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Policy analysis matrices: beyond simple sensitivity analysis

Author

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  • Jamie Morrison

    (Agricultural Economics and Business Management, Imperial College at Wye, Ashford, Kent, UK)

  • Kelvin Balcombe

    (Agricultural Economics and Business Management, Imperial College at Wye, Ashford, Kent, UK)

Abstract

As an analytical methodology, the Policy Analysis Matrix (PAM) can be used to provide indicators of the incentives faced by producers in a given policy and institutional environment. However, the methodology suffers from the limitation that the analyst is unable to attach any level of confidence to the results, other than that generated through sensitivity analysis. In this paper the technique of bootstrapping is introduced as a general method for assessing the degree of uncertainty surrounding indicators derived from PAMs. The example of wheat production in Slovakia is used to demonstrate the usefulness of the additional information generated by this approach. Copyright © 2002 John Wiley & Sons, Ltd.

Suggested Citation

  • Jamie Morrison & Kelvin Balcombe, 2002. "Policy analysis matrices: beyond simple sensitivity analysis," Journal of International Development, John Wiley & Sons, Ltd., vol. 14(4), pages 459-471.
    • Handle: RePEc:wly:jintdv:v:14:y:2002:i:4:p:459-471
    DOI: 10.1002/jid.887
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      • Liebenberg, Frikkie & Beintema, Nienke M. & Kirsten, Johann F., 2004. "South Africa," ASTI country briefs 14, International Food Policy Research Institute (IFPRI).
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    4. Kydd, Jonathan & Pearce, Richard & Stockbridge, Michael, 1997. "The economic analysis of commodity systems: Extending the Policy Analysis Matrix to account for environmental effects and transactions costs," Agricultural Systems, Elsevier, vol. 55(2), pages 323-345, October.
    5. Yao, Shujie, 1997. "Rice production in Thailand seen through a policy analysis matrix," Food Policy, Elsevier, vol. 22(6), pages 547-560, December.
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    Cited by:

    1. Gonchigsumlaa, Ganzorig & von Cramon-Taubadel, Stephan & Soninkhishig, Nergui & Buerkert, Andreas, 2019. "Competitiveness of sea buckthorn farming in Mongolia: A policy analysis matrix," MPRA Paper 109876, University Library of Munich, Germany, revised 20 Apr 2020.

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