@article{Winter-Nelson:173882,
      recid = {173882},
      author = {Winter-Nelson, Alex},
      title = {Expectations, supply response, and marketing boards: An  example from Kenya},
      journal = {Agricultural Economics: The Journal of the International  Association of Agricultural Economists},
      address = {1996-04},
      number = {968-2016-75176},
      pages = {12},
      year = {1996},
      abstract = {Whether farmers form price expectations adaptively or in a  forward-looking manner has implications for supply response  analysis and
for the implementation of agricultural policy  reform. This paper examines the formation of price  expectations by Kenyan export-crop
farmers who market their  produce through a monopsonistic parastatal. The analysis  allows for relaxation of the small-country  assumption
within a rational expectations framework.  Production behavior is consistent with expectations of  future prices based on indicators of
aggregate supply and  of the marketing board's purchasing capacity. The finding  that price forecasts may be formed using information  other
than previous price levels implies that marketing  reforms that raise prices may not raise the relevant price  expectations. To elicit a positive
supply response, market  reforms should be sensitive to farmers' interpretation of  institutional signals as well as previous prices.},
      url = {http://ageconsearch.umn.edu/record/173882},
      doi = {https://doi.org/10.22004/ag.econ.173882},
}