Sales location and supply response among semisubsistence farmers in Benin: A heteroskedastic double selection model

dc.creatorTakeshima, Hiroyuki
dc.creatorWinter-Nelson, Alex
dc.date2010
dc.date2024-10-01T14:04:38Z
dc.date2024-10-01T14:04:38Z
dc.date.accessioned2026-06-27T15:28:20Z
dc.descriptionIn much of rural Africa, high transaction costs limit farmers' market participation and thus their potential for income growth. Transaction costs can affect not only whether a farmer sells product but also whether sales occur at the farm gate on at a market. If production behavior is related to a chosen sales location, then analysis of interventions can be improved by explicit consideration of the decision of where to sell. This paper develops a double-selection model that explains consumption and production decisions by semi-subsistence farmers who first decide whether to be a seller and then whether to sell at the farm gate or at an off-farm location before deciding on production and consumption. The study tests the validity of this dual-criteria model against a single criterion model in which a grower first decides to be a seller and then decides production, consumption and sales location simultaneously. Dual-criteria and single-criterion models are compared while correcting inconsistency in estimations due to violation of homoskedasticity and normality assumptions in selection equations. The results suggest that the dual-criteria model provides more information than the single-criterion model using a sample of cassava producer in Benin.
dc.formatapplication/pdf
dc.identifierhttps://hdl.handle.net/10568/154894
dc.identifier.urihttp://hdl.handle.net/123456789/105408
dc.languageen
dc.publisherInternational Food Policy Research Institute
dc.rightsOpen Access
dc.sourceTakeshima, Hiroyuki; Winter-Nelson, Alex. 2010. Sales location and supply response among semisubsistence farmers in Benin: A heteroskedastic double selection model. IFPRI Discussion Paper 999. https://hdl.handle.net/10568/154894
dc.subjectdevelopment policies
dc.subjecttransaction costs
dc.subjectagricultural growth
dc.titleSales location and supply response among semisubsistence farmers in Benin: A heteroskedastic double selection model
dc.typeWorking Paper

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