New Economics Papers
on Agricultural Economics
Issue of 2005‒05‒14
eight papers chosen by

  1. Sector agrícola y política de competencia By Ricardo Arguello
  2. ECONOMIA DE LA PRODUCCION DE BIENES AGRICOLAS By Ramón Rosales; Edson Apaza; Jorge Alexander Bonilla Londoño
  3. Efficiency and distribution in contract farming:The case of Indian poultry growers By Bharat Ramaswami; Pratap Singh Birthal; P.K. Joshi
  4. Demand for Environmental Quality: A Spatial Hedonic Approach By David M. Brasington; Diane Hite
  5. Food Protection for Sale By Rigoberto A. Lopez; Xenia Matschke
  6. The precautionary principle in environmental policy and the theory of choice under uncertainty By John Quiggin
  7. Information and the Risk-Averse Firm By Robert G. Chambers; John Quiggin
  8. Output Price Subsidies in a Stochastic World By Robert G. Chambers; John Quiggin

  1. By: Ricardo Arguello
    Abstract: Los procesos de integración económica han puesto en evidencia que la separación tradicionalmente hecha entre las políticas comercial y de competencia no solo es ficticia, sino que mantenerla es simplemente contradictorio con la realidad de la economía internacional. En la medida en que los mercados domésticos se han abierto al comercio internacional, se ha considerado que las políticas de competencia pueden hacerse redundantes ya que la competencia extranjera tiende a garantizar que dichos mercados tienen un nivel adecuado de contestabilidad. Aca se discute la relacion general entre sector agrícola y política de competencia, en un contexto de relativa liberalización comercial.
    Keywords: Sector agricola
    JEL: F13
    Date: 2005–04–01
  2. By: Ramón Rosales; Edson Apaza; Jorge Alexander Bonilla Londoño
    Abstract: El documento tiene como objetivo principal mostrar el marco teórico y operativo de la economía de la producción de los bienes agrícolas. En el marco teórico se desarrollan los principios microeconómicos relacionados con la producción y los costos de los bienes agrícolas, así como las leyes que soportan la teoría de la dualidad. La parte empírica o aplicada del documento se centra en la estimación de modelos econométricos de las funciones de producción más utilizadas en la agricultura. A partir de los modelos estimados se derivan y se representan gráficamente los conceptos más importantes que se tienen en cuenta en el análisis económico de la producción agrícola. Las bases de datos se han construido a partir de experimentos agrícolas llevados a cabo en los centros de investigación agropecuaria de Colombia y México. Finalmente, el presente documento pretende contribuir al inicio de una serie de publicaciones en las que se muestre los resultados de distintos estudios llevados a cabo en el área de economía agrícola del Programa de Maestría en Economía del Medio Ambiente y Recursos Naturales – PEMAR de la Facultad de Economía de la Universidad de los Andes.
    Keywords: economía agrícola
    JEL: E23
    Date: 2004–09–01
  3. By: Bharat Ramaswami (Indian Statistical Institute, New Delhi); Pratap Singh Birthal (National Centre for Agricultural Economics and Policy Research); P.K. Joshi (International Food Policy Research Institute)
    Abstract: This paper is an empirical analysis of the gains from contract farming in the case of poultry production in the state of Andhra Pradesh in India. The paper finds that contract production is more efficient than noncontract production. The efficiency surplus is largely appropriated by the processor. Despite this, contract growers still gain appreciably from contracting in terms of lower risk and higher expected returns. Improved technology and production practices as well as the way in which the processor selects growers is what makes these outcomes possible. In terms of observed and unobserved characteristics, contract growers have relatively poor prospects as independent growers. With contract production, these growers achieve incomes comparable to that of independent growers
    Keywords: Contract Farming, Contracting, Poultry, Vertical Integration
    JEL: L23 L24 Q13
    Date: 2005–02
  4. By: David M. Brasington; Diane Hite
    Abstract: We first estimate the relationship between house prices and environmental disamenities using spatial statistics, confirming that nearby point-source pollutants depress house price. We then calculate implicit prices of environmental quality and related characteristics from the house price hedonics to estimate a demand curve for environmental quality, finding a price elasticity of demand of ?0.12. We find evidence of significant spatial effects in both the hedonic and demand estimations. We find that environmental quality and school quality are purchased together (elasticity =-0.80), environmental quality and house size are substitutes (elasticity=0.91), and environmental quality and lot size are not related goods.
  5. By: Rigoberto A. Lopez (University of Connecticut); Xenia Matschke (University of Connecticut)
    Abstract: This article tests the Protection for Sale (PFS) model using detailed data from U.S. food processing industries from 1978 to 1992 under alternative import demand specifications. All empirical results support the PFS model predictions and previous empirical work qualitatively. Although welfare weights are very sensitive to import demand specification, a surprising result is that we obtain weights between 2.6 and 3.6 for domestic welfare using import slopes or elasticities derived from domestic demand and supply functions. In contrast, results based on import slopes or elasticities from directly specified import demands (including the Armington model) yield the usual, unrealistically large estimates for the domestic welfare weight. We contend that the latter empirical paradox arises mainly because the explanatory variables tend to be extremely large for industries with low import ratios and/or low estimated elasticities or slopes resulting from relatively volatile import prices. The results with derived import parameters point to a much stronger role of campaign contributions within the PFS model than previously found. They also suggest that the commonly-used Armington estimates may not be appropriate for estimating the PFS model.
    Keywords: Trade protection, tariffs, lobbying, political economy, food manufacturing
    JEL: F13 F1 L66 C12
    Date: 2005–05
  6. By: John Quiggin (Risk & Sustainable Management Group, School of Economics, University of Queensland)
    Abstract: The precautionary principle, presented as a guide to environmental policy decisions in the presence of uncertainty, has been the subject of vigorous debate. However, the has generally not been discussed in relation to formal theories of choice under uncertainty developed as generalizations of the expected utility model. In this paper, it is argued that a formal basis for the precautionary principle may be found in an incompleteness hypothesis regarding formal models of choice under uncertainty. The incompleteness hypothesis states that estimates derived from formal models of choice under uncertainty will generally be over-optimistic and that the errors will be greater, the less well-understood is the problem in question.
    Keywords: precautionary principle, generalized expected utility theory
    JEL: D81 Q2
    Date: 2005–04
  7. By: Robert G. Chambers (Dept of Agricultural and Resource Economics, University of Maryland, College Park); John Quiggin (Department of Economics, University of Queensland)
    Abstract: This paper has two goals. First,we demonstrate that standard arguments and methods from production and duality analysis can be used to provide a comprehensive and general treatment of the value of information for a risk-averse firm with expected-utility (linear-in-probabilities) preferences and a general stochastic technology. Second, we place bounds on the value of information for a risk-averse firm and relate these bounds to characteristics of the technology and the producer's preferences. A particularly striking observation that emerges from this representation is that the most common representation of production uncertainty corresponds to a polar case that trivializes the role that information can play in economic decisionmaking under risk.
    Keywords: state-contingent production, value of information
    JEL: D8
  8. By: Robert G. Chambers (Dept of Agricultural and Resource Economics, University of Maryland, College Park); John Quiggin (Department of Economics, University of Queensland)
    Abstract: This paper develops an analytically tractable approach to the comparative statics of output subsidies for firms, with monotonic preferences over costs and returns, that face price and production uncertainty. We derive comparative static results for input demand and output supply.
    Keywords: state-contingent production, price subsides
    JEL: D81 Q15
    Date: 2004–01

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