A test of whether millet acreage in Niger is determined by official or private market prices
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Niger has two separate marketing channels for grain: one is the official system operated
by the government; the other is a parallel channel of private traders. Researchers or policymakers
wanting to study effects of price policies on producers are faced with two sets of
prices. This paper seeks to answer the question, which prices matter? Non-nested hypothesis
tests are conducted for millet-acreage response equations. The results show that prices from
the larger private market are the prices that matter.