Government policy and dynamic supply response: a study of the compulsory grain delivery system

Alemayehu Taffesse

MPRA Paper from University Library of Munich, Germany

Abstract: The impact of government policy on the dynamics of agricultural supply in Ethiopia during the 1980s is explored. Specifically, an intertemporal acreage allocation model that allows for the impact of compulsory grain delivery is developed. Subsequently, an estimable dynamic acreage demand equation is derived, and estimated for a crop using region-level data. Generalized Method of Moments (GMM) estimators for dynamic panel data models are used. The elasticity estimates thus obtained suggest that the demand for crop acreage (and hence the supply of crop output) responded negatively to the level of forced grain procurement, and positively to output price.

Keywords: compulsory grain deliver system; agricultural supply response; dynamic panel date models (search for similar items in EconPapers)
JEL-codes: D21 D45 O12 O13 (search for similar items in EconPapers)
Date: 1997-06
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Citations: View citations in EconPapers (2)

Published in Ethiopian Journal of Economics 2.9(2005): pp. 1-42

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