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Effects on agricultural supply of producer price level and stability with and without goods scarcity: The case of coffee supply in Madagascar

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  • Patrick Guillaumont
  • Catherine Bonjean

Abstract

This article examines several hypotheses related to influences on the supply of agricultural export products in developing countries. First, it considers the hypothesis that a scarcity of consumer incentive goods so reduces the elasticity of supply to real prices that it becomes negative. Next, it analyses various effects of real price instability on supply, effects that vary according to the availability of consumer goods. Finally, it considers the indirect influence of stabilization schemes on supply, through their effect on the average level of producer prices. The various hypotheses are then tested for the case of coffee supply in Madagascar during the period 1965‐84.

Suggested Citation

  • Patrick Guillaumont & Catherine Bonjean, 1991. "Effects on agricultural supply of producer price level and stability with and without goods scarcity: The case of coffee supply in Madagascar," Journal of International Development, John Wiley & Sons, Ltd., vol. 3(2), pages 115-133.
    • Handle: RePEc:wly:jintdv:v:3:y:1991:i:2:p:115-133
    DOI: 10.1002/jid.4010030203
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    Cited by:

    1. Patrick GUILLAUMONT, 1999. "On The Economic Vulnerability Of Low Income Countries révisé, cf 2000.16," Working Papers 199916, CERDI.
    2. Galarraga, Ibon & Markandya, Anil, 2006. "A proposal to correct external effects in the coffee market: a tax on regular coffee and tea to subsidise the fair trade coffee," Economia Agraria y Recursos Naturales, Spanish Association of Agricultural Economists, vol. 6(12), pages 1-23.
    3. Patrick GUILLAUMONT, 2000. "On the Economic Vulnerability of Low Income Countries," Working Papers 200016, CERDI.
    4. Guillaumont, Patrick, 1991. "Politique d'ajustement et developpement agricole," 1991 Conference, August 22-29, 1991, Tokyo, Japan 315466, International Association of Agricultural Economists.

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