A Spatial Analysis of Maize Marketing Policy Reforms in Zambia

In this study we analyze recent and proposed maize marketing reforms in Zambia. To capture the effects of changing transport systems, we use a continuous-space model in place of the traditional point-representation model of Takayama and Judge. This method permits us to use prereform data on supply, demand, and transport costs to infer both intra- and interregional effects of liberalization and shows that the welfare gains from liberalization are larger than commonly thought. These results provide policy makers with estimates of the magnitude of change associated with alternative reform programs, beyond what would be available from a conventional approach. Copyright 1997, Oxford University Press.