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Farm input subsidy program in Malawi: the rationale behind the policy

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Figure

Figure 1: Tradeoff between efficiency and non-efficiency objectives. Source: recreation from Monke and Pearson (1989)
Figure 2: Impact of ISP on input use level and quantity imported. Q1 and Q2 represent the quantity of fertilizer
Figure 3: Impact of ISP on social welfare – open market. Q1 and Q2 represent the quantity of maize supplied and D1 represents the quantity demanded
Figure 4: Impact of ISP on social welfare –the autarky price (equilibrium price) before the ISP, P* is the new consumer price after the policy, and P+s in the  closed market
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