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Redistribution of social benefits from advances in extension and research in the Tanzanian maize industry

Ephraim Nkonya () and Joe L. Parcell

Agricultural Economics, 1999, vol. 21, issue 3, 231-239

Abstract: This study determined consumer and producer welfare gains from advances in extension and research in the maize industry of Tanzania to determine how a national taxing schedule should be determined. It was found that, for an off‐farm marketable surplus of 40%, consumers and producers gain equally, while for an off‐farm marketable surplus of 60%, consumers realize 75% of the welfare benefits. This suggests that consumers and producers should share equally in a revenue generating tax for funding maize research and extension programs. However, for large producers with a marketable surplus of 60% or more, their tax should decrease proportionally to the amount sold. Alternatively, if taxed equally, large‐scale producers should receive some form of compensation through direct government payments.

Date: 1999
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https://doi.org/10.1111/j.1574-0862.1999.tb00597.x

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