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Measuring Transactions Costs from Observed Behavior: Market Choice in Peru AgEcon
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
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Testing for Separability in Household Models with Heterogeneous Behavior: A Mixture Model Approach AgEcon
Vakis, Renos; Sadoulet, Elisabeth; de Janvry, Alain; Cafiero, Carlo.
Knowing whether a household behaves according to separability or non-separability is needed for the correct modeling of production decisions. We propose a superior test to those found in the literature on separability by using a mixture distribution approach to estimate the probability that a farm household behaves according to non-separability, and test that the determinants of consumption affect production decisions for households categorized as non-separable. With non-separability attributed to labor market constraints, the switcher equation shows that Peruvian farm households that are indigenous and young, with low levels of education, and lack of local employment opportunities are more likely to be constrained on the labor market.
Tipo: Working or Discussion Paper Palavras-chave: Labor; Separability; Mixture distributions; Peru; Consumer/Household Economics; Labor and Human Capital; J43; C16; Q12.
Ano: 2004 URL: http://purl.umn.edu/25016
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