IDEAS home Printed from https://ideas.repec.org/p/wbk/wbrwps/92.html
   My bibliography  Save this paper

A model of cocoa replanting and new planting in Bahia, Brazil, 1966-85

Author

Listed:
  • Trivedi, Pravin K.

Abstract

In 1966, 90 percent of the cocoa growing areas in Bahia, Brazil had trees more than 30 years old. By 1985 most of the area had been replanted or supplied with new trees. Throughout most of this period there were high or rising cocoa prices, and zero or negative interest rates. High prices and low interest rates directly encouraged new planting, but their relationship to replanting is more complex. In the short term, higher prices discourage replanting, which involves uprooting and a temporary loss of revenue. But over the long run, higher prices increase expectations of future profits and encourage replanting. Lowering the interest rate beloow its real level provided cocoa growers with a subsidy that encouraged both replanting and new planting.

Suggested Citation

  • Trivedi, Pravin K., 1988. "A model of cocoa replanting and new planting in Bahia, Brazil, 1966-85," Policy Research Working Paper Series 92, The World Bank.
    • Handle: RePEc:wbk:wbrwps:92
    as

    Download full text from publisher

    File URL: http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/1988/09/01/000009265_3960927053841/Rendered/PDF/multi_page.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Marc Nerlove, 1979. "The Dynamics of Supply: Retrospect and Prospect," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 61(5), pages 874-888.
    2. Akiyama, T. & Trivedi, P. K., 1987. "Vintage production approach to perennial crop supply : An application to tea in major producing countries," Journal of Econometrics, Elsevier, vol. 36(1-2), pages 133-161.
    3. Mundlak, Yair, 1985. "The Aggregate Agricultural Supply," Working Papers 232646, Hebrew University of Jerusalem, Center for Agricultural Economic Research.
    4. Dufour, J.M., 1981. "Recursive Stability Analysis of Linear Regression Relationships," Cahiers de recherche 8129, Universite de Montreal, Departement de sciences economiques.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Laajimi, Abderraouf & Guesmi, Anis & Dhehibi, Boubaker, 2007. "Analyse de la Reponse de l'offre des Pommes en Tunisie : Une Approche Econometrique," 103rd Seminar, April 23-25, 2007, Barcelona, Spain 9392, European Association of Agricultural Economists.
    2. Jonathon Siegle & Gregory Astill & Zoë Plakias & Daniel Tregeagle, 2024. "Estimating perennial crop supply response: A methodology literature review," Agricultural Economics, International Association of Agricultural Economists, vol. 55(2), pages 159-180, March.
    3. Kim, Jae H. & Fraser, Iain & Hyndman, Rob J., 2011. "Improved interval estimation of long run response from a dynamic linear model: A highest density region approach," Computational Statistics & Data Analysis, Elsevier, vol. 55(8), pages 2477-2489, August.
    4. Fleskens, Luuk & Graaff, Jan de, 2010. "Conserving natural resources in olive orchards on sloping land: Alternative goal programming approaches towards effective design of cross-compliance and agri-environmental measures," Agricultural Systems, Elsevier, vol. 103(8), pages 521-534, October.
    5. Christopher L. Gilbert, 2024. "Cocoa: Origin Differentials and the Living Income Differential," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 36(4), pages 777-802, August.
    6. Akiyama, Takamasa & Varangis, Panayotis, 1989. "Impact of the International Coffee Agreement's export quota system on the World's coffee market," Policy Research Working Paper Series 148, The World Bank.
    7. Deepananda Herath & Alfons Weersink, 2007. "Peasants and plantations in the Sri Lankan tea sector: causes of the change in their relative viability ," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 51(1), pages 73-89, March.
    8. Vavra, Pavel & Colman, David, 2003. "The analysis of UK crop allocation at the farm level: implications for supply response analysis," Agricultural Systems, Elsevier, vol. 76(2), pages 697-713, May.
    9. Wall, Charles A. & Fisher, Brian S., 1988. "Supply Response and the Theory of Production and Profit Functions," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 56(03), pages 1-22, December.
    10. Imai, Katsushi S. & Gaiha, Raghav & Thapa, Ganesh, 2011. "Supply response to changes in agricultural commodity prices in Asian countries," Journal of Asian Economics, Elsevier, vol. 22(1), pages 61-75, February.
    11. Roosen, Jutta & Hennessy, David A., 2001. "An Equilibrium Analysis Of Antibiotics Use And Replanting Decisions In Apple Production," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 26(2), pages 1-15, December.
    12. Larson, Donald F., 1990. "The Indonesian vegetable oils sector : modeling the impact of policy changes," Policy Research Working Paper Series 382, The World Bank.
    13. Sunil Kanwar, 2004. "Price Incentives, Nonprice factors, and Crop Supply Response:The Indian Cash Crops," Working papers 132, Centre for Development Economics, Delhi School of Economics.
    14. Kazianga, Harounan & Masters, William A., 2002. "Property Rights, Production Technology And Deforestation: Cocoa In West Africa," 2002 Annual meeting, July 28-31, Long Beach, CA 19871, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    15. Buhr, Brian L., 1993. "A Quarterly Econometric Simulation Model Of The U.S. Livestock And Meat Sector," Staff Papers 13465, University of Minnesota, Department of Applied Economics.
    16. Larson, David F. & Butzer, Rita & Mundlak, Yair & Crego, Al, 2000. "A Cross-Country Database for Sector Investment and Capital," The World Bank Economic Review, World Bank, vol. 14(2), pages 371-391, May.
    17. Hussein, Ahmed, 2017. "U.S. Broiler, Turkey And Total Poultry Supply Response To Corn Feed Prices," 2017 Annual Meeting, February 4-7, 2017, Mobile, Alabama 252710, Southern Agricultural Economics Association.
    18. Shikur, Zewdie Habte, 2021. "Potato and Tomato Supply and Yield Responses to Policy in Ethiopia," African Journal of Economic Review, African Journal of Economic Review, vol. 9(4), September.
    19. Liu, Fengwei & You, Liangzhi & Yu, Bingxin, 2010. "Dynamic agricultural supply response under economic transformation," IFPRI discussion papers 987, International Food Policy Research Institute (IFPRI).
    20. Nyangweso, P.M. & Odhiambo, M.O. & Odunga, P., 2007. "PR - Drivers Of Agricultural Exports In Eastern Africa: Evidence From Kenya, Uganda, And Tanzania," 16th Congress, Cork, Ireland, July 15-20, 2007 345403, International Farm Management Association.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:92. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Roula I. Yazigi (email available below). General contact details of provider: https://edirc.repec.org/data/dvewbus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.