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Sales location among semi-subsistence cassava farmers in Benin: a heteroskedastic double selection model
Article first published online: 30 JUL 2012
© 2012 International Association of Agricultural Economists
Volume 43, Issue 6, pages 655–670, November 2012
How to Cite
Takeshima, H. and Winter-Nelson, A. (2012), Sales location among semi-subsistence cassava farmers in Benin: a heteroskedastic double selection model. Agricultural Economics, 43: 655–670. doi: 10.1111/j.1574-0862.2012.00610.x
- Issue published online: 5 NOV 2012
- Article first published online: 30 JUL 2012
- Received 9 December 2009; received in revised form 4 January 2012; accepted 11 February 2012
- Transaction costs;
- Sales location;
- Agricultural supply response;
- Cassava, Benin
In much of rural Africa, high transaction costs limit farmers’ market participation and thus their potential for income growth. Transaction costs can affect not only whether a farmer sells product but also whether sales occur at the farm gate or at a market. If production behavior is related to a chosen sales location, then analysis of interventions can be improved by explicit consideration of the decision of where to sell. This article develops a double-selection model that explains consumption and production decisions by semi-subsistence farmers who first decide whether to be a seller and then whether to sell at the farm gate or at an off-farm location before deciding on production and consumption. The study tests the validity of this dual-criteria model against a single-criterion model in which a grower first decides to be a seller and then decides production, consumption, and sales location simultaneously. The results suggest that the dual-criteria model provides more information than the single-criterion model using a sample of cassava producer in Benin.