This study derives a demand model for small firm finances using a portfolio allocation theory. The assumption of the manager versus the firm as the primary financial decision-maker of small firm is tested. We employ empirical techniques that allow for indirect utility estimation in a...

This study proposed a seemingly unrelated regression model to investigate the predicting capability of the structure model and test the capital structure theories. The model considered dynamic property of the structure model and characteristics of farm records. FBFM data are used in empirical...

This study proposed a theoretical framework for analyzing farm capital structure choice. The theoretical model recognizes that the costs of debt are endogenously determined which in turn reflect the degree of credit constraint faced by individual borrowers. Based on the proposed model, we...

Consumers are in general less informed than producers about the quality of agricultural goods. To reduce the information gap, consumers can rely on standards (labels, certifications, geographic indications) that insure quality and origin of the goods. However, these standards do not always fully...

In this paper, we develop a model of regulation for a set of heterogenous farmers whose production yields to environmental externalities. The goal of the regulator is first to offer some income support depending on collective preferences towards income redistribution and second to internalize...

Using a unique dataset of maize samples and consumer interviews form Eastern Kenya, we find that the presence of the fungal contaminant aflatoxin is negatively associated with the use of maize flour for food. While food remains the most common use of maize regardless of the presence of the...

Many important food quality and safety attributes are unobservable at the point of sale, particularly in informal markets with weak reputation effects. Through a framed field experiment conducted in western Kenya, we show that farmers place a large premium on maize they have grown themselves,...

This paper investigates the interaction between consumers and producers in designing incentive mechanism for climate protection. Firms have material interests in building a moral reputation for those consumers who prefer buying from socially responsible firms. We examine optimal monetary...

There is a burgeoning literature highlighting asymmetric information among household members. However, little is known about the source of the asymmetry and its effect on efficiency. Using a unique survey of Ghanaian households, we examine the accuracy of spousal cross-reports and the effect of...

Efficient information exchanges between sellers and buyers are essential if prices are to act as a signal for resource allocation in an economy. In the case of seed and planting materials, information on quality traits are often difficult for consumers (farmers) to obtain prior to purchase,...