Arbeitspapier

Shadow vs. market prices in explaining land allocation: subsistence maize cultivation in rural Mexico

Economic models of land allocation may lead to expectations for farmer response that surprisingly do not materialize, if market prices fail to reflect the value of farmers' product. Shadow prices rather than market prices explain resource allocation better for farmers who attach significant non-market values to their own crops. I extend the theoretical model in Arslan and Taylor (2008) to explain why the land allocation of such farmers may not respond to market signals even if transaction costs are not binding. I estimate the proportion of land subsistence maize farmers allocate to traditional versus modern maize varieties using nationally representative rural household data from Mexico the center of diversity of maize. I conclude that shadow prices explain land allocation better than market prices and discuss the importance of non-market values in understanding both farmers' supply response and on-farm conservation of traditional crops with non-market values.

Sprache
Englisch

Erschienen in
Series: Kiel Working Paper ; No. 1469

Klassifikation
Wirtschaft
Microeconomic Analyses of Economic Development
Economic Development: Agriculture; Natural Resources; Energy; Environment; Other Primary Products
Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
Nonrenewable Resources and Conservation: Other
Thema
Land allocation
shadow prices
non-market values
traditional crops
on-farm conservation
Mexico
Landwirtschaftliche Bodennutzung
Allokation
Maisanbau
Subsistenzwirtschaft
Mais
Schattenpreis
Naturschutz
Mexiko

Ereignis
Geistige Schöpfung
(wer)
Arslan, Aslıhan
Ereignis
Veröffentlichung
(wer)
Kiel Institute for the World Economy (IfW)
(wo)
Kiel
(wann)
2008

Handle
Letzte Aktualisierung
10.03.2025, 11:44 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Arslan, Aslıhan
  • Kiel Institute for the World Economy (IfW)

Entstanden

  • 2008

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