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Estimation of dynamic maize supply response in Zambia
Author(s) -
Foster Kenneth A.,
Mwanaumo Anthony
Publication year - 1995
Publication title -
agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.29
H-Index - 82
eISSN - 1574-0862
pISSN - 0169-5150
DOI - 10.1111/j.1574-0862.1995.tb00354.x
Subject(s) - economics , distributed lag , agricultural economics , staple food , subsistence agriculture , consumption (sociology) , production (economics) , short run , order (exchange) , econometrics , agriculture , microeconomics , geography , social science , archaeology , finance , sociology
Increased attention on government pricing policies among African nations leads directly to a need for information about producer responses to price adjustments. This is especially true in the case of Zambian maize production. Maize is the most important crop grown in Zambia. It accounts for more than 80% of the value of marketed food crops, is heavily relied on for subsistence consumption, and is a staple food in the diet of all Zambian citizens. This paper analyzes the aggregate price response of maize supply in Zambia using a dynamic regression analysis. As a result, short, intermediate and long‐run multipliers/elasticities are measured which can be used to analyze the effect of future price policy changes. It was found that a second‐order rational distributed lag model best fits the available data. Estimates of short‐run elasticities of supply for maize and fertilizer prices are 0.54 and –0.48, respectively. The corresponding estimated long‐run elasticities are 1.57 and – 1.44.