New Economics Papers
on Agricultural Economics
Issue of 2012‒07‒01
eighteen papers chosen by

  1. The Effects of Rural Land Right Security on Labour Structural Transformation and Urbanization: Evidence from Thailand By , Thanyaporn
  2. Trans-border Land Acquisitions: A New Guise of Outsourcing and Host Country Effects By Das, Gouranga
  3. Risk Management in Agri-food Chain By Bachev, Hrabrin
  4. Mapping the Impacts of Food Aid: Current Knowledge and Future Directions By Margolies, Amy; Hoddinott, John
  5. Explaining wheat yields in eighteenth-century Spain By Carlos Santiago-Caballero
  6. Determinants of market integration and price transmission in Indonesia By Varela, Gonzalo; Aldaz-Carroll, Enrique; Iacovone, Leonardo
  7. Greening China's rural energy : new insights on the potential of smallholder biogas By Christiaensen, Luc; Heltberg, Rasmus
  8. Does It Pay to Be a Cadre? Estimating the Returns to Being a Local Official in Rural China By Zhang, Jian; Giles, John T.; Rozelle, Scott
  9. A Multi-Stage Almost Ideal Demand System: the case of beef demand in Colombia By Andrés Ramírez Hassan
  10. Design and implementation features of the national household targeting system in the Philippines By Fernandez, Luisa
  11. Using Engel Curves to Measure CPI Bias for Indonesia By Susan Olivia; John Gibson
  12. Materials Prices and Productivity By Enghin Atalay
  13. A Producer Theory with Business Risks By Seong-Hoon Kim; Seongman Moon
  14. The impacts of natural disasters on global supply chains By Masato Abe; Linghe Ye
  15. Behavioral Economics and the Demand for Alcohol: Results from the NLSY97 By Henry Saffer; Dhaval Dave; Michael Grossman
  16. Expanding Carbon Markets through New Market-based Mechanisms: A synthesis of discussions and submissions to the UNFCCC By Marcu, Andrei
  17. Location, Location, Location - Extracting Location Value from House Prices By Jens Kolbe; Rainer Schulz; Martin Wersing; Axel Werwatz
  18. Ecological Macroeconomics: An application to climate change By Armon Rezai; Lance Taylor; Reinhard Mechler

  1. By: , Thanyaporn
    Abstract: This paper attempts to contribute to the understanding of the impacts of secure rural agricultural land rights on labour structural transformation from agriculture to non-agriculture as well as on urbanization, with a specific focus on Thailand. Using pro
    Keywords: land right security, labour structural transformation, urbanization
    Date: 2012
  2. By: Das, Gouranga
    Abstract: The rush for land acquisition?primarily driven by food shortages, food price volatility, and the run for agrofuel?has drawn considerable attention, as documented by reports published in late 2009, 2010, and 2011. Terminological differences aside, it is?qu
    Keywords: land deals, food prices, land premium, wage gap, immiserizing deals
    Date: 2012
  3. By: Bachev, Hrabrin
    Abstract: This paper incorporates the interdisciplinary New Institutional Economics and presents a comprehensive framework for analyzing the risk management in agri-food sector. First, it specifies the diverse (natural, technical, behavioral, economic, policy etc.) type of agri-food risks, and the (market, private, public and hybrid) modes of their management. Second, it defines the efficiency of risk management and identifies (personal, institutional, dimensional, technological, natural) factors of governance choice. Next, it presents stages in analysis of risk management and for the improvement of public intervention in the risk governance. Finally, it identifies contemporary opportunities and challenges for risk governance in agri-food chain.
    Keywords: risk management; market; private; and public governance; agri-food chain
    JEL: L25 D81 Q12 Q18 D23 L14 Q52 O17 Q13 L22
    Date: 2012–05–30
  4. By: Margolies, Amy; Hoddinott, John
    Abstract: This paper provides an overview on the impacts of food aid. We consider its effects on consumption, nutrition, food markets and labour supply, as well as the extent to which it exacerbates or mitigates conflict. We also consider the comparative evidence o
    Keywords: food aid, humanitarian assistance, social protection, disincentives, conflict
    Date: 2012
  5. By: Carlos Santiago-Caballero
    Abstract: From an extensive dataset of wheat yields at municipal level in mid eighteenth-century Spain, a detailed statistical analysis indicates that the differences in wheat yields were mainly a consequence of different natural conditions, and that demand did not have a significant influence. Counterfactual exercises show that improvements in rainfall, altitude or roughness of terrain would have a significant impact on average yields. The paper concludes that, although grain markets in the mid-eighteenth century were well integrated, producers addressed the growing demand not by investing in increasing yields, but by extending the area of cultivated land using the still abundant pastures. The low grain yields in Spain were in part a consequence of the rational behaviour of producers who faced an economic environment characterized by an elastic supply of land
    Keywords: Yields, Land, Market, Climate
    JEL: N33 N34 N53 N54
    Date: 2012–06
  6. By: Varela, Gonzalo; Aldaz-Carroll, Enrique; Iacovone, Leonardo
    Abstract: This paper investigates the determinants of price differences and market integration among Indonesian provinces, using data from retail cooking oil, rice and sugar markets during the period 1993-2007, and from wholesale maize and soybean markets during the period 1992-2006. The authors measure the degree of integration using co-integration techniques, and calculate average price differences. They use regression analysis to understand the drivers of price differences and market integration. For rice and sugar, they find wide market integration and low price differences, in the range of 5-12 percent. For maize, soybeans and cooking oil, they find less integration and higher price differences (16-22 percent). Integration across provinces is explained by the remoteness and quality of transport infrastructure of a province. Price differences across provinces respond to differences in provincial characteristics such as remoteness, transport infrastructure, output of the commodity, land productivity and income per capita.
    Keywords: Markets and Market Access,Transport Economics Policy&Planning,Access to Markets,Climate Change Economics,Emerging Markets
    Date: 2012–06–01
  7. By: Christiaensen, Luc; Heltberg, Rasmus
    Abstract: Clean, safe energy for rural areas is an important component of green growth and sustainable development. Biogas could be an important contributor, if its record in reality lives up to its expected potential. This paper provides a preliminary assessment of biogas use by smallholder farmers in rural China, using data collected from 2,700 households in five provinces. The authors find that user satisfaction is high, and environmental and economic benefits appear tangible. There are strong indications of reduced use of wood and crop residues for fuel. Less time is spent on collecting fuel wood and cooking, which is especially beneficial to women. Adopters also save on fertilizers, because of the use of biogas residues. Moreover, problems with suspension of biogas use, whether due to technical or human factors, remained limited. However, few tangible benefits to respiratory health were detected. Overall, these findings are grounds for optimism about the potential for of smallholder biogas to contribute to more sustainable development, in China and beyond.
    Keywords: Energy Production and Transportation,Climate Change Mitigation and Green House Gases,Renewable Energy,Engineering,Energy and Environment
    Date: 2012–06–01
  8. By: Zhang, Jian (Central University of Finance and Economics); Giles, John T. (World Bank); Rozelle, Scott (Stanford University)
    Abstract: Recruiting and retaining leaders and public servants at the grass-roots level in developing countries creates a potential tension between providing sufficient returns to attract talent and limiting the scope for excessive rent-seeking behavior. In China, researchers have frequently argued that village cadres, who are the lowest level of administrators in rural areas, exploit personal political status for economic gain. Much existing research, however, compares the earnings of cadre and non-cadre households in rural China without controlling for unobserved dimensions of ability that are also correlated with success as entrepreneurs or in non-agricultural activities. The findings of this paper suggest a measurable return to cadre status, but the magnitudes are not large and provide only a modest incentive to participate in village-level government. The paper does not find evidence that households of village cadres earn significant rents from having a family member who is a cadre. Given the increasing returns to non-agricultural employment since China‘s economic reforms began, it is not surprising that the returns to working as a village cadre have also increased over time. Returns to cadre-status are derived both from direct compensation and subsidies for cadres and indirectly through returns earned in off-farm employment from businesses and economic activities managed by villages.
    Keywords: returns to political status, public sector labor markets, village political economy, rural China
    JEL: O16 O17 J45 P25 P26
    Date: 2012–06
  9. By: Andrés Ramírez Hassan
    Abstract: The main objective in this paper is to obtain reliable long-term and shortterm elasticities estimates of the beef demand in Colombia using quarterly data since 1998 until 2007. However, complexity on the decision process of consumption should be taken into account, since expenditure on a particular good is sequential. In the case of beef demand in Colombia, a Multi-Stage process is proposed based on an Almost Ideal Demand System (AIDS). The econometric novelty in this paper is to estimate simultaneously all the stages by the Generalized Method of Moments to obtain a joint covariance matrix of parameters estimates in order to use the Delta Method for calculating the standard deviation of the long-term elasticities estimates. Additionally, this approach allows us to get elasticities estimates in each stage, but also, total elasticities which incorporates interaction between stages. On the other hand, the short-term dynamic is handled by a simultaneous estimation of the Error Correction version of the model; therefore, Monte Carlo simulation exercises are performed to analyse the impact on beef demand because of shocks at different levels of the decision making process of consumers. The results indicate that, although the total expenditure elasticity estímate of demand for beef is 1.78 in the long-term and the expenditure elasticity estimate within the meat group is 1.07, the total short-term expenditure elasticity is merely 0.03. The smaller short-term reaction of consumers is also evidenced on price shocks; while the total own price elasticity of beef is -0.24 in the short-term, the total and within meat group long-term elasticities are -1.95 and -1.17, respectively.
    Date: 2012–06–14
  10. By: Fernandez, Luisa
    Abstract: This note describes the main design and implementation features of the National Household Targeting System for Poverty Reduction (NHTS-PR) of the Philippines. The system consists of a set of uniform and objective criteria to identify the poor. An objective criterion to select those that need help the most was seen by the Department of Social Welfare and Development (DSWD) as the main tool to improve delivery of social services. This was one of the main objectives defined by the social welfare reform, initiated by DSWD, since 2006. The targeting system uses a proxy means test (PMT) methodology to estimate the level of economic welfare of a household based on its socioeconomic and demographic characteristics. The system was centrally designed and implemented by DSWD. This note contains five sections. After this introduction, the next section describes the background and rationale behind the design of the NHTS-PR. The third section describes the main design features of NHTS-PR. The fourth section presents the implementation phases. Finally, the fifth section presents the main conclusions and lessons.
    Keywords: Rural Poverty Reduction,Services&Transfers to Poor,Regional Economic Development,Poverty Monitoring&Analysis,Technology Industry
    Date: 2012–06–01
  11. By: Susan Olivia (Monash University); John Gibson (University of Waikato)
    Abstract: To measure real income growth over time a price index is needed to adjust for changes in the cost of living. The Consumer Price Index (CPI) is often used for this task but studies from several countries show the CPI is a biased measure of changes in the cost of living, leading to potentially wrong estimates of the rate of growth of real income. In this paper CPI bias for Indonesia is calculated by estimating food Engel curves for households with the same level of CPI-deflated incomes at four different points in time between 1993 and 2008. The results suggest CPI bias was initially negative during the Asian Crisis but has been positive since 2000. Over the entire period, CPI bias has averaged four percent annually, equivalent to almost one-third of the measured inflation rate.
    Keywords: CPI bias; Engel curve; inflation; measurement error
    JEL: C43 E31
    Date: 2012–06–21
  12. By: Enghin Atalay
    Abstract: There is substantial within-industry variation, even within industries that use and produce homogeneous inputs and outputs, in the prices that plants pay for their material inputs. I explore, using plant-level data from the U.S. Census Bureau, the consequences and sources of this variation in materials prices. For a sample of industries with relatively homogeneous products, the standard deviation of plant-level productivities would be 7% lower if all plants faced the same materials prices. Moreover, plant-level materials prices are both persistent across time and predictive of exit. The contribution of net entry to aggregate productivity growth is smaller for productivity measures that strip out di¤erences in materials prices. After documenting these patterns, I discuss three potential sources of materials price variation: geography, di¤erences in suppliers. marginal costs, and suppliers. price discriminatory behavior. Together, these variables account for 13% of the dispersion of materials prices. Finally, I demonstrate that plants.marginal costs are correlated with the marginal costs of their intermediate input suppliers.
    Keywords: CES,economic,research,micro,data,microdata
    Date: 2012–06
  13. By: Seong-Hoon Kim; Seongman Moon
    Abstract: In this paper, we consider a producer who faces uninsurable business risks due to incomplete spanning of asset markets over stochastic goods market outcomes, and examine how the presence of the uninsurable business risks affects the producer’s optimal pricing and production behaviours. Three key (inter-related) results we find are: (1) optimal prices in goods markets comprise ‘markup’ to the extent of market power and ‘premium’ by shadow price of the risks; (2) price inertia as we observe in data can be explained by a joint work of risk neutralization motive and marginal cost equalization condition; (3) the relative responsiveness of risk neutralization motive and marginal cost equalization at optimum is central to the cyclical variation of markups, providing a consistent explanation for procyclical and countercyclical movements. By these results, the proposed theory of producer leaves important implications both micro and macro, and both empirical and theoretical.
    Keywords: Uninsurable Business Risks, Markup, Risk Premium, Hedge and Offer, Price Inertia, Stochastic Dominance, Conditional Sales Ratio.
    JEL: D21 D42 D81
    Date: 2012–01
  14. By: Masato Abe; Linghe Ye (United Nations Economic and Social Commission for Asia and the Pacific (ESCAP))
    Abstract: This paper explores how global supply chains expand the risks of natural disasters and how natural disasters affect supply chain operations in the Asia-Pacific context.
    Keywords: Globalization, global supply chain, cross-border business and production networks, international logistics system, natural disaster risk, Japan, Thailand
    JEL: F2 F16
    Date: 2012–06
  15. By: Henry Saffer; Dhaval Dave; Michael Grossman
    Abstract: The behavioral economic model presented in this paper argues that the effect of advertising and price differ by past consumption levels. The model predicts that advertising is more effective in reducing consumption at high past consumption levels but less effective at low past consumption levels. Conversely, the model predicts that higher prices are effective in reducing consumption at low past consumption levels but less effective at high past consumption levels. Unlike the models used in most prior studies, this model predicts that the effects of policy on average consumption and on the upper end of the distribution are different. Both FMM and Quantile models were estimated. The results from these regressions show that heavy drinkers are more responsive to advertising and less responsive to price than are moderate drinkers. The empirical evidence also supports the assumption that education is a proxy for self-regulation. The key conclusions are that restrictions on advertising are targeted at heavy drinkers and are an underutilized alcohol control policy. Higher excise taxes on alcohol reduce consumption by moderate drinkers and are of less importance in reducing heavy consumption.
    JEL: D03 I18
    Date: 2012–06
  16. By: Marcu, Andrei
    Abstract: At the Durban meeting of the United Nations Framework Convention on Climate Change (UNFCCC), Parties to the Convention and observer organisations were invited to make submissions on a number of issues relevant to the discussions on various approaches, including opportunities for using markets, to enhance the cost-effectiveness of mitigation actions. This Special Report, produced by the newly created CEPS Carbon Market Forum (CMF), reviews the submissions by Parties and observer organisations, with a view to facilitating progress in the expansion of a global carbon market. In this context, the report aims to contribute to the European debate on the development of new market mechanisms and carbon markets, as well as to the UNFCCC negotiating process. It attempts to identify some of the main issues that will need to be addressed this year, leading to the 18th Conference of the Parties (COP) in Doha, and discusses the various options proposed. As a first output of the CEPS CMF on this issue, and given the state of negotiations under the UNFCCC, it does not propose solutions.
    Date: 2012–05
  17. By: Jens Kolbe; Rainer Schulz; Martin Wersing; Axel Werwatz
    Abstract: The price for a single-family house depends both on the characteristics of the building and on its location. We propose a novel semiparametric method to extract location values from house prices. After splitting house prices into building and land components, location values are estimated with adaptive weight smoothing. The adaptive estimator requires neither strong smoothness assumptions nor local symmetry. We apply the method to house transactions from Berlin, Germany. The estimated surface of location values is highly correlated with expert-based land values and location ratings. The semiparametric method can therefore be used for applications where no other location value information exists or where this information is not reliable.
    Keywords: Location value, adaptive weight smoothing, spatial modeling
    JEL: R31 C14
    Date: 2012
  18. By: Armon Rezai; Lance Taylor; Reinhard Mechler
    Date: 2012

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