In this paper, published in the American Economic Review, Bustos, Caprettini and Ponticelli (2016) study the effects of the adoption of new agricultural technologies on structural transformation.
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.
In all modern bureaucracies, politicians retain some discretion in public employment decisions, which may lead to frictions in the selection process if political connections substitute for individual competence.
