foreign elasticity of demand is not accounted for, the result could be biased.
format Conference Paper
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publishDate 1997
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spelling CGSpace509012021-10-08T13:11:48Z Optimal pricing of primary commodities in developing countries: A model from sub-Saharan Africa Ehui, Simeon K. agricultural products commodity markets price fixing models prices exports taxes imports demand In most developing countries, especially in sub-Saharan Africa, prices received by farmers are not optimal in the sense that they do not optimize government revenues. In this paper a dynamic model for optimal pricing of primary commodities is developed. The model and results demonstrate that optimal prices depend on marginal cost of the commodity stock, the exporting country's supply elasticity, the importing country's demand elasticity, the social rate of time discount. Therefore when the model is cast in a static framework, or the foreign elasticity of demand is not accounted for, the result could be biased. 1997 2014-10-31T06:21:48Z 2014-10-31T06:21:48Z Conference Paper https://hdl.handle.net/10568/50901 en Limited Access IAEA
spellingShingle agricultural products
commodity markets
price fixing
models
prices
exports
taxes
imports
demand
Ehui, Simeon K.
Optimal pricing of primary commodities in developing countries: A model from sub-Saharan Africa
title Optimal pricing of primary commodities in developing countries: A model from sub-Saharan Africa
title_full Optimal pricing of primary commodities in developing countries: A model from sub-Saharan Africa
title_fullStr Optimal pricing of primary commodities in developing countries: A model from sub-Saharan Africa
title_full_unstemmed Optimal pricing of primary commodities in developing countries: A model from sub-Saharan Africa
title_short Optimal pricing of primary commodities in developing countries: A model from sub-Saharan Africa
title_sort optimal pricing of primary commodities in developing countries a model from sub saharan africa
topic agricultural products
commodity markets
price fixing
models
prices
exports
taxes
imports
demand
url https://hdl.handle.net/10568/50901
work_keys_str_mv AT ehuisimeonk optimalpricingofprimarycommoditiesindevelopingcountriesamodelfromsubsaharanafrica