A test of whether millet acreage in Niger is determined by official or private market prices

Niger has two separate marketing channels for grain: one is the official system operated by the government; the other is a parallel channel of private traders. Researchers or policy-makers wanting to study effects of price policies on producers are faced with two sets of prices. This paper seeks to answer the question, which prices matter? Non-nested hypothesis tests are conducted for millet-acreage response equations. The results show that prices from the larger private market are the prices that matter