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| Vakis, Renos; Sadoulet, Elisabeth; de Janvry, Alain. |
| Farmers incur proportional and fixed transactions costs in selling their crops on markets. Using data for Peruvian potato farmers, we propose a method to measure these transactions costs. When opportunities exist to sell a crop on alternative markets, the observed choice of market can be used to infer a monetary measure of transactions costs in market participation. The market choice model is first estimated at the reduced form level with a conditional logit, as a function of variables that explain transactions costs. We then use these market choice equations to control for selection in predicting the idiosyncratic prices that would be received on all markets and the idiosyncratic proportional transactions costs that would be incurred to reach all markets.... |
| Tipo: Working or Discussion Paper |
Palavras-chave: Transactions costs; Market choice; Information; Marketing; D23; D83; O12. |
| Ano: 2003 |
URL: http://purl.umn.edu/25110 |
