Policy reforms in developing countries need new approach for agricultural growth.
The article discusses how estimating agricultural supply response in developing countries can be tricky. Time series estimation often underestimates the impact of policy changes. This is because past data may not accurately predict future outcomes, especially when major policy reforms are involved. The authors suggest that investing in public goods alongside price policies can be more effective than focusing solely on price changes. They argue that choosing the best policy should consider multiple criteria, not just the one with the biggest impact on output.