The methodologies of the studies - Institutional Constraints to Small Farmer Development in Southern Africa - page 317

10. nominal protection coefficient on tradable inputs (NPCI);
11. effective protection coefficient (EPC);
12. profitability coefficient (PC);
13. subsidy ratio to producers (SRP).

The procedures for computing these measures are incorporated in the PAM framework and
can be summarized in the following Equations:

Private revenue (A) = P D = Q i P i (A.26)

where:
D = value of variable at private (market) price;
P D = revenue at market price;
Q i = output quantity;
P i = output price.

Private revenue (E) = P S = Q i P i

(A.27)

where:
S = value of variable at social (shadow) price;
P S = revenue at social price;
Q i = output quantity;
P i = output price.

Private tradable inputs (B) = ∑ i p i D q i D (A.28)

where:
D = value of variable at private (market) price;
p i D = price of tradable input i;
q i D = quantity of tradable input i per unit of output (Q).

Social tradable input (F) = ∑ i p i S q i S

(A.29)

where:
S = value of variable at social (shadow) price;
p i S = price of tradable input i;
q i S = quantity of i per unit of output (Q).

Private domestic factors(C) = ∑w j D l j D (A.30)