Spatial heterogeneity in price (dis)incentives: evidence from the Ugandan maize value chain

Letta, Marco, Magrini, Emiliano and Montalbano, Pierluigi (2019) Spatial heterogeneity in price (dis)incentives: evidence from the Ugandan maize value chain. Economics Bulletin, 39 (1). p.A49. ISSN 1545-2921

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Impact assessments of policy interventions on agricultural commodity prices are carried out by international organizations using nationwide measures which overlook the effects of spatial heterogeneity in incomplete markets. We introduce a multi-step methodology to build spatially-disaggregated nominal rates of protection in a data-scarce environment and test it along the maize value chain in Uganda. Results confirm that the spatial dispersion of farmers plays a key role in determining heterogeneity in nominal rates of protection. This finding has far-reaching policy implications: i) the assumption of a nationally representative market pathway is unrealistic; ii) pan-national interventions may exacerbate, rather than reduce, price distortions.

Item Type: Article
Schools and Departments: School of Business, Management and Economics > Economics
Subjects: H Social Sciences > HD Industries. Land use. Labour > HD1401 Agricultural economics
Depositing User: Prof. Pierluigi Montalbano
Date Deposited: 19 Mar 2019 17:05
Last Modified: 19 Mar 2019 17:06

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