Effects of agricultural policies in Kenya: An analytical framework and application in the maize market
Reynolds, Stanley S.
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PublisherThe University of Arizona.
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AbstractThis dissertation reviews the process of maize market liberalization in Kenya, investigates a relationship between market integration and price stability, and presents a theoretical foundation for numerical simulations to evaluate effects of agricultural policies. The computer simulations are used to analyze the market under uncertainty. The model examines welfare effects and response to the policies as well as changes in means and coefficients of variation of maize prices and expected income of farmers. The model solves simultaneously indirect utility maximization of individual farmers and a spatial price equilibrium model to give a rational expectations equilibrium land allocation. It takes account of inseparability of consumption and production, stochastic prices and returns, and effects of size and location of farmers. Maize price is endogenously determined as farmers choose a crop mix between maize and a cash crop. It offers a framework in which various agricultural policies, characteristics of farmers, and conditions of markets can be analyzed.
Degree ProgramGraduate College