The open access version of this article is available here at the American Economic Review.
Abstract
African agricultural markets are characterized by low farmer revenues and high consumer food prices. Many have worried that this wedge is partially driven by imperfect competition among intermediaries. Bergquist and Dinerstein (2020) provide experimental evidence from Kenya on intermediary market structure. Randomized cost shocks and demand subsidies are used to identify a structural model of market competition. Estimates reveal that traders act consistently with joint profit maximization and earn median markups of 39 percent. Exogenously induced firm entry has negligible effects on prices, and low take-up of subsidized entry offers implies large fixed costs. The authors estimate that traders capture 82 percent of total surplus.
In response to the Covid-19 crisis, 186 countries implemented direct cash transfers to households, and 181 introduced in-kind programs that lowered the cost of utilities such as electricity, water, transport, and mobile money.
Organizational and managerial structure plays an important role in the productivity difference among firms. However, studies that assessed the quality of firm management and its link with their performance are still scanty.
Research suggests that partisanship and social media usage correlate with belief in COVID-19 misinformation, and that misinformation shapes citizens’ willingness to get vaccinated.
Landmines affect the lives of millions in many conflict-ridden communities long after the cessation of hostilities. However, there is little research on the role of demining.
A lack of trust in product quality can distort markets, reducing demand and investment. Can a low-touch information campaign improve confidence in fertiliser quality in Tanzania, raising demand for a critical agricultural input?