|
on Agricultural Economics |
|
Issue of 2009‒10‒24
twenty-six papers chosen by |
| By: | Alston, Julian; Okrent, Abigail |
| Abstract: | Many commentators have claimed that farm subsidies have contributed significantly to the âobesity epidemicâ by making fattening foods relatively cheap and abundant and, symmetrically, that taxing âunhealthyâ commodities or subsidizing âhealthyâ commodities would contribute to reducing obesity rates. This paper makes three contributions. First, we review evidence from the literature on the impacts on food consumption and obesity resulting from subsidies applied in the past to production or consumption of farm commodities. Second, we develop and present new arguments and preliminary evidence on the impacts of past government investments in agricultural R&D on food consumption and obesityâthrough research-induced increases in agricultural productivity and the consequences for prices, production, and consumption of farm commodities. Third, we consider and compare the economic efficiency of hypothetical agricultural research policies (changing the orientation of agricultural research investments) versus hypothetical agricultural commodity subsidies and taxes as alternative mechanisms for encouraging consumption of healthy food or discouraging consumption of unhealthy food, or both. |
| Keywords: | Demand and Price Analysis, Food Consumption/Nutrition/Food Safety, Health Economics and Policy, |
| Date: | 2009–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae9p:53336&r=agr |
| By: | Gil, Jose; Angulo, Ana; Mtimet, Nadhem |
| Abstract: | Many commentators have claimed that farm subsidies have contributed significantly to the âobesity epidemicâ by making fattening foods relatively cheap and abundant and, symmetrically, that taxing âunhealthyâ commodities or subsidizing âhealthyâ commodities would contribute to reducing obesity rates. This paper makes three contributions. First, we review evidence from the literature on the impacts on food consumption and obesity resulting from subsidies applied in the past to production or consumption of farm commodities. Second, we develop and present new arguments and preliminary evidence on the impacts of past government investments in agricultural R&D on food consumption and obesityâthrough research-induced increases in agricultural productivity and the consequences for prices, production, and consumption of farm commodities. Third, we consider and compare the economic efficiency of hypothetical agricultural research policies (changing the orientation of agricultural research investments) versus hypothetical agricultural commodity subsidies and taxes as alternative mechanisms for encouraging consumption of healthy food or discouraging consumption of unhealthy food, or both. |
| Keywords: | Spain, taxes, Food demand, Dietary quality, Consumer/Household Economics, Demand and Price Analysis, Food Consumption/Nutrition/Food Safety, Health Economics and Policy, |
| Date: | 2009–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae9p:53337&r=agr |
| By: | Mykel R. Taylor (School of Economic Sciences, Washington State University) |
| Abstract: | Many factors influence consumer purchasing habits, including food safety information. Concerns about food safety can be influenced by both idiosyncratic experiences and general media information. This study focuses on the reaction of consumers to changes in the amount of beef, pork, and poultry food safety information available in the media. A multinomial logit model is estimated to assess the probability that heterogeneous households avoid making purchases in response to changes in food safety information. Results of the model suggest that certain households respond to changes in the level of information available by choosing to avoid purchasing meat or poultry. |
| Keywords: | food safety, multinomial logit, consumer demand, meat and poultry |
| JEL: | D12 |
| Date: | 2009–05 |
| URL: | http://d.repec.org/n?u=RePEc:wsu:wpaper:mtaylor-1&r=agr |
| By: | Breen, J.; Clancy, D.; Moran, B.; Thorne, F. |
| Abstract: | Numerous studies exist reporting estimates of the theoretical potential for growing energy crops in the Ireland; however a knowledge gap exists on the extent to which Irish farmers would actually choose to grow these crops. We investigated the influence of selected individual and farm characteristics on willingness to consider growing energy crops among farm operators in Ireland. A sample of 958 operators selected by stratified sampling technique was used. A probit model was used to determine the extent to which selected individual and farm characteristics influence the willingness of farmers to consider alternative cropping systems. The results showed that willingness to adopt energy crops in Ireland was significantly influenced by the agricultural educational level of farmers, farm size, and farm system. In the final model specification, farm profit, land tenancy, general education level of the farm operator, contact with extension agents, solvency and age of the operator were not significant variables affecting willingness to adopt. The policy implications of the research findings are discussed. |
| Keywords: | Farm Level Decision Making, Energy Crops, Adoption, Innovation, Probit, Agribusiness, Agricultural and Food Policy, Environmental Economics and Policy, |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:ags:rercwp:52126&r=agr |
| By: | Luc Christiaensen |
| Abstract: | The 2008 episode of food price explosion, political turmoil, and human suffering revealed important flaws in the current global food architecture. This paper argues that to safeguard the strengths of the current system, four failures in market functioning and policymaking must be addressed. First, governments must reinvest in agriculture with a focus on public goods and subject to increased public accountability to re-ensure the global food supply. Second, the policy-induced link between food and fuel prices must be broken through a revision of EU and US agro-fuel policies. Third, better sharing of information on food stocks, stricter WTO regulation of export restrictions, and some form of globally managed buffer stock will be minimum requirements to prevent the resurgence of inefficient national food self-sufficiency policies. Fourth, a market-based food security system is only sustainable given well functioning national social safety nets. |
| Keywords: | agriculture, agro-fuels, food crisis, food security |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:2009-04&r=agr |
| By: | Sophia Davidova; Lena Fredriksson; Alastair Bailey |
| Abstract: | Factor and cluster analysis are used to analyse the attitudes and perceptions of agricultural households in five EU New Member States towards farming, commercialisation, and barriers to and drivers for an increased integration in agricultural markets. The contribution of unsold output to the total household income is valued. A stepwise linear regression is employed to detect important variables explaining the degree of agricultural market integration of farm households. The analysis indicates that subsistence farming is of utmost importance for the rural poor, and particularly in Bulgaria and Romania. The proportion of consumption from own production, manual cultivation techniques and distance to an urban centre negatively affect output sales. Rural development policies targeted at rural physical and market infrastructure might relieve some of these constraints. |
| Keywords: | Agricultural households; subsistence; commercialisation; incomes; cluster analysis; stepwise regression |
| JEL: | Q12 Q13 O18 |
| Date: | 2009–10 |
| URL: | http://d.repec.org/n?u=RePEc:ukc:ukcedp:0920&r=agr |
| By: | Sussman, Deborah |
| Abstract: | This bulletin provides an overview of trends in cropland values in Canada. Cropland values are a major component of farm wealth which, together with income can be used as a measure of the economic well-being of farm households. Cropland values are provided for a 3-year period, 2005-2007, for each province and farm type (beef, hog, poultry and egg, dairy, grain and oilseed, potato, greenhouse, and fruit and vegetable farms). |
| Keywords: | Canada, Province, cropland, value, beef, hog, poultry and egg, dairy, grain and oilseed, potato, greenhouse, fruit and vegetable, Agricultural and Food Policy, Agricultural Finance, |
| Date: | 2009–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaacem:53931&r=agr |
| By: | Lin, Biing-Hwan; Yen, Steven; Dong, Diansheng; Smallwood, David |
| Abstract: | Most Americans need to consume more fruits, vegetables, and dairy products. This need is particularly acute among low-income individuals. The objective of this study is to examine the cost effectiveness of two economic policies that use alternative policy levers available within the Supplemental Nutrition Assistance Program (formerly Food Stamp Program) to increase consumption of these under-consumed foods. Data from three nationally representative surveys are used to estimate demand elasticities, marginal propensity to spend on food out of food stamp benefits, and consumption amount of and spending on under-consumed foods among food stamp recipients. Results of the analyses suggest that a 10% price subsidy would curtail consumption deficiencies by 4â7% at an estimated cost of $734 million a year. When the same $734 million is used to finance food stamp benefits, consumption deficiencies are predicted to narrow by only 0.35 to 0.40%. |
| Keywords: | CEX, SNAP, Price subsidy, NHANES, NFSPS, Vegetables, Milk, Fruits, Food stamps, Consumer/Household Economics, Demand and Price Analysis, Food Consumption/Nutrition/Food Safety, Health Economics and Policy, C34, D12, Q18, |
| Date: | 2009–06 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae9p:53339&r=agr |
| By: | Leonith Hinojosa |
| Abstract: | The trade-sustainable impact assessment of the European Union-Mercosur trade agreement found that the economic impact of the trade liberalisation scenario could be positive in the agriculture sector of Mercosur countries. However, it also found that the social and environmental impacts would be mixed and potentially detrimental. This paper addresses the likely effects on the livelihoods of vulnerable rural populations. It argues that the potential impacts can be analysed within a diversified livelihood strategies framework, which is expanded to include institutional and policy factors. It concludes that the negative expected impact responds to the highly uneven access to capital assets. On the other hand, the effects are not generalised to all Mercosur countries, nor to all regions in each of the member countries. Enhancing or mitigating measures refer to the importance of sequencing and regulation to improve disadvantaged groups’ abilities to participate in trade-led agricultural intensification or industrialisation processes. |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:bwp:bwppap:8109&r=agr |
| By: | Todd, Jessica; Mancino, Lisa; Leibtag, Ephraim; Tripodo, Christina |
| Abstract: | This report provides a detailed description of the methodology used to construct ERSâs Quarterly Food-at-Home Price Database (Q-FAHPD). As the name suggest, these data provide quarterly observations on the mean price of 52 food categories for specific U.S. markets. We provide a description of the Nielsen Homescan data that was used to create this database, the methodology used to classify foods into food groups, how we determined the appropriate the level of aggregation (sub-regional markets) and our calculation of average prices for each food group. This report also contains an overview and summary of the resulting data. |
| Keywords: | Nielsen Homescan, food prices, diet quality, market prices, Demand and Price Analysis, Food Consumption/Nutrition/Food Safety, Health Economics and Policy, |
| Date: | 2009–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae9p:53341&r=agr |
| By: | Luiza de Marilac de Souza (Fundação João Pinheiro); Roberto Nascimento Rodrigues (Cedeplar-UFMG); Carla Jorge Machado (Cedeplar-UFMG) |
| Abstract: | This note presents a brief historical review of the food issue in Brazil, in order to allow understanding how the initial process of food production, regional differences and the development of public policies for the food supply contributed to the current food situation in Brazil. Major research findings that addressed the topic are highlighted. Data revealed improvements in indicators of malnutrition. |
| Keywords: | Brazil |
| JEL: | J18 J17 N96 |
| Date: | 2009–09 |
| URL: | http://d.repec.org/n?u=RePEc:cdp:texdis:td365&r=agr |
| By: | Ericson, Tina; Pelling, Erik; Surry, Yves |
| Abstract: | Macedonia, as a candidate country to the EU and a member of the WTO is in need of a comprehensive, transparent, and internationally comparable assessment of the support to agriculture in the country. OECD that has been measuring support to agriculture on a yearly basis, in its member countries as well as some other countries since the mid-1980s offers a good tool for such a task. The method is known for its most important indicator, the Producer Support Estimate (PSE). Using this method, data on Macedonian agricultural policy measures, in place â partly or entirely - for the period 1999 to 2004, have been gathered and categorized in order to arrive at an estimate of the level of support. This report presents the main findings of this assessment. |
| Keywords: | FYR Macedonia, Producer Support Estimate (PSE), agricultural support, trade protection, Agricultural and Food Policy, |
| Date: | 2009–09–25 |
| URL: | http://d.repec.org/n?u=RePEc:ags:suaswp:53839&r=agr |
| By: | Stithou, Mavra |
| Abstract: | This paper focuses on providing evidence of what explains respondent certainty by assessing at the same time the sensitivity of the Contingent Valuation Method (CVM) to payment vehicle effect. Two different samples were collected from local residents and foreign visitors of the Zakynthos Island in Greece and a split-sample approach was employed. The elicited conservation values concerned two endangered species, the loggerhead turtle, Caretta caretta and the monk seal, Monachus monachus. In terms of policy implications, the stated Willingness-to-Pay (WTP) values confirmed that there is a potential for a range of internal funding options, which could sustain the future operation of the existing National Marine Park of Zakynthos (NMPZ). From a methodological point of view, the study explores the determinants of self-reported certainty with regard not only to different payment modes but also to attitudinal and socio-economic variables and adds evidence to the debate about the validity of CVM by testing the presence of a payment vehicle effect. The results show evidence of sensitivity of the method to the mode of payment and reveal a relationship between the chosen payment vehicle and respondents' degree of certainty. |
| Keywords: | National Marine Park of Zakynthos (Greece); Contingent Valuation; Biodiversity Conservation; Payment Vehicle Effect; Polychotomous Choice; Respondent Certainty |
| Date: | 2009–09 |
| URL: | http://d.repec.org/n?u=RePEc:stl:stledp:2009-21&r=agr |
| By: | Salvioni, C.; Esposito, L.; Henke, R.; Rondinelli, V. |
| Abstract: | Using the data gathered by the Business Survey on Agriculture survey on a stratified random sample of Italian farm businesses below 4 European economic size units as a case study, this paper explores the diffusion of diversification strategies among small farms. The analysis has shown that more than a half of small farms is adopting some form of diversification. Small farms are more strongly involved in pluriactivity, while their involvement in broadening and deepening strategies appears only marginal. This latter result is partly due to the underevaluation of diversification caused by the lack of detailed statistical information about diversified activities used by farms, and, partly, due to the structural characteristics of small farms. Smaller farms are usually characterized by a lack of capital; as a consequence they can often redeploy only their labour off the farm. The characteristics associated with the targeted group of farms show that small farms using broadening strategies present much better economic results than conventional small farms. More specifically, farms using broadening strategies appear to be the winning ones in terms of net farm income per family working unit. |
| Keywords: | Agribusiness, Agricultural and Food Policy, Q12, R29, L25, |
| Date: | 2009–10–06 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa111:53964&r=agr |
| By: | Dennis Tao Yang; Xiaodong Zhu |
| Abstract: | This paper develops a two-sector model that illuminates the role played by agricultural modernization in the transition from stagnation to growth. When agriculture relies on traditional technology, industrial development reduces the relative price of industrial products, but has a limited effect on per capita income because most labor has to remain in farming. Growth is not sustainable until this relative price drops below a certain threshold, thus inducing farmers to adopt modern technology that employs industry-supplied inputs. Once agricultural modernization begins, per capita income emerges from stasis and accelerates toward modern growth. Our calibrated model is largely consistent with the set of historical data we have compiled on the English economy, accounting well for the growth experience of England encompassing the Industrial Revolution. |
| Keywords: | long-term growth, transition mechanisms, relative price, agricultural modernization, structural transformation, the Industrial Revolution, England. |
| JEL: | O41 O33 N13 |
| Date: | 2009–10–13 |
| URL: | http://d.repec.org/n?u=RePEc:tor:tecipa:tecipa-376&r=agr |
| By: | Mezgebo, Taddese |
| Abstract: | Using Johansen (1998 and 1991) vector error correction model and related extensions optimal locations where effective stabilization intervention can be done are identified. It is found that producer centers of Shashimiene and Bale Robe and Deficit market of Jimma are the locations where effective stabilization of wheat price can be done with least cost. However the national wheat market seems to have better capacity to process shocks coming from deficit markets and central markets than surplus markets. So targeting surplus markets, though effective in long run, can result on short run increase in volatility. Moreover, even though, distance could be one factor determining the inclusion of additional markets in to the rule of one price, it was not found to be the main factor in Ethiopian wheat markets. This implies that in highly imperfect market cointegration may not be solely related to distance only. Other factors like the level of market failures and the development of complementary institutions may influence the level of cointegration. Fortunately the search procedure for boundary of markets operating under rule of one price followed by earlier papers, though theoretically unsound is observed to work in Ethiopia wheat markets. |
| Keywords: | cointegration food price inflation ethiopia |
| JEL: | O55 L70 |
| Date: | 2009–08–18 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:17960&r=agr |
| By: | Korkeala, Outi; Newhouse, David; Duarte, Mafalda |
| Abstract: | In rural Indonesia, around 60 percent of workers engage in agriculture and face regular climatic shocks that may threaten their crop production, household income, and human capital investments. Little is known about households’ ability to maintain consumption in response to these shocks. This paper uses both longitudinal and repeated cross-sectional data to examine the extent to which farm profits and household consumption are reduced by delayed monsoon onset, an important determinant of rice production in Indonesia. It also investigates whether poor households are more vulnerable to delayed onset. Overall, delayed onset has minor effects on rural households’ profit and consumption. For poor households, defined as those with average per capita consumption in the lowest quintile, delayed onset the previous year is associated with a 13 percent decline in per capita consumption. Most of this decline is due to an increase in household size, however, and delayed onset two years ago is positively correlated with consumption. The findings suggest that poor households experience greater volatility but no lasting reduction in consumption following delayed monsoon onset. |
| Keywords: | Rural Poverty Reduction,Small Area Estimation Poverty Mapping,Consumption,Regional Economic Development |
| Date: | 2009–10–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:5070&r=agr |
| By: | Allen, T.; Allais, O.; Nichele, V.; Padilla, M. |
| Abstract: | This paper aims at simulating optimal prices satisfying public health recommendations in terms of nutrient adequacy. This implies to estimate a complete food demand system in order to compute price elasticities. Food consumption behaviors are described by an AI functional form [Deaton and Muellbauer(1980)] augmented to control for habit persistence. The demand system is estimated using the Iterated Least Square Estimator developed by Blundell and Robin (1999). We use French household expenditure data drawn from TNS Worldpanel covering 130 periods of 4 weeks from 1996 to 2005. Given the nature of our data, households are split into 8 cohorts based on two socio-demographic variables: date of birth and social status. A revised aggregation into 27 food groups is proposed in this paper. More precisely, commodities are grouped into homogeneous categories in terms of nutritional content and consumer preferences. Nutrient adequacy is defined using the MAR (Mean Adequacy Ratio), a nutrient only-based indicator. We calculate nutrient adequacy for 12 essential nutrients. Optimal prices are derived following Ramsey's approach to optimal taxation; Maximizing social welfare under nutritional constraints results in 27 optimal price variations or tax rates, each defined as a nonlinear function of all direct and cross price elasticities and the above mentioned indicator for all food groups. |
| Keywords: | Household survey data, cohort, AI demand system, nutrient adequacy, diet quality, fat tax policy, Consumer/Household Economics, Food Consumption/Nutrition/Food Safety, Health Economics and Policy, D12, C33, |
| Date: | 2009–06 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae9p:53335&r=agr |
| By: | Jason Junge; David Levinson (Nexus (Networks, Economics, and Urban Systems) Research Group, Department of Civil Engineering, University of Minnesota) |
| Abstract: | Roads cover a signiÞcant fraction of the land area in many municipalities. The public provision of roads means this land is exempt from the local property tax. Transferring roads from public to private ownership would not only remove maintenance costs from city budgets, but increase potential property tax revenue as well. This paper calculates the value of the land occupied by roads in sample cities and determines the potential revenue increase if they were subject to property tax. Further calculation computes the extent to which the property tax rate could be reduced if the land value of roads were added to the tax base. |
| Keywords: | tax, land value, locational analysis, transportation finance |
| JEL: | R40 R11 R14 |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:nex:wpaper:landvalueoflocalroads&r=agr |
| By: | Xu, Xin; Variyam, Jayachandran N.; Zhao, Jenny; Chaloupka, Frank |
| Abstract: | Once considered as a serious public health issue only in developed countries, now overweight and obesity have dramatically increased in low- and middle-income countries, especially in urban settings (WHO, 2008). The main purpose of this study is to explore the economic incentives for this rapid growth in obesity rates, by studying variations in obesity over time and across geographic regions in the United States. Although a number of researchers and policymakers have devoted significant resources to address the recent rapid rise in obesity in the United States, âthe prevalence of overweight and obesity has increased sharply since the mid 1970sâ (Centers for Disease Control, 2008) and most of this increase occurred in the 1980s and 1990s (Cutler, et al., 2003). More importantly, changes in food prices have also occurred over the past 30 years and have occurred simultaneously with the obesity epidemic (Finkelstein, et al., 2005). In this study, we investigate how the decline in food prices in the last three decades affects the long-run growth of obesity rates. We take the advantage of the large panel data that cover for the time periods with the fastest growth of obesity rates, by using metropolitan samples from the National Health Interview Survey (NHIS) and information on prices of food at home and food away from home from these major metropolitan areas for years 1976 to 2001. Specifically, instead of using absolute food prices, we explore the impacts from changes in relative prices of food at home and food away from home (i.e. food prices relative to prices for a market basket of consumer goods and services in these metropolitan areas), as well as changes in prices of food at home and food away from home on the growth in obesity rates during this time frame. We also control for the changes in contextual factors and changes in value of female in these metropolitan areas. Our findings reveal the important fact that changes in relative food prices can explain about 20 percent of the obesity growth during this time period and such effect is more pronounced for the low-educated. The results of the study provide an interpretation of the long-run growth of obesity rates in urban settings. |
| Keywords: | Consumer/Household Economics, Food Consumption/Nutrition/Food Safety, Health Economics and Policy, |
| Date: | 2009–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae9p:53344&r=agr |
| By: | Judge, Lawrence J.; Lloyd, James W.; Bartlett, Paul C. |
| Abstract: | Bovine somatoropin (bST) alters total milk production and production patterns in dairy cows and understanding the economic benefits of bST for the dairy producer are critical. Holstein cows (n = 555) from four Michigan dairy farms were randomly assigned as untreated controls or to receive 500 mg of bovine somatotropin (PosilacR) administered every 14 days beginning at 63 to 69 days of lactation and continuing until approximately 21 days prior to the end of lactation or until the animal was removed from the herd. Average peak milk production was 50.8 kg / day and occurred at an average of 113 9 days of lactation for bST-treated cows while average peak production was 48.9 kg / day occurring at an average of 86.4 days of lactation for control cows; both parameters were significantly greater for bST-treated cows compared to controls. Study cows treated with bST were significantly more persistent in lactation (7% greater lactational persistency) compared to control cows. All DHIA estimates and actual milk produced were not significantly different between the study treatment groups for any of the four comparisons made (first, second, third monthly tests after bST treatment initiation and final (305-day) DHIA production estimates); however, the accuracy of DHIA production estimates was significantly affect by the amount of time elapsed since bST but became non-significant by the third DHIA test date. The use of bST changed NFI for each of the four study farms by $96.21, $3.57, $78.71 and ($7.15) per bST-treated cow, respectively during the trial period (from 63 to 305 days of lactation). The overall average change in NFI attributable to bST was $43.01 per bST-treated cow. 2 Profitability of bST use was observed to be quite variable between farms studied because many factors were found to affect the change in NFI per cow resulting from bST use; the level of production response and the price received for milk had the largest effects on the change in NFI associated with bST use; by contrast, price paid for bST itself and feed had only minimal effects on bST-associated profitability. Diseases that may be associated with bST may reduce the profitability of this product and need to be considered as a cost of bST use if present. |
| Keywords: | bovine somatotropin, dairy, net farm income, Farm Management, Livestock Production/Industries, Productivity Analysis, Research and Development/Tech Change/Emerging, |
| Date: | 2009–09 |
| URL: | http://d.repec.org/n?u=RePEc:ags:midasp:53966&r=agr |
| By: | Elizabeth Fortin |
| Abstract: | This paper considers struggles of legitimation by the South African government over the first ten years of the country’s democracy, by focusing on its engagement with policymaking processes in relation to land tenure reform in the former 'homelands' of the country. During such periods of upheaval and change, the achievement of legitimacy by the state will only be achieved through deeply political processes. In exploring the strategies adopted by policy-makers and bureaucrats to legitimise contested political change, it considers how they were influenced by wider ideals of participatory policymaking and consultation. However, in the process, the paper also demonstrates how they were further shaped by the everyday realities determining the practices of governing, as well as the changing extent to which government officials were constrained in their own ability to influence policy. In this context, it is argued, claims of participatory policy-making largely came to constitute strategies of legitimation for policies that had already been formulated. |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:bwp:bwppap:9009&r=agr |
| By: | Huifang Zhang; Karina Gallardo; Eugene Kupferman (School of Economic Sciences, Washington State University) |
| Abstract: | Ethylene treatment has proven an effective way to shorten the postharvest period required for winter Anjou pears to ripen and allows market availability year round. However, the eating quality of pears may vary under different treatments. A sensory experiment and a consumer survey including valuation, assessments of sensory characteristics, purchasing habits, and demographics were conducted. Analysis indicates that the treatment-induced eating quality significantly affects consumers’ willingness to pay (WTP). Mean WTP for each treatment indicates that consumers prefer the pears with a 6-day treatment and on average are willing to pay a premium of $0.25/pound compared to the market price. |
| Keywords: | Pears, Sensory, Willingness to pay |
| JEL: | Q13 M31 |
| Date: | 2009–09 |
| URL: | http://d.repec.org/n?u=RePEc:wsu:wpaper:gallardo-2&r=agr |
| By: | Hassan, Daniel; Monier-Dilhan, Sylvette; Nichele, Veronique; Simioni, Michel |
| Abstract: | This research addresses two important issues for the future expansion of organic consumption in France. The first one is related to knowing whether the organic choice is a permanent feature of consumerâs attitude or not: Do organic buyers occasionally pick one organic product or do they choose organic for âseveralâ categories? The second issue concerns the impact of prices on buying organics which is revisited, distinguishing between capturing new consumers and increasing the demand coming from people already involved in organic markets. These questions are examined using the market basket approach; the price issue requires further estimations of demand models. The study relies on two staple food products, eggs and milk. The findings are : (i) choosing organic for one of the two items reinforces the probability of purchasing also the organic version of the second item; (ii) marginal reductions of the organic price have no impact on the decision of buying organic rather than conventional products; (iii) on the contrary, when people already purchase organic products, price elasticities are rather high; (iv) organic buyersâ demographic profile is not related to income neither to age nor to family size, but to the educational level. |
| Keywords: | market basket approach, purchasing behavior, logit model, Consumer/Household Economics, Demand and Price Analysis, Food Consumption/Nutrition/Food Safety, C35, D12, Q13, |
| Date: | 2009–06 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae9p:53342&r=agr |
| By: | Barreiro-Hurle, Jesus; Gracia, Azucena; de-Magistris, Tiziana |
| Abstract: | The provision of nutrition and health information on food labels is increasing as an industry and regulation answer to the growing consumer concern with diet-health relationships. Prior research has shown that the presence of this information on food labels is valued by consumers; however there is still no clear pattern on which labelling options are more valued and how different consumers value the different options. This paper analyses the results of a choice experiment conducted to identify the effect of multiple health and nutrition information sources on consumer food choice, taking into account preference heterogeneity using a latent class approach. Results show that different consumer groups can be identified with clearly distinguishable valuation and behavioural patterns. A minority of consumers attaches high WTP to the provision of additional information in the nutrition facts panel, however this is not show for a vast majority who value claims. Moreover, not taking into account this preference heterogeneity can lead to policies that do not maximize consumer welfare. Based on the characteristics of consumers identified in each group, recommendations are made as to how both industry and public administration can move forward with the development of nutritional labelling guidelines or policies. |
| Keywords: | Nutrition facts panel, latent class, choice experiments, consumer, interactions, health claims, nutrition claims, Consumer/Household Economics, Food Consumption/Nutrition/Food Safety, Health Economics and Policy, |
| Date: | 2009–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae9p:53338&r=agr |
| By: | Crozet, Matthieu; Head, Keith; Mayer, Thierry |
| Abstract: | Quality sorting and trade: Firm-level evidence for French wine Investigations of the effect of quality differences on heterogeneous performance in exporting have been limited by lack of direct measures of quality. We examine exports of French wine, matching the exporting firms to producer ratings from two wine guides. We show that high quality producers export to more markets, charge higher prices, and sell more in each market. More attractive markets are served by exporters that, on average, make lower rated Champagne. Market attractiveness has a weakly negative effect on prices and a strongly positive effect on quantities, confirming the sign predictions of a simple quality sorting model. Methodologically, we make several contributions to the literature. First, we propose an estimation method for regressions of firm-level exports on ability measures and use Monte Carlo simulations to show that it corrects a severe selection bias present in OLS estimates. Second, we show how the means of quality, price, and quantity for exporters to a given market can be used to recover estimates of core parameters (which we compare with firm-level estimates) and discriminate between productivity and quality-sorting versions of the Melitz model. Our new method regresses country means on an index of each country's attractiveness and the fixed costs of entering it. We compare our method, which utilizes explanatory variables estimated in the firm-level regressions, to the conventional approach that relies on a reduced-form relationship with proxies for attractiveness and fixed costs. |
| Keywords: | Industrial Organization, F12, |
| Date: | 2009–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aawewp:53883&r=agr |