Estimation of the Supply Elasticity of Agricultural Products in Cote d'Ivoire

Dr. Mbaye AW, Senegal

Abstract: This study examines the origins and likely causes of an asymmetric response of agricultural supply following a shock to prices paid to producers between 1966 and 2011 in C?te d?Ivoire. The results obtained from applying a threshold error-correction model to annual series of prices and cultivated areas show that the asymmetric response mechanism of agricultural supply stems from the existence of costs and intermediaries that limit the supply of agricultural products. Price intervention mechanisms affecting prices paid to producers have led to a weakening of the agricultural supply response following changes in producer prices, as well as to the emergence of asymmetry in the speed of adjustment of agricultural supply- particularly when the price paid to producers is persistently maintained below its equilibrium value. The speed of adjustment appears to depend on the nature of the shock causing the disequilibrium, as cultivated areas tend to converge only weakly, if at all, toward their equilibrium values.

Keywords: agricultural supply response, price elasticity, C?te d'Ivoire, threshold error correction model, producer prices

How to Cite?: Dr. Mbaye AW, Senegal, "Estimation of the Supply Elasticity of Agricultural Products in Cote d'Ivoire", Volume 15 Issue 1, January 2026, International Journal of Science and Research (IJSR), Pages: 1377-1384, https://www.ijsr.net/getabstract.php?paperid=SR26108052951, DOI: https://dx.doi.org/10.21275/SR26108052951