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

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  • Nkonya, Ephraim M.
  • Parcell, Joe L.

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.
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  • Nkonya, Ephraim M. & Parcell, Joe L., 1999. "Redistribution of social benefits from advances in extension and research in the Tanzanian maize industry," Agricultural Economics, Blackwell, vol. 21(3), pages 231-239, December.
    • Handle: RePEc:eee:agecon:v:21:y:1999:i:3:p:231-239
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