Subsidies and Crowding Out: A Double‐Hurdle Model of Fertilizer Demand in Malawi

American Journal of Agricultural Economics - Tập 93 Số 1 - Trang 26-42 - 2011
Jacob Ricker‐Gilbert1, Thomas S. Jayne2, Ephraim Chirwa3
1Department of Agricultural, Food, and Resource Economics Michigan State University
2International Development in the Department of Agricultural, Food, and Resource Economics Michigan State University
3Chancellor College University of Malawi

Tóm tắt

This article uses a double‐hurdle model with panel data from Malawi to investigate how fertilizer subsidies affect farmer demand for commercial fertilizer. The article controls for potential endogeneity caused by the nonrandom targeting of fertilizer subsidy recipients. Results show that on average 1 additional kilogram of subsidized fertilizer crowds out 0.22 kg of commercial fertilizer, but crowding out ranges from 0.18 among the poorest farmers to 0.30 among relatively nonpoor farmers. This indicates that targeting fertilizer subsidies to the rural poor is likely to maximize the contribution of the subsidy program to total fertilizer use.

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Thông tin xuất bản

American Journal of Agricultural Economics

Tập 93 Số 1

26-42

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