We analyze the effects of high standards food chains on household welfare taking into account general equilibrium effects and market imperfections. To measure structural production changes and welfare effects on rural and urban households, our model has two types of agents, five kinds of...

This paper develops a formal theory of the endogenous process of the introduction of high quality products in developing countries. Initial differences in income and capital and transaction costs are shown to affect the emergence of and the size of the high quality economy. Initial differences...

Consumers have increasing demands for product standards. This has important implications for development. While there has been increasing attention to empirical work in this area, it is often grounded in a poor conceptual base. To overcome this shortcoming, this paper develops a formal theory of...