The impact of prices and macroeconomic policies on agricultural supply: a synthesis of available results

This paper reviews the literature dealing with the link of agricultural prices and macroeconomic policies to agiicultural supply with particular emphasis on Sub-Saharan Africa. Although the study echoes the stylized facts on price elasticities underlined in previous literature reviews, the paper points out that our understanding of the quantitative dimensions of agricultural supply response is weak given the importance of this assumed response for growth, poverty alleviation, and the environment Indeed, issues such as simultaneity of variables, data pooling, omission of variables, and asymmetry in supply responses to price changes have not been adequately addressed in many instances. © 1997 Elsevier Science B.V. All rights reserved.