RURAL INFRASTRUCTURE, TRANSACTIONS COSTS, AND MARKETED SURPLUS IN KENYA

Mitch Renkow, Daniel G. Hallstrom and Daniel David Karanja

No 20668, 2001 Annual meeting, August 5-8, Chicago, IL from American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association)

Abstract: We develop a conceptual framework for quantifying fixed transactions costs facing semisubsistence households. Using household survey data from a sample of 324 Kenyan maize farmers, we generate estimates of household supply and demand schedules, as well as the price bands that they face. Our econometric results indicate that on average the ad valorem tax equivalent of the fixed transactions costs facing the households in our sample is 28%. Additional analysis indicates that both remoteness and infrastructure quality have significant impacts on the size of the transactions costs facing farm households. To the best of our knowledge, ours are the first empirical estimates of the magnitude of transactions costs.

Keywords: Marketing (search for similar items in EconPapers)
Pages: 27
Date: 2001
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea01:20668

DOI: 10.22004/ag.econ.20668

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