Publication
Oct 2008
This paper examines shadow prices guiding farmers' resource allocations, with a specific focus on Mexico. The authors argue that for subsistence farmers growing traditional crops, shadow prices may bear little relationship with market prices. They econometrically estimate shadow prices of maize using data from a nationally representative survey of rural households in Mexico and conclude that shadow prices are significantly higher than the market price for traditional, but not improved, maize varieties.
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English (PDF, 39 pages, 510 KB) |
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Author | Aslıhan Arslan, J Edward Taylor |
Series | Kiel Institute Working Papers |
Issue | 1457 |
Publisher | Kiel Institute for the World Economy |
Copyright | © 2008 Kiel Institute for the World Economy |