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on Agricultural Economics |
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Issue of 2014‒03‒22
23 papers chosen by |
| By: | Mosheim, Roberto; Blaney, Don; Burdine, Kenny; Maynard, Leigh |
| Abstract: | Public risk management policies for dairy producers have the potential to induce expansion in milk supplies, which might lower farm-level prices and offset risk-reduction benefits. An evaluation of USDA’s Livestock Gross Margin-Dairy (LGM-Dairy) insurance program finds economic downside risk significantly reduced, with potential to induce modest supply expansion (0 to 3 percent) if widely adopted. Supply impacts are likely limited due to relatively low participation levels and a minimal (“inelastic”) supply response to risk. LGM-Dairy is more flexible and convenient than other risk management tools, such as hedging directly in futures or options markets, especially for small farms. |
| Keywords: | dairy, gross margins, risk management, LGM-Dairy, insurance, milk supplies, livestock, Agricultural and Food Policy, Livestock Production/Industries, |
| Date: | 2014–03 |
| URL: | http://d.repec.org/n?u=RePEc:ags:uersrr:164606&r=agr |
| By: | Catherine L. Kling (Center for Agricultural and Rural Development (CARD)); Yiannis Panagopoulos; Adriana Valcu; Philip W. Gassman (Center for Agricultural and Rural Development (CARD)); Sergey Rabotyagov; Todd Campbell (Center for Agricultural and Rural Development (CARD)); Mike White; Jeffrey G. Arnold; Raghavan Srinivasan; Manoj Jha; Jeff Richardson; R. Eugene Turner |
| Abstract: | In this paper, we discuss the importance of developing integrated assessment models to support the design and implementation of policies to address water quality problems associated with agricultural pollution. We describe a new modeling system, LUMINATE, which links land use decisions made at the field scale in the Upper Mississippi, Ohio, and Tennessee basins through both environmental and hydrologic components to downstream water quality effects and hypoxia in the Gulf of Mexico. This modeling system can be used to analyze detailed policy scenarios identifying the costs of the policies and their resulting benefits for improved local and regional water quality. We demonstrate the model’s capabilities with a simple scenario where cover crops are incentivized with green payments over a large expanse of the watershed. |
| Date: | 2014–03 |
| URL: | http://d.repec.org/n?u=RePEc:ias:cpaper:14-wp546&r=agr |
| By: | James Mabli; Julie Worthington |
| Keywords: | Child Food Security, Program Participation, Food Assistance, SNAP, Food Stamps |
| JEL: | I0 I1 |
| Date: | 2014–04–30 |
| URL: | http://d.repec.org/n?u=RePEc:mpr:mprres:8055&r=agr |
| By: | Capper, Judith L; Berger, Larry; Brashears, Mindy M; Jensen, Helen H. |
| Abstract: | � |
| JEL: | Q |
| Date: | 2014–03–11 |
| URL: | http://d.repec.org/n?u=RePEc:isu:genres:37409&r=agr |
| By: | Delbridge, Timothy A. |
| Abstract: | Introduction: Two recent papers, Delbridge et al. (2011) and Delbridge et al. (2013), have used agricultural trial data from Southwestern Minnesota to compare the profitability of organic and conventional cropping systems. These analyses found that organic cropping systems can earn more on a per-hectare basis (Delbridge et al., 2011) and a whole-farm basis (Delbridge et al., 2013) than a conventional cropping system, given the same machinery and labor endowments. However, in the years since the collection of the agricultural trial data on which these analyses are based, conventional grain prices have reached record levels and some organic crop producers have begun to abandon their organic certification and return to conventional production. The strong performance of conventional crop producers in 2011-2012 raises the question: would the results of these analyses hold if they included more recent data? This paper answers this question by updating the analyses performed by Delbridge et al. (2011) and Delbridge et al. (2013) with 2011 and 2012 yield and management data from the Variable Input Crop Management Systems (VICMS) trial and more recent input and output price information. |
| Keywords: | Crop Production/Industries, Farm Management, |
| Date: | 2014–03 |
| URL: | http://d.repec.org/n?u=RePEc:ags:umaesp:164685&r=agr |
| By: | Krishna, Vijesh; Qaim, Martin; Zilberman, David |
| Abstract: | Do transgenic crops cause agrobiodiversity erosion? We hypothesize that they increase productivity and reduce production risk and may therefore reduce farmer demand for on-farm varietal diversity, especially when only a few transgenic varieties are available. We also hypothesize that varietal diversity can be preserved when more transgenic varieties are supplied. These hypotheses are tested and confirmed with panel data for the case of transgenic cotton in India. Cotton varietal diversity in India, with of over 90% adoption of transgenic technology, is now at the same level than it was before the introduction of this technology. Some policy implications are discussed. |
| Keywords: | varietal diversity, biotechnology, smallholder farmers, production risk, India, Environmental Economics and Policy, Production Economics, Research and Development/Tech Change/Emerging Technologies, Risk and Uncertainty, D24, D81, O13, O44, Q12, Q16, Q57, |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:ubzefd:164678&r=agr |
| By: | Chandana Maitra (School of Population Health, The University of Queensland); Prof. D.S Prasada Rao (School of Economics, The University of Queensland) |
| Abstract: | In recent years, the process of economic growth in the Indian economy has been characterized by a peculiar divergence between the indicators of poverty and those of food security – the paradox of rising undernutrition and declining poverty rate over time. Given above, an important question that arises is, whether there is something inherent in poverty that drives food insecurity or whether the two phenomena are independent. The answer to this question has important policy implication because it tells US, in targeting the poor anti-poverty policies might lose sight of the food insecure households, nested in apparently non-poor households. Against this backdrop, the present paper attempts to explore the relationship between poverty and food security in terms of a self-reported, experiential measure of food security, using an urban cross section. The self-reported measure is based on a food security scale which was constructed by adapting the 18-item US Household Food Security Survey Module (HFSSM) in a setting of 500 low income urban slum households in Kolkata, in 2010-11. Based on the scale, households were classified as highly food secure, marginally food secure and food insecure. The relationship between poverty and food security was then examined by applying a simultaneous ordered probit model recognizing the possible endogeneity in the relationship. Results indicate that a poor household is likely to be more food insecure given certain socio-economic characteristics, with the policy implication that poverty alleviation measures would be effective in eliminating food insecurity. Apart from poverty, the other factors which significantly affect household food security status include household size and composition, gender and education level of the household head, indicating need for multi-pronged intervention in eliminating food insecurity. |
| Date: | 2014–03–07 |
| URL: | http://d.repec.org/n?u=RePEc:qld:uq2004:508&r=agr |
| By: | VAN DIJCK, Maarten (Flemish Heritage Agency, B-1210 Brussels; Faculty of Business Ecoomics, University of Hasselt); TRUYTS, Tom (CEREC, Saint Louis University; Université catholique de Louvain, CORE, Belgium) |
| Abstract: | After 1875, cheap grain from the United States and Russia flooded the European markets. Many countries like Germany, France, and Sweden turned to agricultural trade protection, while others, like the UK and Denmark, held on to a free trade position. Belgium adopted a middle position, leaving its grain markets open but protecting animal husbandry, dairy production, and the processing of foodstuffs. The econometric analysis of the votes of Belgian Members of Parliament on four proposals to install protectionist measures on agricultural trade seeks to identify which economic or political interests explain the Belgian policy option. |
| Date: | 2014–02–12 |
| URL: | http://d.repec.org/n?u=RePEc:cor:louvco:2014002&r=agr |
| By: | Muriithi, Beatrice; Matz, Julia |
| Abstract: | This paper describes the participation of smallholders in commercial horticultural farming in Kenya and identifies constraints and critical factors that influence their decision to participate in this industry by selling their produce. The study employs panel survey data on smallholder producers of both international (export) and domestic market vegetables and controls for unobserved heterogeneity across farmers. We find that participation of smallholders in both the domestic and export vegetable markets declined and that this trend is associated with weather risks, high costs of inputs and unskilled labour, and erratic vegetable prices, especially in the international market. Different factors are at play in determining a household’s market choice for the commercialisation of vegetables: credit is important only when vegetables are (also) exported, livestock ownership is negatively related to production for the domestic market, and distance to the nearest market town positively related to all pathways of commercialisation, for example. |
| Keywords: | horticulture, commercialisation, smallholders, Kenya, Agribusiness, International Relations/Trade, Marketing, O10, Q12, Q13, Q17, |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:ubzefd:164665&r=agr |
| By: | McCarthy, Nancy; Kilic, Talip |
| Abstract: | Across the developing world, public goods exert significant impacts on the local rural economy in general and agricultural productivity and welfare outcomes in particular. Economic and social-cultural heterogeneity have, however, long been documented as detrimental to collective capacity to provide public goods. In particular, women are often under-represented in local leadership and decision-making processes, as are young adults and minority ethnic groups. While democratic principles dictate that broad civic engagement by women and other groups could improve the efficiency and effectiveness of local governance and increase public goods provision, the empirical evidence on these hypotheses is scant. This paper develops a theoretical model highlighting the complexity of constructing a"fair"schedule of individual contributions, given heterogeneity in costs and benefits that accrue to people depending, for instance, on their gender, age, ethnicity, and education. The model demonstrates that representative leadership and broad participation in community organizations can mitigate the negative impacts of heterogeneity on collective capacity to provide public goods. Nationally-representative household survey data from Malawi, combined with geospatial and administrative information, are used to test this hypothesis and estimate the relationship between collective capacity for public goods provision and community median estimates of maize yields and household consumption expenditures per capita. The analysis shows that similarities between the leadership and the general population, in terms of gender and age, and active participation by women and young adults in community groups alleviate the negative effects of heterogeneity and increase collective capacity, which in turn improves agricultural productivity and welfare. |
| Keywords: | Economic Theory&Research,Housing&Human Habitats,Civil Society,Debt Markets,Community Development and Empowerment |
| Date: | 2014–03–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:6806&r=agr |
| By: | Gokcekus, Omer; Finnegan, Clare M. |
| Abstract: | The creation of new, sub-AVAs within Oregon’s Willamette Valley AVA may indicate a desire on the part of well-established wineries to “split” or separate their social grouping from those with lesser qualifications. Once their social cluster has been differentiated, we theorize that these wineries would be able to capitalize on their newly developed distinctiveness and collect a larger regional reputation premium. Based on 2,221 Wine Spectator rated pinot noir wines between 1984 and 2008, regression analyses demonstrate that indeed regional reputation premiums have significantly increased with the creation of sub-AVAs; and that the price-quality ratio gap between sub-AVAs and the rest of Willamette has widened. (JEL Classification: C20, Q12, Q13, L66) |
| Keywords: | Wine, classification, terroir, AVA, regional reputation premium, Agricultural and Food Policy, Demand and Price Analysis, Land Economics/Use, C20, Q12, Q13, L66, |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aawewp:164642&r=agr |
| By: | Rischke, Ramona; Simon, Chege Kimenju; Matin, Qaim; Stephan, Klasen |
| Abstract: | Many low income countries are experiencing a “nutrition transition” towards the consumption of more energy-dense, highly processed foods and beverages that are often high in caloric sweeteners, fat and salt. Changing lifestyles and urbanisation have coincided with a ‘retail revolution’, a rapid advance of supermarkets even in remote areas. Among the consequences of the nutrition transition have been expanding waistlines and surging rates of nutrition-related non-communicable diseases, including diabetes, heart diseases and certain cancers. Given the still prevailing rates of under-nutrition, affected countries face a double burden of malnutrition, and individuals that have overcome food poverty risk often remain health-poor. The effect of supermarkets on consumers’ diets and the nutrition transition remains unclear: By offering stable and consistent access to a wide range of foods with different dietary qualities, supermarkets could either discourage or contribute to the consumption of a well-balanced diet. This paper investigates the effect of supermarkets on consumption patterns using cross-sectional household survey data collected in Kenya in 2012. In order to establish causality, our sample was designed to be quasiexperimental in nature, with study sites differing in terms of supermarket access. We employ instrumental variable techniques to account for potential endogeneity due to selection effects regarding supermarket purchases. Our findings suggest that supermarket purchases increase the consumption of processed foods at the expense of unprocessed foods. Supermarkets are associated with higher expenditure shares and calorie shares of processed foods, and with increased per capita calorie availability. The latter effect is supported by lower prices per calorie for processed food items. Supermarket purchases have a positive effect on dietary diversity, but implications for the nutrient adequacy of consumers remain unclear. |
| Keywords: | Nutrition transition, supermarkets, food consumption, malnutrition, overweight, obesity, Food Consumption/Nutrition/Food Safety, Food Security and Poverty, Health Economics and Policy, D12, I14, I15, I32, |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:ags:gagfdp:163212&r=agr |
| By: | Di Cosmo, Valeria; Hyland, Marie; Llop Llop, Maria |
| Abstract: | The Water Framework Directive (WFD) defines common objectives for water resources throughout the European Union (EU). Given this general approach to water preservation and water policy, the objective of this paper is to analyse whether common patterns of water consumption exist within Europe. In particular, our study uses two methods to reveal the reasons behind sectoral water use in all EU countries. The first method is based on an accounting indicator that calculates the water intensity of an economy as the sum of sectoral water intensities. The second method is a subsystem inputâ€output model that divides total water use into different income channels within the production system. The application uses data for the years 2005 and 2009 on water consumption in the production system of the 27 countries of the EU. From our analysis it emerges that EU countries are characterized by very different patterns of water consumption. In particular water consumption by the agriculture sector is extremely high in Central/Eastern Europe, relative to the rest of Europe. In most countries, the water used by the fuel, power and water sector is consumed to satisfy domestic final demand. However, our analysis shows that for some countries exports from this sector are an important driver of water consumption. Focusing on the agricultural sector, the decomposition analysis suggests that water usage in Mediterranean countries is mainly driven by final demand for, and exports of, agricultural products. In Central/Eastern Europe domestic final demand is the main driver of water consumption, but in this region the proportion of water use driven by demand for exports is increasing over time. Given these heterogeneous water consumption patterns, our analysis suggests that Mediterranean and Central/Eastern European countries should adopt specific water policies in order to achieve efficient levels of water consumption in the European Union. JEL codes: N5; C67 Keywords: Water use, Subsystem input–output model; Water intensity, European Union. |
| Keywords: | Aigua -- Consum, Anàlisi d'entrada/sortida, Unió Europea, Països de la, 33 - Economia, |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:urv:wpaper:2072/225298&r=agr |
| By: | Galbreath, Jeremy |
| Abstract: | This is the first known large-scale study in the literature to examine women in the wine industry. By investigating the top wine-producing states in Australia and using a unique database, women across CEO, winemaker, viticulturist, and marketing roles are tracked for the years 2007-2013, resulting in 16,763 firm year observations. By relying on social identity theory, a hypothesis is put forth that women’s representation in top roles is actually less than predicted. The hypothesis is confirmed. A hypothesis is also posited that women in South Australia have higher representation in top roles than women in any other wine-producing state. The hypothesis is partially supported. Finally, this study hypothesizes that were a wine firm has a woman CEO, the likelihood of women representation in the other roles studied increases, which finds support. The results are discussed, along with future research directions and limitations. |
| Keywords: | Australia, gender diversity, social identity, women, wine, Agricultural and Food Policy, Farm Management, |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aawewp:164643&r=agr |
| By: | Daniel Bunting (New South Wales Treasury); Kevin J. Fox (School of Economics, Australian School of Business, the University of New South Wales) |
| Abstract: | In a contribution to the sparse literature on the impacts on consumers of quarantine restrictions, an innovative approach to analysing the effects of these policies on the prices and quality of imported products is proposed. Specifically, various index num- ber decompositions at different aggregation levels are considered for extracting quality changes from changes in the value of an imported good. Consistent with theory, an empirical application to mango imports for Australia reveals an increase in the quality of the imported bundle after the introduction of a new quarantine restriction. We be- lieve this to the first empirical evidence of the quality impact of biosecurity restrictions on imports. |
| Keywords: | Quarantine, trade barriers, index numbers, quality change |
| JEL: | C43 Q18 Q57 F13 D40 |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:swe:wpaper:2014-01&r=agr |
| By: | Ebenstein, Avraham; Hazan, Moshe; Simhon, Avi |
| Abstract: | Prior to 1996, Israelis in collective communities (kibbutzim) shared the costs of raising children equally. This paper examines the impact of privatizing costs of children on the behavior of young couples using universal microdata on kibbutz members. Exploiting variation in the increase in cost sharing across kibbutzim, we estimate that lifetime fertility declined by 0.59 children in the cohorts of affected parents. We also examine the exit decisions of members, and find that couples were most likely to leave the kibbutz if they were either higher income or lower fertility. This pattern is also observed among Israeli emigrants, in which higher educated and lower fertility couples are more likely to leave Israel. |
| Keywords: | Children, Fertility, Israeli Kibbutz, Cost, privatizing costs, Farm Management, Food Security and Poverty, Institutional and Behavioral Economics, |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:huaedp:164526&r=agr |
| By: | Mateo Cordier; Walter Hecq; Rima Hawi; José A. Pérez Agúndez |
| Abstract: | In European environmental water legislation, costs are deemed disproportionate when the total cost of a supplementary environmental measure appreciably exceeds the total benefit generated by the measure (cost-benefit concept). Moreover when costs are lower than benefits, they are deemed disproportionate if polluters cannot afford them (affordability concept). The implication of both disproportionality concepts for ecosystem protection is important given that they condition the possibility for environmental targets to be postponed or made less stringent. But what if this twofold concept of disproportionate cost were replaced by the affordability concept alone? A first argument supporting our suggestion is that cost-benefit analysis encounters difficulties in taking into account the important ecological functions provided by biological structures and processes from which ecosystem services stem. A second argument is that there is no reason for not implementing an environmental legislation democratically decided by representatives if polluters can bear the costs. The problem is that the affordability concept strongly depends on the range of the “Polluter Pays Principle” considered. In order to improve environmental equity and reduce the number of cases where environmental targets are postponed or made less stringent, we develop two extensions of the “Polluter Pays Principle”. The extension method is based on an ecological-economic input-output model and tested on the case of natural marine habitat destroyed by harbour extension in the Seine estuary. The results suggest that disproportionate costs can be transformed into affordable ones when the “Polluter Pays Principle” is extended to economic sectors with indirect responsibilities of second order (“User Pays Principle”) and third order (“User of User Pays Principle”). To ensure that such extension is fair to the ecosystem and to economic sectors, equity issues are considered. Our results suggest that if the method developed in this paper were applied, economic feasibility would no longer be an argument to impede the implementation of policies with ambitious environmental targets offering significant improvements to ecosystem quality. |
| Keywords: | polluter pays principle; ecological-economic model; water legislation; disproportionate cost; cost-benefit analysis; equity |
| Date: | 2014–01–06 |
| URL: | http://d.repec.org/n?u=RePEc:sol:wpaper:2013/153380&r=agr |
| By: | Nellinger, Ludwig |
| Abstract: | William Forster Lloyd's 1833 sketch about poor cattle on the commons and the well-fed animals on the adjacent enclosures published in his 'Two lectures on the checks to population' has hitherto been assessed as one starting point of the economics of renewable resources. In the 20th century the question of the use of common property resources has initially been treated by fisheries economists, at first in unknown publications of Jens Warming in 1911 and 1931, and after a disruption of more than 40 years starting again with the contributions of Gordon and Scott in the 1950s. Important results have been the derivation and presentation of the economic criteria for the open access equilibrium case on the one hand and the private property equilibrium case on the other hand. Garrett Hardin's well known 1968 Sciences article brought a new title and increased awareness to the 'tragedy of the commons' and Elenor Ostrom's 2009 nobel prize in economics finally underlined the importance as well as the diversity of institutional rules to achieve an efficient use of the natural resources - challenging the favored liberal concept of a privatization of scarce resources. Johann Heinrich von Thuenen's contributions on the commons - hidden in an 1831 article about urban agriculture in the journal 'Neue Annalen der Mecklenburgischen Landwirtschaftsgesellschaft' and in an unpublished manuscript - have been totally neglected until now, although he published his article about the core problem of the commons two years earlier than William Forster Lloyd and almost in the clarity of the fisheries economists 80 resp. 120 years later. He not only presented the correct allocation criteria for both property rights scenarios but additionally developed a framework a) how to gain the maximal rent of a resource through an auction system - drafting the first demand table b) how to redistribute the gains to the communal property owners - developing an adequate compensation mechanism c) and finally how to establish this institutional innovation democratically - thereby applying important elements of Elenor Ostrom's Common Property Rights Framework. Due to these contributions Johann Heinrich von Thuenen deserves the title of the founder of the economics of renewable resources. Moreover, in combination with his publications on forestry, land use, soil improvement and agricultural processing industries he should also be seen as the creator of a discipline which got its name but now, the creator of bioeconomics. -- |
| Keywords: | bioeconomics,economics of renewable resources,tragedy of commons,fisheries economics,urban agriculture,factor demand table,auction system |
| JEL: | B13 B15 B16 Q15 Q21 Q22 Q24 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:roswps:135&r=agr |
| By: | Morrison, Andrea; Rabellotti, Roberta |
| Keywords: | wine market, Crop Production/Industries, International Development, International Relations/Trade, |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aawewp:164650&r=agr |
| By: | YATSENKO, Yuri (School of Business, Houston Baptist University); HRITONENKO, Natali (Department of Mathematics, Prairie View A&M University); BRECHET, Thierry (Université catholique de Louvain, CORE and Louvain School of Management, Belgium) |
| Abstract: | The paper combines analytic and numeric tools to investigate a nonlinear optimal control problem relevant to the economics of climate change. The problem describes optimal investments into pollution mitigation and environmental adaptation at a macroeconomic level. The steady-state analysis of this problem focuses on the optimal ratio between adaptation and mitigation. In particular, we analytically prove that the long- term investments into adaptation are profitable only for economies above certain efficiency threshold. Numerical simulation is provided to estimate how the economic efficiency and capital deterioration affect the optimal policy. |
| Keywords: | climate change, environmental adaptation, mitigation, optimal control, steady state analysis |
| Date: | 2014–03–12 |
| URL: | http://d.repec.org/n?u=RePEc:cor:louvco:2014006&r=agr |
| By: | Cassi, Lorenzo; Morrison, Andrea; Rabellotti, Roberta |
| Abstract: | International collaboration among researchers is a far from linear and straightforward process. Scientometric studies provide a good way of understanding why and how international research collaboration occurs and what are its costs and benefits. Our study investigates patterns of international scientific collaboration in a specific field: wine related research. We test a gravity model that accounts for geographical, cultural, commercial, technological, structural and institutional differences among a group of Old World (OW) and New World (NW) producers and consumers. Our findings confirm the problems imposed by geographical and technological distance on international research collaboration. Furthermore, they show that similarity in trade patterns has a positive impact on international scientific collaboration. We also find that international research collaboration is more likely among peers, in other words, among wine producing countries that belong to the same group, e.g. OW producers or newcomers to the wine industry. |
| Keywords: | Proximity, International scientific collaboration, Wine industry, Gravity model, Scientometrics, Emerging countries, Community/Rural/Urban Development, Industrial Organization, |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aawewp:164649&r=agr |
| By: | Sumner La Croix (Department of Economics, University of Hawaii at Manoa) |
| Abstract: | Social scientists argue that post-World War II land reforms in East Asia were critical ingredients in the region’s strong economic growth, but pay little attention to how large-scale land confiscations might affect the security of property rights in each country. A review of the history of large-scale land confiscations in early modern Europe, the United States and Hawai‘i provides a foundation for understanding the nature of modern land reform policies. The key insight is to recognize that East Asian states after World War II were natural state social orders in which new governments confiscate and redistribute property to bolster their coalition’s position and weaken opponents. In East Asia, land confiscations after World War II followed the pattern observed elsewhere, with victors taking and redistributing land from the losers of the war and subsequent civil wars primarily to bolster their newly installed political coalition and to maintain social order. |
| Keywords: | property, revolution, war, land, confiscation, natural state, open-access order, limited-access order |
| JEL: | Q15 N41 N43 N51 N53 |
| Date: | 2014–03 |
| URL: | http://d.repec.org/n?u=RePEc:hai:wpaper:201406&r=agr |
| By: | ,; Diewert, Erwin |
| Abstract: | The paper illustrates how various commonly used index number formulae perform using monthly data on seasonal commodities (seven types of vegetable) that was collected by the Israeli Consumer Price Index program. The paper calculates standard Laspeyres, Paasche and Fisher indexes (fixed base and chained) for the years 1998-2002 and then compares these indexes with the types of index used by statistical agencies that make use of lagged expenditure data instead of current expenditure data. Rolling year annual Mudgett-Stone indexes are also calculated. Month to month Lowe, Young and Geometric Young indexes that make use of lagged annual baskets are calculated and found to have small amounts of substitution bias. The monthly chained Fisher index is found to have substantial downward chain drift bias but the month to month Rolling Year GEKS index performs well. |
| Keywords: | Laspeyres, Paasche, Fisher, Lowe, Young and Mudgett-Stone price indexes, Consumer Price Indexes, seasonal commodities, substitution bias, chain drift. |
| JEL: | C43 C81 E01 E31 |
| Date: | 2014–03–11 |
| URL: | http://d.repec.org/n?u=RePEc:ubc:bricol:erwin_diewert-2014-11&r=agr |