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Structural Model of Agricultural Markets in Developing Countries

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  • J. S. Butler
  • Christine Moser

Abstract

Switching regime models, including the Parity Bounds Model, are commonly used for assessing market integration, although they are not well suited to multiple market contexts. We develop an alternative structural model of markets that incorporates explanatory variables and generates the probability that a single market is integrated, therefore making it possible to identify specific factors or regions of a country associated with low integration. Our application to intraprovincial rice markets in Madagascar predicts that 56% of markets are integrated. High crime areas are less likely to be integrated, while the center of the country has a higher level of integration. Copyright 2010, Oxford University Press.

Suggested Citation

  • J. S. Butler & Christine Moser, 2010. "Structural Model of Agricultural Markets in Developing Countries," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 92(5), pages 1364-1378.
    • Handle: RePEc:oup:ajagec:v:92:y:2010:i:5:p:1364-1378
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    File URL: http://hdl.handle.net/10.1093/ajae/aaq073
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    Citations

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    Cited by:

    1. Christophe Muller, 2022. "Poverty Measurement under Income and Price Dispersions," Working Papers hal-03612841, HAL.
    2. Ralandison, Tsilavo & Arimoto, Yutaka & Kono, Hisaki & Sakurai, Takeshi & Takahashi, Kazushi, 2018. "Rice flows across regions in Madagascar," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 13(1), March.
    3. Arimoto, Yutaka & Kono, Hisaki & Ralandison, Tsilavo & Sakurai, Takeshi & Takahashi, Kazushi, 2015. "Understanding traders' regional arbitage : the case of rice traders in Antananarivo, Madagascar," IDE Discussion Papers 505, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    4. Sakurai, Takeshi & Ralandison, Tsilavo & Takahashi, Kazushi & Arimoto, Yutaka & Kono, Hisaki, 2015. "Is there any premium for unobservable quality? : a hedonic price analysis of the Malagasy rice market," IDE Discussion Papers 504, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    5. Stifel, David & Minten, Bart & Koro, Bethlehem, 2012. "Economic Benefits and Returns to Rural Feeder Roads: Evidence from a Quasi-Experimental Setting in Ethiopia:," ESSP working papers 40, International Food Policy Research Institute (IFPRI).
    6. Christophe Muller, 2023. "Poverty measurement under income and price dispersion," Chapters, in: Jacques Silber (ed.), Research Handbook on Measuring Poverty and Deprivation, chapter 14, pages 151-160, Edward Elgar Publishing.
    7. Christophe Muller, 2022. "Poverty Measurement under Income and Price Dispersions," AMSE Working Papers 2204, Aix-Marseille School of Economics, France.
    8. Isaac Abunyuwah & Henry De-Graft Acquah, 2013. "Modelling non-linear Spatial Market Integration and Equilibrium Processes in Hidden Markov Framework," Journal of Economics and Behavioral Studies, AMH International, vol. 5(8), pages 535-545.
    9. Fan, Xiaoli & Gómez, Miguel I. & Atallah, Shady S. & Hernandez, Juan, 2014. "Examining Seasonality of Spatial Efficiency in the U.S. Fresh Broccoli Market," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170235, Agricultural and Applied Economics Association.

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