Can Risk Averse Competitive Input Providers Serve Farmers Efficiently in Developing Countries?

Under price ceilings and quality floors for agricultural inputs in cash crop sectors in developing countries where credit markets are weak, imperfect information on the ability of farmers to pay for their inputs at the end of the cropping season may lead the decentralized production of those inputs by risk averse private input providers to be inefficient. A coordinating agency and/or subsidies for new farmers could help to produce and distribute more agricultural inputs, thereby increasing the profits for input providers while also enabling more farmers to produce the crops that are key to their livelihood.

Bibliographic Details

Main Authors:	Makdissi, Paul, Wodon, Quentin
Language:	English
Published:	2009-04-01
Subjects:	AGRICULTURAL DEVELOPMENT, AGRICULTURAL ECONOMICS, AGRICULTURAL INPUTS, AGRICULTURAL PRODUCTION, AGRICULTURAL PRODUCTION SYSTEMS, AGRICULTURAL SECTORS, AGRICULTURE, COCOA, COFFEE, COMMODITY, CONSUMER SURPLUS, CONTRACT FARMING, CORRUPTION, COTTON, COTTON PRODUCTION, COTTON SECTOR, CREDIT MARKETS, CREDIT RATING, CREDIT RATING SYSTEM, CROP, CROPPING, CROPS, ECONOMIC MODELS, ELASTICITY, ELASTICITY OF DEMAND, ELASTICITY OF SUPPLY, EQUILIBRIUM, EXPECTED UTILITY, EXPECTED VALUE, EXPORT CROPS, FARM, FARMER, FARMERS, FERTILIZERS, FREE ACCESS, GOVERNMENT SUBSIDIES, GROUNDNUT, HUMAN DEVELOPMENT, INEFFICIENCY, INELASTIC DEMAND, INEQUALITY, INTERNATIONAL BANK, LABOR MARKET, LABOR MARKETS, MARGINAL BENEFITS, MARGINAL COST, NASH EQUILIBRIUM, NATURAL RESOURCES, OLIGOPOLY, OPTIMIZATION, PERFECT COMPETITION, POLITICAL ECONOMY, PRICE CEILINGS, PRIVATIZATION, PRODUCE, PRODUCER ORGANIZATIONS, PRODUCTION COST, PRODUCTION FUNCTION, PRODUCTION SYSTEMS, PUBLIC GOOD, REPAYMENT, RISK AVERSE, RISK AVERSION, RURAL CREDIT, SEEDS, SMALL SCALE FARMERS, SOCIAL WELFARE, TRAGEDY OF THE COMMONS, UTILITY FUNCTION, WEALTH,
Online Access:	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090429161327 https://hdl.handle.net/10986/4112
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