Upcoming Seminar

IFPRI’s Applied Microeconomics & Development Seminar Series provides a forum for researchers to present top-quality applied microeconomics and development work. Seminars are held on the first and third Thursdays of each month at IFPRI’s Washington DC office. Please contact Julie Lang (j.lang@cgiar.org) if you have any questions.

May 31
Speaker: Lorenzo Casaburi, Assistant Professor at University of Zurich
12:00-1:15 pm
Conference Room 9A

Competition and Interlinkages in Agricultural Markets
This paper develops an experimental approach to measure competition among intermediaries in agricultural markets, based on the random allocation of subsidies to traders. We show that, in individual-level randomizations with competitive spillovers, treatment-control differences in prices can inform an intuitive test of the degree of differentiation among firms. In the context of the Sierra Leone cocoa industry, traders compete by providing farmers credit, as well as through prices. Even when accounting for both the price and the credit margin, differentiation among traders is low. By combining the experimental results with quasi-experimental estimates of the pass-through rate, we then estimate market size — the effective number of traders competing for farmers’ supply –and we find it to be substantially larger than the village. These results are consistent with a view of competitive agricultural markets.

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