Dynamic supply response of farm households in Ethiopia

dc.creatorBachewe, Fantu Nisrane
dc.creatorTaffesse, Alemayehu Seyoum
dc.date2015-09-18
dc.date2024-08-01T02:56:55Z
dc.date2024-08-01T02:56:55Z
dc.date.accessioned2026-06-27T15:17:40Z
dc.descriptionWe study the dynamics of the supply response of smallholder grain producers to changes in crop prices and costs of production in Ethiopia. We develop an intertemporal acreage demand allocation model of a representative household under a rational expectations hypothesis. An estimable acreage demand equation is derived and estimated for teff, an important staple grain in Ethiopia. We apply systems and linear dynamic panel data models to a data set covering a time period marked with remarkable agricultural and macroeconomic growth and smallholder-focused economic policies. The results indicate that teff acreage demand increases faster than permanent increases in real teff prices, and it rises by a third of temporary price increases. Moreover, teff acreage demand declines with increases in the opportunity cost of producing teff.
dc.formatapplication/pdf
dc.identifierhttps://hdl.handle.net/10568/151371
dc.identifier.urihttp://hdl.handle.net/123456789/100232
dc.languageen
dc.publisherInternational Food Policy Research Institute
dc.publisherEthiopian Development Research Institute
dc.rightsOpen Access
dc.sourceBachewe, Fantu Nisrane and Taffesse, Alemayehu Seyoum. 2015. Dynamic supply response of farm households in Ethiopia. ESSP II Working Paper 78. Washington, DC and Addis Ababa, Ethiopia: International Food Policy Research Institute and Ethiopian Development Research Institute (EDRI). https://hdl.handle.net/10568/151371
dc.subjecteconomic theory
dc.subjectdata analysis
dc.subjectteff
dc.subjectsupply balance
dc.subjectdemand
dc.subjectsmallholders
dc.subjectincentives
dc.subjectprices
dc.titleDynamic supply response of farm households in Ethiopia
dc.typeWorking Paper

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