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Addressing the “Wicked Problem” of Input Subsidy Programs in Africa
Author(s) -
RickerGilbert Jacob,
Jayne Thomas,
Shively Gerald
Publication year - 2013
Publication title -
applied economic perspectives and policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.4
H-Index - 49
eISSN - 2040-5804
pISSN - 2040-5790
DOI - 10.1093/aepp/ppt001
Subject(s) - subsidy , production (economics) , public economics , economics , business , natural resource economics , microeconomics , market economy
This article reviews and critically assesses evidence on input subsidy programs implemented in selected countries over the past decade in Africa. We believe that input subsidies should be considered wicked problems because of the indeterminacy and difficulty surrounding how they are evaluated. Main findings from the current body of literature are that input subsidies provide some measurable but relatively small positive benefit to recipient households' well‐being. In addition, most studies find that subsidized inputs crowd out commercial input purchases, mitigating the extent to which subsidy programs contribute to total fertilizer use and crop production. African governments may wish to carefully consider the benefits and distributional effects of input subsidy programs relative to other uses of scarce public resources.