RURAL INFRASTRUCTURE, TRANSACTIONS COSTS, AND MARKETED SURPLUS IN KENYA

We develop a conceptual framework for quantifying fixed transactions costs facing semisubsistence households. Using household survey data from a sample of 324 Kenyan maize farmers, we generate estimates of household supply and demand schedules, as well as the price bands that they face. Our econometric results indicate that on average the ad valorem tax equivalent of the fixed transactions costs facing the households in our sample is 28%. Additional analysis indicates that both remoteness and infrastructure quality have significant impacts on the size of the transactions costs facing farm households. To the best of our knowledge, ours are the first empirical estimates of the magnitude of transactions costs.


Subject(s):
Issue Date:
2001
Publication Type:
Conference Paper/ Presentation
PURL Identifier:
http://purl.umn.edu/20668
Total Pages:
27
Series Statement:
Selected paper




 Record created 2017-04-01, last modified 2017-08-22

Fulltext:
Download fulltext
PDF

Rate this document:

Rate this document:
1
2
3
 
(Not yet reviewed)