Rice Price Stabilization in Madagascar: Price and Welfare Implications of Variable Tariffs

Cornell Food and Nutrition Policy Program Working Paper No. 192

17 Pages Posted: 16 Nov 2005

See all articles by Paul Dorosh

Paul Dorosh

International Food Policy Research Institute (IFPRI)

Bart Minten

Cornell University - Food and Nutrition Policy Program; Catholic University of Leuven (KUL) - Department of Agro-Engineering and Economics

Date Written: November 2005

Abstract

Given the large share of major staples in the budgets of the poor, governments in many developing countries intervene in food markets to limit variation in the prices of staple foods. This paper examines the recent experience of Madagascar in stabilizing prices through international trade and the implications of adjustments in tariff rates. Using a partial equilibrium model, we quantify the overall costs and benefits of a change in import duties for various household groups, and compare this intervention to a policy of targeted food transfers or security stocks.

Keywords: Food Policy, Price Stabilization, Trade, sub-Saharan Africa

JEL Classification: Q11, Q17

Suggested Citation

Dorosh, Paul and Minten, Bart, Rice Price Stabilization in Madagascar: Price and Welfare Implications of Variable Tariffs (November 2005). Cornell Food and Nutrition Policy Program Working Paper No. 192, Available at SSRN: https://ssrn.com/abstract=848445 or http://dx.doi.org/10.2139/ssrn.848445

Paul Dorosh (Contact Author)

International Food Policy Research Institute (IFPRI) ( email )

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Bart Minten

Cornell University - Food and Nutrition Policy Program ( email )

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Catholic University of Leuven (KUL) - Department of Agro-Engineering and Economics ( email )

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Belgium

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