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The adding up problem: a targeting approach

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  • Kala Krishna

Abstract

This paper looks at the problem of making multiple lending decisions which affect the supply of the product when the consequences of these lending decisions are interrelated via the effect on the world price of the product. This is termed the 'adding up problem'. It is argued that thinking of this problem from the point of view of the targeting literature helps to clarify the nature of optimal polices.

Suggested Citation

  • Kala Krishna, 1998. "The adding up problem: a targeting approach," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 7(2), pages 151-173.
    • Handle: RePEc:taf:jitecd:v:7:y:1998:i:2:p:151-173
    DOI: 10.1080/09638199800000009
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    References listed on IDEAS

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    1. Timothy Besley, 1997. "Monopsony and Time–Consistency: Sustainable Pricing Policies for Perennial Crops," Review of Development Economics, Wiley Blackwell, vol. 1(1), pages 57-70, February.
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    3. Takamasa Akiyama, 1992. "Is there a case for an optimal export tax on perennial crops?," Policy Research Working Paper Series 854, The World Bank.
    4. Krishna, Kala & Thursby, Marie, 1991. "Optimal policies with strategic distortions," Journal of International Economics, Elsevier, vol. 31(3-4), pages 291-308, November.
    5. Coleman, Jonathan R. & Thigpen, M. Elton, 1993. "Should sub-Saharan Africa expand cotton exports?," Policy Research Working Paper Series 1139, The World Bank.
    6. Akiyama, Takamasa & Larson, Donald F. & DEC, 1994. "The adding-up problem : strategies for primary commodity exports in sub-Saharan Africa," Policy Research Working Paper Series 1245, The World Bank.
    7. Krishna, Kala & Thursby, Marie, 1992. "Optimal policies and marketing board objectives," Journal of Development Economics, Elsevier, vol. 38(1), pages 1-15, January.
    8. Will Martin, 1993. "The Fallacy of Composition and Developing Country Exports of Manufactures," The World Economy, Wiley Blackwell, vol. 16(2), pages 159-172, March.
    9. Harry G. Johnson, 1950. "Optimum Welfare and Maximum Revenue Tariffs," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 19(1), pages 28-35.
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    Cited by:

    1. Christopher L. Gilbert & Panos Varangis, 2003. "Globalization and International Commodity Trade with Specific Reference to the West African Cocoa Producers," NBER Working Papers 9668, National Bureau of Economic Research, Inc.
    2. Christopher Gilbert & Panos Varangis, 2004. "Globalization and International Commodity Trade with Specific Reference to the West African Cocoa Producers," NBER Chapters, in: Challenges to Globalization: Analyzing the Economics, pages 131-163, National Bureau of Economic Research, Inc.

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    More about this item

    Keywords

    Adding up; targeting; optimal policies; export tax; investment;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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