Designing Agricultural Input Subsidy Programs: A System Dynamics Informed Optimization Approach for Zambia

Mrunal Shah, Purdue University

Abstract

Input subsidies have been introduced in many of the sub-Saharan countries to increase the agricultural productivity. However, these programs are very expensive and they continue to operate with no end in sight. There have been many studies evaluating of the subsidy programs, but there is a need to develop a formal design model for input subsidies. This Thesis provides a proof of concept design model for a time-bounded input subsidy program. A system dynamic framework was developed based on the in depth literature review of the learnings from the past subsidy programs. Using the relationships in the system dynamic framework, an optimization model was formulated to design the input subsidy program. The outputs based on the data from Zambia suggests that the model is functional and capable of achieving the desired goals of the input subsidy programs.

Degree

M.S.I.E.

Advisors

Goñi, Purdue University.

Subject Area

Industrial engineering

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