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Spatial heterogeneity in price (dis)incentives: evidence from the Ugandan maize value chain
journal contribution
posted on 2023-06-09, 17:17 authored by Marco Letta, Emiliano Magrini, Pierluigi MontalbanoImpact assessments of policy interventions on agricultural commodity prices are carried out by international organizations using nationwide measures which overlook the effects of spatial heterogeneity in incomplete markets. We introduce a multi-step methodology to build spatially-disaggregated nominal rates of protection in a data-scarce environment and test it along the maize value chain in Uganda. Results confirm that the spatial dispersion of farmers plays a key role in determining heterogeneity in nominal rates of protection. This finding has far-reaching policy implications: i) the assumption of a nationally representative market pathway is unrealistic; ii) pan-national interventions may exacerbate, rather than reduce, price distortions.
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Publication status
- Published
File Version
- Published version
Journal
Economics BulletinISSN
1545-2921Publisher
Economics BulletinPublisher URL
Issue
1Volume
39Page range
495-501Department affiliated with
- Economics Publications
Full text available
- Yes
Peer reviewed?
- Yes
Legacy Posted Date
2019-03-19First Open Access (FOA) Date
2019-03-19First Compliant Deposit (FCD) Date
2019-03-18Usage metrics
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