nep-agr New Economics Papers
on Agricultural Economics
Issue of 2015‒02‒16
forty-four papers chosen by

  1. Contributions of livestock holdings to the environment objectives improvement By Chetroiu, Rodica; Iurchevici, Lidia
  2. Managing risk with insurance and savings : experimental evidence for male and female farm managers in the Sahel By Delavallade, Clara; Dizon, Felipe; Hill, Ruth Vargas; Petraud, Jean Paul
  3. Can Adoption of Improved Maize Varieties Help Smallholder Farmers Adapt to Drought? Evidence from Malawi By Holden , Stein; Fischer, Monica
  4. Land Misallocation and Productivity By Diego Restuccia; Raul Santaeulalia-Llopis
  5. Evolution of agricultural cooperatives in Romania in 2014 By Bercu, Florentin
  6. Mitigation costs through alternative crop rotations in agriculture: an assessment for 5 European regions By Benjamin Dequiedt; Vera Eory; Juliette Maire; Cairstiona F.E. Topp; Robert Rees; Peter Zander; Moritz Reckling; Nicole Schlaefke
  7. An economic assessment of GHG mitigation policy options for EU agriculture By Benjamin Van Doorslaer; Peter Witzke; Ingo Huck; Franz Weiss; Thomas Fellmann; Guna Salputra; Torbjörn Jansson; Dusan Drabik; Adrian Leip
  8. Computer model for agricultural holdings-useful tool in the evaluation and implementation of a high performance management By Berevoianu, Rozi Liliana
  9. Improvement of natural grassland as a factor of rural development in lower Danube Region By Jovanovic, Marijana; Arsic, Slavica; Pajcin, Djuro
  10. Agriculture in African Development: A Review of Theories and Strategies By Stefan Dercon; Douglas Gollin
  11. Subsistence and semi subsistence agriculture in Romania By Vlad, Mihaela Cristina
  12. Agricultural Trade Policies and Food Security: Is there a Causal Relationship? By Emiliano Magrini; Pierluigi Montalbano; Silvia Nenci; Luca Salvatici
  13. Computer model for evaluating performance and economic risk at the level of farms of different sizes By Berevoianu, Rozi Liliana
  14. International Agricultural Trade and Negotiations : Coping with a New Landscape By Jean-Christophe Bureau; Sébastien Jean
  15. Review of WIC Food Packages: An Evaluation of White Potatoes in the Cash Value Voucher By Committee to Review WIC Food Packages; Food Nutrition Board; of which Mary Kay Fox is a Committee Member
  16. Environmental Co-benefits and Stacking in Environmental Markets By Jussi Lankoski; Markku Ollikainen; Elizabeth Marshall; Marcel Aillery
  17. Mobile Phone Coverage and Producer Markets: Evidence from West Africa By Marcel Fafchamps; Jenny C. Aker
  18. Are Consumers Concerned about Palm Oil? Evidence from a Lab Experiment By Anne-Célia Disdier; Stéphan Marette; Guy Millet
  19. Modelling Investment Optimization on Smallholder Farms through Multi-criteria Decision Approaches: An Example from Ethiopia By W. Seitz; D. La Torre
  20. Economic efficiency analysis of vegetable production systems during 2011-2014 By Ursu, Ana
  21. The price trend and their impact on profit margin and safety of the protein for feed in Romania By Zugravu, Adrian Gheorghe; Turek Rahoveanu, Maria Magdalena; Moga, Liliana Mihaela; Neculita, Mihaela
  22. Cooperation and Competition in Climate Change Policies: Mitigation and Climate Engineering when Countries are Asymmetric By Vassiliki Manoussi; Anastasios Xepapadeas
  23. Distributional Impact of Commodity Price Shocks: Australia over a Century By Sambit Bhattacharyya; Jeffrey G. Williamson
  24. Economic efficiency in protected vegetable cultivation By Necula, Diana Maria
  25. Trade Policy Coordination and Food Price Volatility By Christophe Gouel
  26. Efficiency of sugar industry in Sudan: Data Envelopment Analysis By onour, Ibrahim
  27. Interpretation of the results of the technical indicators of agriculture-specific economic” By Olteanu, Victor
  28. Measuring the Economic Value of Sustainable River Basin Management: The Full-Preference Rank Method By Phoebe Koundouri; Osiel Gonzalez Davila; Theologos Pantelidis
  29. The impact of the solar energy collecting systems on an individual agricultural household By Turek Rahoveanu, Petruta
  30. Should We Ban Unconventional Oil Extraction to Reduce Global Warming? By Samuel Carrara; Emanuele Massetti
  31. Environmental Art, Prior Knowledge about Climate Change, and Carbon Offsets By Blasch, Julia; Turner, Robert
  32. The ecological control of pests at cabbage using Artistolochia Clematitis plants from spontaneous flora By Pandia, Olimpia; Saracin, Ion; Bogza, Ion
  33. Cooperation and Expectations in Networks Evidence from a Network Public Good Experiment in Rural India By Marcel Fafchamps; A. Stefano Caria
  34. The Impact of EU Accession on Regional Business Cycle Synchronisation and Sector Specialisation By Jürgen Bierbaumer-Polly; Peter Huber; Petr Rozmahel
  35. Quantifying Catastrophic and Climate Impacted Hazards Based on Local Expert Opinions By Tim Keighley; Thomas Longden; Supriya Mathew; Stefan Trück
  36. Empalme IPC sin Alimento ni Energía By Hernán Rubio; Andrés Sansone
  37. The impact of implementation of a modular platform strategy in automobile manufacturing networks. By Jesús F. Lampón; Pablo Cabanelas; Javier González Benito
  38. Understanding Flood Risk Decisionmaking: Implications for Flood Risk Communication Program Design By Kousky, Carolyn; Shabman, Leonard
  39. What works for young people's development? A Case Study of BRAC's Empowerment and Livelihoods for Adolescent Girls programme in Uganda and Tanzania By Nicola Banks
  40. Soil biota as a natural resource for the restoration of degraded chernozems By Senicovscaia, Irina
  41. Implications of Weak Near-term Climate Policies on Long-term Mitigation Pathways By Gunnar Luderer; Christoph Bertram; Katherine Calvin; Enrica De Cian; Elmar Kriegler
  42. Non-Tariff Measures when Alternative Regulatory Tools can be Chosen By Stéphan Marette
  43. Complexity-induced Status Quo Effects in Discrete Choice Experiments for Environmental Valutation By Oehlmann, Malte; Weller, Priska; Meyerhoff, Jürgen
  44. Retail Productivity: Investigating the Influence of Market Size and Regional Hierarchy By Öner, Özge

  1. By: Chetroiu, Rodica; Iurchevici, Lidia
    Abstract: The complexity of the relations between agriculture and environment has created the need to introduce environmental issues into the CAP. The principle of good agricultural practices is essential to understand this relation between agriculture and environment. Environmental measures in agriculture aim at the animal farm activity takes place in accordance with the recommended technologies and livestock waste management in conditions of minimum impact on the environment factors. In this paper, it estimates the annual production of organic fertilizer from farm activity, the quantities of nutrients (nitrogen, phosphorus and potassium) resulting from these, and the areas of agricultural land that can be fertilized with these quantities. The calculations took into account farm modules for the following products: cow's milk, sheep's milk, goat's milk, beef, pork, poultry, and eggs for consumption.
    Keywords: environment, animal husbandry, fertilizers, organic, agricultural holding
    JEL: Q12 Q52 Q57
    Date: 2014–11–20
  2. By: Delavallade, Clara; Dizon, Felipe; Hill, Ruth Vargas; Petraud, Jean Paul
    Abstract: Although there is fast-growing policy interest in offering financial products to help rural households manage risk, the literature is still scant as to which products are the most effective. This paper uses a randomized field experiment in Senegal and Burkina Faso to compare male and female farmers who are offered index-based agricultural insurance with those who are offered a variety of savings instruments. The paper finds that female farm managers were less likely to purchase agricultural insurance and more likely to invest in savings for emergencies, even controlling for access to informal insurance and differences in crop choice. It is hypothesized that this finding results from the fact that, although men and women are equally exposed to yield risk, women face additional sources of lifecycle risk -- particularly health risks associated with fertility and childcare -- that men do not. In essence, the basis risk associated with agricultural insurance products is higher for women. Purchasing insurance increased input spending and use more than savings. Those who purchased more insurance realized higher average yields and were better able to manage food insecurity and shocks. This finding suggests that gender differences in demand for financial products can have an impact on productivity, resilience, and welfare.
    Keywords: Emerging Markets,Hazard Risk Management,Insurance&Risk Mitigation,Rural Poverty Reduction,Financial Intermediation
    Date: 2015–01–01
  3. By: Holden , Stein (Centre for Land Tenure Studies, Norwegian University of Life Sciences); Fischer, Monica (International Maize and Wheat Improvement Center – Ethiopia)
    Abstract: This study used a three-year panel dataset for 350 Malawian farm households to examine the potential for widespread adoption of drought tolerant (DT) maize varieties, a technology that holds considerable promise for helping smallholder farmers in SSA adapt to drought risk. Regression results revealed that DT maize cultivation increased substantially from 2006 to 2012, with the main driver being the Malawi Farm Input Subsidy Program. Some other key factors related to adoption were having recently experienced drought and farmer risk aversion. As far as yield performance, improved maize varieties performed significantly better than local maize during the 2011/12 drought year. However, DT maize did not perform significantly better than other improved maize varieties used in Malawi, which is in contradiction to results from on-station and on-farm trials (e.g., Magorokosho et al. 2010; Setimela et al., 2012). A plausible explanation is that farmers had inadequate training or experience to move towards the yield potentials of the DT maize varieties. Expansion of agricultural extension activities may be required to help farmers achieve the DT maize yield potentials and, subsequently, improve farmer resilience to drought.
    Keywords: Improved maize varieties; drought; drought tolerance; input subsidies; maize yields; agricultural adaptation; risk aversion
    JEL: Q12 Q18
    Date: 2015–02–04
  4. By: Diego Restuccia; Raul Santaeulalia-Llopis
    Abstract: Using detailed household-farm level data from Malawi, we measure real farm total factor productivity (TFP) controlling for a wide array of factor inputs, land quality, and transitory shocks. The distribution of farm TFP has substantial dispersion but factor inputs are roughly evenly spread among farmers. The striking fact is that operated land size and capital are essentially unrelated to farm TFP implying a strong negative effect on agricultural productivity. A reallocation of factors to their efficient use among existing farmers would increase agricultural productivity by a factor of 3.6-fold. We relate factor misallocation to severely restricted land markets as the vast majority of land is without a title and a very small portion of operated land is rented in. The gains from reallocation are 2.6 times larger for farms with no marketed land than for farms that operate marketed land.
    Keywords: misallocation, land, productivity, agriculture, Malawi, micro data.
    JEL: O1 O4
    Date: 2015–02–01
  5. By: Bercu, Florentin
    Abstract: This paper analyses the recent evolution of Romanian modern agricultural cooperatives. The purpose is to present a synthesis of the current study to have a real starting point and lay the foundations according to which appropriate measures may be taken for the organisation of food producers into agricultural cooperatives and for making efficient the Romanian food sector. Although in our country, there is still a reticence about the cooperatives due to the history, especially among those who are over 45 years old the mentality of farmers has started to change, becoming aware of the importance of association. In the agricultural cooperatives in Romania, there have been considerable evolutions in comparison with the financial years 2011 and 2012. The number of agricultural cooperatives has increased in only one year by 26%, the turnover has increased by 59%, reaching lei 292,092,239, and the number of employees has increased by 50%. Unfortunately, in the top of Romanian agricultural cooperatives, there are only agricultural cooperatives and cooperative companies which carry out input purchase and obtained raw material sale services (cereals, industrial crops, livestock, etc.) by the members, unlike the Occidental ones where the collection/storage/processing and common marketing services are predominant due to which they obtain high value added products. The small and average producers in the Romanian food sector must understand that without a reform aiming at making efficient the professional organisations with economic purpose and their merger into efficient agricultural cooperatives, our agriculture shall continue to live from its past glory.
    Keywords: agricultural cooperatives, Romanian agricultural sector, agricultural policies, evolution
    JEL: Q13 R12
    Date: 2014–11–20
  6. By: Benjamin Dequiedt; Vera Eory; Juliette Maire; Cairstiona F.E. Topp; Robert Rees; Peter Zander; Moritz Reckling; Nicole Schlaefke
    Abstract: TTo develop a better understanding of the agriculture sector in the context of climate change and the corresponding issue of cutting greenhouse gas (GHG) emissions, this paper aims at assessing regional mitigation potential and cost due to changing crops rotations at farm-scale in five European regions. For this purpose, we use rotation database from Reckling et al (2014) bringing accurate and exhaustive data about crop management in these areas. First, we complete the database with nitrous-oxide (N2O) emissions calculations and bring an additional hypothesis on precrop effect so as to capture the diversity of knowledge outlined in the agronomic literature. Then, GHG abatement cost is assessed using a bottom-up approach and assuming that farmers are maximizing their profit. In the literature on mitigation cost assessment, the abatement effort is generally considered as marginal and hence is added to previous cumulated efforts of reduction. In contrast, this study analyses rotation switch which implies a complete switch of cropland systems on several years (up to 6 years). Results show that aggregated “win-win” abatement potential in the five European regions could reach a maximum of 35% of the baseline soil N2O emissions of arable areas. The total dry matter production is increasing, while the area under cereal production is decreasing to this level of GHG abatement. Consequently, these findings tend to indicate that variations in agricultural production linked to a mitigation policy, while generating important changes in cropping systems, would not necessarily endanger food security.
    Keywords: NO2 emissions, Fertilization, Crops rotations, Abatement cost curve, Cropping system switch, Five european regions
    Date: 2015
  7. By: Benjamin Van Doorslaer (European Commission – JRC - IPTS); Peter Witzke (EuroCARE GmbH); Ingo Huck (European Commission – JRC - IPTS); Franz Weiss (European Commission – JRC - IES); Thomas Fellmann (European Commission – JRC - IPTS); Guna Salputra (European Commission – JRC - IPTS); Torbjörn Jansson (Swedish University of Agricultural Sciences); Dusan Drabik (European Commission – JRC - IPTS); Adrian Leip (European Commission – JRC - IES)
    Abstract: The report presents an overview of the historical and projected development of agricultural GHG emissions in the EU. The major objective of the report is to present the improvements made in the CAPRI modelling system with respect to GHG emission accounting and especially regarding the implementation of endogenous technological mitigation options. Furthermore, the CAPRI model was applied to provide a quantitative assessment of illustrative GHG mitigation policy options in the agricultural sector, and their production and economic implications.
    Keywords: greenhouse gas emissions, agriculture, mitigation policy, climate policy, EU, CAPRI model, agricultural markets, emission leakage
    JEL: Q18 Q58 Q02 Q11
    Date: 2015–01
  8. By: Berevoianu, Rozi Liliana
    Abstract: Development continuous information models in the agricultural sector, as the data collection methods and modern and efficient processing of the system of economic and financial indicators and assessing risks in agricultural holdings may have a positive impact on increasing the competitiveness of production processes, is a viable solution for streamlining activities in agriculture. From this point of view, at the level of an agricultural holding, the data model can become a real component in the process of management. The main aim is to improve the decision-making process from the farm and the provision of information management systems necessary to adapt to a society directed toward knowledge and access to information.
    Keywords: computer model, agricultural management, economic and financial indicators, economic risk
    JEL: D80 L86 O12 Q10 Q12
    Date: 2014–11–20
  9. By: Jovanovic, Marijana; Arsic, Slavica; Pajcin, Djuro
    Abstract: The aim of this paper is presenting of importance of natural grasslands (meadows and pastures) in rural development of Lower Danube region. Production of efficient quantities of food for domestic animals and preservation of environment is strategically important for economic prosperity and animation of local population, as an aim to stay in rural areas and to develop their agricultural productivity. Lower Danube region have possibilities for development of agricultural production, because it possessed enough quantity of natural resources with highest quality. The territory of Lower Danube region make following municipalities: Golubac, Majdanpek, Negotin, Kladovo and Kučevo. In this municipalities land under meadows and pastures is on the second place, just behind arable land. Due to the presence of NP Đerdap on the territory of Lower Danube region is concluded that there are no obstacles for rural development, from the aspect of natural resources. But the following problems: fragmentation of land, the extensiveness of use, inadequate intake of organic matter and degradation processes caused by the action of man, affected the quality of natural grassland (meadows and pasture) and the production of forage crops in general. Because of that one of the most important tasks of rural development of these municipalities is proper using of grassland, which going to enabled development of this kind of agricultural production and protection of important plant species.
    Keywords: pastures, meadows, rural development, Lower Danube Region
    JEL: Q15 Q57 R11
    Date: 2014–11–20
  10. By: Stefan Dercon; Douglas Gollin
    Abstract: Agriculture is the largest sector in most sub-Saharan economies in terms of employment, and it plays an important role in supplying food and export earnings.  Rural poverty rates remain high, and labor productivity is strikingly low.  This paper asks how these factors shape the role of agriculture in African development strategies.  Is agricultural growth a prerequisite for growth in other sectors?  Or will urbanization and non-agricultural export markets ultimately be the forces that pull the rural economy into higher productivity?  We argue that agricultural development strategies will vary widely because of heterogeneity across and within countries.
    Keywords: economic growth, structural transformation, sub-Saharan Africa, rural development
    JEL: O10 O13 O55 O1 O18
    Date: 2014–06–04
  11. By: Vlad, Mihaela Cristina
    Abstract: The paper aims to analyze the main question that arises in the context of current agricultural policies: are households farms really? Viewed from the perspective of sustainable development of rural areas, the answer becomes very important, especially given that the actual short comings rural employment opportunities and business development. Research is needed, especially given the new Common Agricultural Policy for the period 2014-2020 still provides annual grants (between 500-1000 euros), especially given that you want to implement a policy of restructuring. In order to eliminate the sector subsistence farmers producing for own consumption only occasionally provides a scheme for granting annuities 2020 for owners who will give lands on lease or be sold to commercial farms and co financing up to 15,000 euros for starting a business.
    Keywords: individual households, subsidies, sustainability
    JEL: Q01 Q12 R12 R52
    Date: 2014–11–20
  12. By: Emiliano Magrini; Pierluigi Montalbano; Silvia Nenci; Luca Salvatici
    Abstract: The aim of this paper is to assess the causal impact of trade policy distortions on food security.The added value of this work is twofold:i)its use of an on-parametric matching technique with continuous treatment,namely the Generalised Propensity Score(GPS)to address the self selection bias;ii)its analys is of heterogeneity in treatment(by commodities)as well as inoutcome(i.e.different dimensions of food security).The results of our estimates clearly show that trade policy distortions are,overall,significantly correlated with the various dimensions of food security analysed. Both discrimination against agriculture and 'excessive' support lead to poor performances in all dimensions of foodsecurity (availability,access,utilisation and stability).
    JEL: C21 F14 Q17
  13. By: Berevoianu, Rozi Liliana
    Abstract: Computer Model for performance evaluation and economic risk is a model complex based on appropriate methodologies with specific indicators, necessary to administer the agricultural farm, management, efficient and increase its productivity. System of indicators is intended as a centralized source of information necessary to improve economic performance and efficient use of production factors by which to ensure the development of commercial farms, efficient use of input, raising yields and improve economic performance.
    Keywords: computer model, agricultural management, economic and financial indicators, economic risk
    JEL: D24 D81 L86 Q12 R0 R00
    Date: 2014–11–20
  14. By: Jean-Christophe Bureau; Sébastien Jean
    Abstract: Trade is a key element in food security but international cooperation is necessary for trade to help coping with supply shocks, to spread variations in crop yield and to dampen price volatility. While multilateral trade agreements have provided the foundations for a rule-based system, multilateralism has stalled. New economic and political conditions, in particular the new weight of emerging countries, have complicated the negotiations of a Doha agreement under the WTO. Agriculture plays a special role in the global negotiating game. Developed countries have given up many of their bargaining chips in the previous rounds of negotiation and concessions in agriculture are not sufficient for extracting concessions from emerging countries on services, procurement, and intellectual property that would make a multilateral agreement possible. Non-cooperative policies such as export restrictions are gaining momentum and distorting support is on the rise in emerging countries. With the development of bilateral agreements, there is a genuine risk of a more fragmented trading system that is unable to help coping with food insecurity. A series of research issues are listed that may help to revitalize the Doha negotiation agenda.
    JEL: Q18 O24
  15. By: Committee to Review WIC Food Packages; Food Nutrition Board; of which Mary Kay Fox is a Committee Member
    Abstract: At the request of the U.S. Department of Agriculture, an expert Institute of Medicine (IOM) committee is undertaking a comprehensive review of the food packages used in the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) to bring the program into alignment with current dietary guidelines. In the first of three reports to result from this review, the IOM committee evaluates the 2009 regulation that excluded white potatoes from purchase with the WIC cash value voucher (CVV) and considers whether white potatoes should henceforth be allowed as a WIC-eligible vegetable in the CVV.
    Keywords: WIC Food Packages, White Potatoes, Cash Value Voucher, Nutrition, IOM Committee Report
    JEL: I0 I1
    Date: 2015–02–03
  16. By: Jussi Lankoski; Markku Ollikainen; Elizabeth Marshall; Marcel Aillery
    Abstract: This paper investigates farmers’ incentives to participate voluntarily in carbon offset markets when environmental credit stacking is allowed, that is, farmers can stack water quality credits with carbon credits. The implications of stacking on additionality of environmental services in interlinked markets, market participation rates, and market equilibrium prices are analysed by developing a conceptual framework of environmental credit stacking, which is applied with data estimates for the US Corn Belt. Analysis shows that credit stacking increases farmers’ participation in carbon offset markets, and that such increased participation provides additionality in environmental service provision. It is further shown that ecosystem markets are interlinked so that credit price changes in one market will shift credit supply in another market, thus affecting equilibrium prices. Empirical application of the framework shows that provision of CO2-eq offsets through reductions of nitrogen application or through the establishment of green set-asides is not profitable without water quality credits. A conversion from conventional tillage and reduced tillage to no-till is profitable in some cases, although current low carbon offset prices and transaction costs have a significant negative impact on the number of participating parcels. When farmers are allowed to stack water quality credits the profitability of carbon sequestration practices increases. Reduced nitrogen application levels becomes a profitable option and 21% of field parcels - representing 4.6 million acres- participate in the market with water quality credit prices at base levels of USD 3/lb for N and USD 4/lb for P. The establishment of green set-aside and streamside buffer strips becomes profitable in the lower productivity and highly erodible lands with base prices of nutrient credits. If water quality trading markets are small then high participation rates among farmers may result in an oversupply of nutrient credits and as a consequence equilibrium credit prices and farmers’ credit revenue would decrease.
    Keywords: transaction costs, interlinked environmental markets, additionality, carbon offset, nutrient credit
    JEL: Q53 Q54 Q57 Q58
    Date: 2015–02–06
  17. By: Marcel Fafchamps; Jenny C. Aker
    Abstract: Expansion in mobile phone coverage has improved access to information throughout the developing world, particularly within sub-Saharan Africa.  The existing evidence suggests that information technology has improved market efficiency and reduced consumer prices for certain commodities.  There are fewer studies assessing the impact of the technology on producers.  Using market-level data we estimate the impact of mobile phone coverage on producer prices in Niger.  We find that mobile phone coverage reduced the spatial dispersion of producer prices by 6 pecent for a semi-perishable commodity, cowpea.  These effects are strongest for remote markets and lowest at harvest time.  Mobile telephony, however, has no effect on price dispersion for millet and sorghum, two storable crops.  There is also no impact on the average producer price, but mobile phone coverage is associated with a reduction in the intra-annual price risk, primarily for cowpeas.  These findings are confirmed by data from a farmer-level survey: we find that farmers owning mobile phones obtain more price information but do not engage more in spatial arbitrage and hence do not receive higher prices - except for peanuts.  The additional evidence presented here helps understand how mobile phone coverage affects agricultural market efficiency in developing countries.  It suggests that the impact differs across agents - depending on whether they use the information for arbitrage or not - and across crops - depending on whether intertemporarl arbitrage is possible or not.
    Keywords: Africa, Information, Information Technology, Market Performance, Search Costs, Niger
    JEL: O1 O3 Q13
    Date: 2013–05–31
  18. By: Anne-Célia Disdier; Stéphan Marette; Guy Millet
    Abstract: A lab experiment evaluates the consequences of the palm oil controversy on consumers’ willingness to pay (WTP) for food products. Palm oil production induces environmental damages, and its consumption presents a health risk. However, the production of alternative oils raises land use issues. In the experiment, successive messages emphasizing the controversial nature of palm oil and palm oil-free products are delivered to participants. Information has a significant influence on WTP when it underlines the negative impact of the related product. This effect is stronger for the palm oil product than for the palm oil-free product. The experiment also compares the welfare effects of two regulatory instruments, namely a consumer information campaign versus a per-unit tax. Because of the controversial nature of both products, the information campaign improves welfare with a much larger impact than the tax.
    JEL: H23
  19. By: W. Seitz; D. La Torre
    Abstract: We use data from Ethiopia Rural Household Survey and the Ethiopian Central Statistics Agency to demonstrate a set of techniques for estimating optimal investment allocation in smallholder farming.  The approaches treat farming tasks, constraints, and investments as a portfolio problem, characterized by multiple competing objectives.  We formulate several versions of the multi-objective problem and solve them in three alternative ways; 1) using standard Markowitz portfolio optimization, 2) using a weighted goal programmimg model, and 3)  a multi-horizon mean variance goal programming model, estimating all model parameters using real data.  The main benefit of the goal programming formulation is the possibiity to simplify in a single criterion problem complex situations in which the Decision Make (MD) faces a trade-off beteen two or more objectives.  We discuss the importance of portfolio allocations for smallholder farmers in minimizing risk and increasing return, and discuss how these approaches provide a framework that can be extended to practical applications in smallholder farming.
    Date: 2014–01–14
  20. By: Ursu, Ana
    Abstract: Economic efficiency plays an important role in the foundation and farm level decisions, constituting a basic criterion in assessing the level of economic activity and development prospects. The study aimed to analyze the economic efficiency of crop production systems, measured through indicators that contribute to an overall picture of the actual conditions of economic efficiency for the analyzed period. For this study were quantified following indicators: income from operations, operating costs, labor productivity and rate of return on different types of farms of different sizes. The analysis concluded that indicators production year 2013-2014 has showed a lower level of economic efficiency compared with 2011-2012 production year; comparison of the two production systems that irrigated production system provides a rate of return of about 9-10% higher than non-irrigated system. Comparing labor productivity in terms of value (lei / Man-hour) the types of farms of different sizes that hourly labor productivity increases with economic size of holding and decreases as the number of man-hours to 1000 lei incomes increase.
    Keywords: economic efficiency, production systems, labor productivity, profitability
    JEL: D24 O44 P49 P52 Q12
    Date: 2014–11–20
  21. By: Zugravu, Adrian Gheorghe; Turek Rahoveanu, Maria Magdalena; Moga, Liliana Mihaela; Neculita, Mihaela
    Abstract: Because modern sophistication in the trade, transport, handling, blending and distribution system that makes the feed to reach farmers in the formula "just in time" protein sources are now in difficulty. The paper follows two main objectives: to understand farmers’ perception of safety and quality of protein for stock breeding and to identify communication levers in order to improve the protein self-sufficiency for animal production. This paper conducted a questionnaire survey of Romanian farmers’ perception toward safety and quality of protein for feed. The empirical study with brands indicated that farmers are different awareness to safety and quality of protein for feed.
    Keywords: safety perception, feed quality, protein self-sufficiency
    JEL: D19 Q19 Q20
    Date: 2014–11–20
  22. By: Vassiliki Manoussi (Athens University of Economics and Business, Department of International and European Economic Studies); Anastasios Xepapadeas (Athens University of Economics and Business, Department of International and European Economic Studies)
    Abstract: We study a dynamic game of climate policy design in terms of emissions and solar radiation management (SRM) involving two heterogeneous regions or countries. Countries emit greenhouse gasses (GHGs), and can block incoming radiation by unilateral SRM activities, thus reducing global temperature. Heterogeneity is modelled in terms of the social cost of SRM, the environmental damages due to global warming, the productivity of emissions in terms of generating private benefits, the rate of impatience, and the private cost of geoengineering. We determine the impact of asymmetry on mitigation and SRM activities, concentration of GHGs, and global temperature, and we examine whether a trade-off actually emerges between mitigation and SRM. Our results could provide some insights into a currently emerging debate regarding mitigation and SRM methods to control climate change, especially since asymmetries seem to play an important role in affecting incentives for cooperation or unilateral actions.
    Keywords: Climate Change, Mitigation, Solar Radiation Management, Cooperation, Differential Game, Asymmetry, Feedback Nash Equilibrium
    JEL: Q53 Q54
    Date: 2014–12
  23. By: Sambit Bhattacharyya; Jeffrey G. Williamson
    Abstract: This paper studies the distributional impact of commodity price shocks over both the short and very long run.  Using a GARCH model, we find that Australia experienced more volatility than many commodity exporting developing countries over the periods 1865-1940 and 1960-2007.  A single equation error correction model suggests that commodity price shocks increase the income share of the top 1, 0.05, and 0.01 percents in the short run.  The very top end of the income distribution benefits from commodity booms disproportionately more than ther est of the society.  The short run effect is mainly driven by wool and mining and not agricultural commodities.  A sustained increase in the price of renewables (wool ) reduces inequality whereas the same for non-renewable resources (minerals) increases inequality.  We expect that the initial distribution of land and mineral resources explains the asymmetric result.
    Keywords: commodity price shocks, commodity exporters, top incomes, inequality
    JEL: F14 F43 N17 O13
    Date: 2013–07–23
  24. By: Necula, Diana Maria
    Abstract: In this study, it is considered setting up a vegetable farm in protected areas and the economic efficiency of the proposed vegetable crops . The investment itself involves setting up a vegetable farm in protected areas, whose capacity will be of 1,000 square meters. The proposed vegetable varieties for cultivation are: tomatoes, cucumbers and spinach . The solarium will consist of two modules with metal structure covered with plastic wrap in dual inflatable fitted with drip irrigation and fertigation. For water supply is provided drilled and purchase of equipment needed in the production flow: tiller, drill, plug, etc. In the analysis performed we estimated two hypothetical situations: where basic investment expenditures (106,578 lei) are covered by the loan to the bank and the situation in which the investment is financed 40% by way of grant and 60% loan form the bank. Are calculated for each of these two cases the basic investment expenses, receipts and payments for a period of 5 years at the date of investment.
    Keywords: vegetable farm, investment, payments and receipts
    JEL: D24 O13 Q12
    Date: 2014–11–20
  25. By: Christophe Gouel
    Abstract: Many countries adjust their trade policies counter cyclically with foodprices,to the extent that the use by numerous foodexporters of export restrictions has occasionally threatened the foodsecurity of food importing countries.These tradepolicies are inconsistent with the terms-of-trade motivation often retained to characterize the pay-off frontier of self-enforcing trade agreements,as they can worsen the terms of trade of the countries that apply them.This paper analyzes trade policy coordination when trade policies are driven by terms-of-trade effects and a desire to reduce domestic food price volatility. This frame work implies that importing and exporting countries have incentives to deviate from cooperation at different periods:the latter when prices are high and the former when prices are low. Since staplefood prices tend to have asymmetric distributions,with more prices below than above the mean but with occasional spikes,a self-enforcing agreement generates asymmetric outcomes.Without cooperation,an importing country uses more frequently its trade policy because of the concentration of prices below the mean,but an exporting country has a greater incentive to deviate from a cooperative trade policy because positive deviations from the mean price are larger than negative ones.Thus,the asymmetry of the distribution of commodity prices can make it more difficult to discipline export taxes than tariffs in trade agreements.
    JEL: F13 Q17 Q18
  26. By: onour, Ibrahim
    Abstract: The primary aim of this paper to assess the output loss due to inefficient management of Sugar industry in Sudan. An industrial firm is scale inefficient if there is under utilization of production inputs. In this paper we employed nonparametric Data Envelopment Analysis (DEA) to estimate scale efficiency of the major sugar producers in Sudan: Kenana sugar company and Sudan sugar company (SSC) manufacturers: Sennar, Assalaya, New Halfa, and Al-Genied. The finding of the paper indicate Kenana and Al-Genied manufacturers exhibit constant return to scale, whereas the other three sugar manufacturers of SSC: Sennar, Assalaya, and New Halfa exhibit increasing return-to-scale. Increasing return to scale implies inefficient utilization of available input mix. The average output loss due to scale inefficiency for SSC during the periods 2009, 2010, 2011, and 2012 are respectively 6%, 12%, 14%, and 16% of the benchmark company output level of Kenana. This result implies that for SSC company to increase its efficiency level, needs to manage cane production in Assalya, Sennar, and New Halfa projects on commercial basis, as in Al-Genied, by renting the agriculture land with its infrastructure to private firms to produce sugar cane on commercial basis.
    Keywords: Sugar efficiency, DEA, Sudan
    JEL: F3 M2
    Date: 2015–02–03
  27. By: Olteanu, Victor
    Abstract: The passage of a technological process is carried out only in circumstances where the process is efficient in economic terms. Assessment of technological processes can be done by means of indicators which can be: economic, technical, economic and technical. Technical-economic indicators used in assessing technological processes are scalars with or without dimensions, which characterizes a substance, a technical device, a system, or a technological process both technically and economically.
    Keywords: system technology, agricultural establishments, financial statements
    JEL: O13 P49 P52 Q1
    Date: 2014–11–20
  28. By: Phoebe Koundouri; Osiel Gonzalez Davila; Theologos Pantelidis
    Abstract: This study exploits the data from a full-preference ranking Choice Experiment (CE) designed to investigate how respondents evaluate a set of proposed improvements in the Asopos water catchment in Greece. These improvements are following the prescriptions of the European Union Water Framework Directive (2000). We first estimate a rank-ordered logistic regression based on the full set of choices by respondents to calculate the willingness to pay (WTP) of respondents for each one of the three attributes considered in the CE (that is, environmental conditions, impact on the local economy and changes in the potential uses of water). The model is initially estimated for the full sample and then re-estimated twice for two sub-samples: the one includes only the residents of Athens and the other includes only the residents of Asopos. Afterwards, we examine the effect of various demographic and socio-economic factors (such as income, gender, age, employment and education) on the estimates of our model in an attempt to reveal any differences among respondents with different characteristics. Thus, our analysis simultaneously provides a robustness check on previous findings in the literature and additional information about how various demographic and socio-economic characteristics affect the evaluation of the selected attributes.
    Keywords: Choice experiment, Full-preference ranking, Logistic regression, Asopos River Basin, Environmental degradation, Water quality and quantity; Random utility maximization; Logit probabilities; Water Framework Directive; Residency-specific use and non-use val
    JEL: Q25 Q51 Q53
    Date: 2015–02–05
  29. By: Turek Rahoveanu, Petruta
    Abstract: Using solar energy through photovoltaic systems implementation in an agricultural household leads to the increasing of it’s efficiency, to optimizing energy balance thus implying the decreasing of the primary energy costs. The solar energy refers to a renewable energy source that is produced directly by light and solar radiation. It can be used to generate electricity through solar cells (photovoltaic); to generate electricity through thermal power plants; to generate electricity through solar towers,etc. The introduction and development of new technologies and processes through the use of energy from renewable sources leads to production costs reduction and implicitly to the increase of economic profitability of the agricultural holding.
    Keywords: renewable energy, solar energy, photovoltaic panels
    JEL: Q16 Q29 Q40 Q42
    Date: 2014–11–20
  30. By: Samuel Carrara (FEEM and CMCC); Emanuele Massetti (Georgia Institute of Technology, CESIfo and FEEM)
    Abstract: The extraction and processing of unconventional oil is more energy intensive and has larger negative environmental impacts than the extraction of conventional oil. The European Union (EU) estimates that oil sands lead to 22% more emissions than conventional oil. The EU is very concerned by the potential climate and environmental impacts and has considered introducing a tax on imported unconventional oil in order to discourage its production. This study shows that a global ban on the use of unconventional oil substantially reduces global carbon dioxide emissions, but the policy is not efficient. A unilateral ban of the EU on unconventional oil has no climate benefits and it is expensive for Europe.
    Keywords: Unconventional Oil, Climate Mitigation, Energy Policy, European Union
    JEL: Q37 Q42 Q48 Q56
    Date: 2014–12
  31. By: Blasch, Julia (Department of Economics, Colgate University); Turner, Robert (Department of Economics, Colgate University)
    Abstract: Using a contingent choice survey of US citizens, we investigate the influence of environmental art on individual willingness to purchase voluntary carbon offsets. In a split-sample experiment, we compare the stated preferences of survey respondents in two different treatment groups to the preferences of a control group. One treatment group is shown photographs that illustrate the impacts of climate change; the other is shown animated images that illustrate wind speeds and patterns for extreme weather events. While individuals seeing the photographs show a higher willingness to purchase voluntary offset than the control group, respondents seeing the animated images seem less willing to buy offsets. This result remains stable when accounting for preference heterogeneity related to prior knowledge about climate change issues. We hypothesize that the differential impacts of the two kinds of artistic images are due to a combination of factors influencing individual choices: emotional affect, cognitive interest, and preferences for the prevention of specific climate change impacts as well as, more generally, internalized and social norms for the mitigation of climate change.
    Keywords: environmental art, climate change, carbon offsetting, knowledge, norms, discrete choice experiment
    JEL: Q5 Z1
    Date: 2015–01–01
  32. By: Pandia, Olimpia; Saracin, Ion; Bogza, Ion
    Abstract: In the modern society of today, consuming natural products is not a hobby anymore and it is a necessity for us regarding health. The first factors of disease are owed to unhealthy food and we cannot have a healthy food and a healthy organism if we do not remove from our food system the negative effects possessed by unhealthy food, even if it is not the cheapest option. From the products consumed by people, a very important role for producing the necessary energy for the organism is given to vegetables. Thus, we aimed the study of using decoctions obtained from the Aristolochia Clematitis plants which can be found in the spontaneous flora of Romania, unpretentious regarding the soil and which can combat one of the most frequent pests met in cabbage cultures: cabbage aphis (Brevicoryne brassicae L.), cabbage fly (Delia brassicae), cabbage butterfly (Pieris brassicae). The elimination of contact insecticides and chemical substances and obtaining healthier products are several purposes by using these methods. The obtained decoctions were made by combining three types of plant mixes in order to identify which component part is richer in aristolochic acid and which decoction gives better results for the combat of insects and to make a better comparison between them related to obtained results. There were taken soil samples from the six cultivars between planting cabbage seedlings for a better documentation. After the observations made on the whole period, the best results were obtained at cultivars 1, 3, 5, 6 where cabbage plants were treated with decoction obtained from the roots and where the whole plant combined with soap solution was used, followed by cultivars 2 and 4 where there was not used Aristolochia Clematitis plants. Because the results obtained were satisfied without using contact insecticides, a larger investigation of these decoctions follows using only Aristolochia Clematitis plants or in combinations with other plants which have very good results for ecological control of diseases and pests from vegetable cultures.
    Keywords: physiological balance, ecological products, decoction, aristolochic acid
    JEL: Q16 Q20 Q57
    Date: 2014–11–20
  33. By: Marcel Fafchamps; A. Stefano Caria
    Abstract: We play a one-shot public good game in rural India between farmers connected to an exogenous star network.  Contributions by the centre of the star reach more players and have a larger impact on aggregate payoffs than contributions by the spoke players.  Yet, we find that the centre player contributes just as much as the average of the spokes.  We elicit expectations about the decisions of the centre player and, in randomly selected sessions, we disclose the average expectation of the farmers in the network.  Farmers match the disclosed values frequently and do so more often when the monetary cost of making a contribution is reduced.  However, disclosure is not associated with higher contributions.  Our results support the predictions of a model of other-regarding preferences where players care about the expectations of others.  This model is helpful to understand barriers to improvement in pro-social behaviour when groups expect low pro-sociality.
    Date: 2014–12–06
  34. By: Jürgen Bierbaumer-Polly (WIFO); Peter Huber (WIFO); Petr Rozmahel
    Abstract: According to difference-in-difference estimates business cycle synchronisation and similarity in sector structures between acceding and pre-existing regions reduced after Eastern Enlargement. Results for Northern enlargement are more ambiguous. In both enlargements, however, region pairs affected by enlargement with highly synchronised business cycles before enlargement experienced smaller increases in business cycle synchronisation and weaker reductions of structural differences relative to similar unaffected region pairs than region pairs with less synchronised business cycles. Similarly, affected regions that were more similar in terms of sector structure before enlargement experienced larger reductions in structural differences and business cycle synchronisation than similar unaffected region pairs.
    Keywords: business cycle correlation, sector specialisation, EU enlargement, difference-in-difference
    Date: 2015–01–29
  35. By: Tim Keighley (Faculty of Business and Economics, Macquarie University); Thomas Longden (Faculty of Business and Economics, Macquarie University); Supriya Mathew (Northern Institute, Charles Darwin University); Stefan Trück (Faculty of Business and Economics, Macquarie University)
    Abstract: The analysis of catastrophic and climate impacted hazards is a challenging but important exercise, as the occurrence of such events is usually associated with high damage and uncertainty. Often, at the local level, there is a lack of information on rare extreme events, such that available data is not sufficient to fit a distribution and derive parameter values for the frequency and severity distributions. This paper discusses local assessments of extreme events and examines the potential of using expert opinions in order to obtain values for the distribution parameters. In particular, we illustrate a simple approach, where a local expert is required to only specify two percentiles of the loss distribution in order to provide an estimate for the severity distribution of climate impacted hazards. In our approach, we focus on so-called heavy-tailed distributions for the severity, such as the Lognormal, Weibull and Burr XII distribution. These distributions are widely used to fit data from catastrophic events and can also represent extreme losses or the so-called tail of the distribution. An illustration of the method is provided utilising an example that quantifies the risk of bushfires in a local area in Northern Sydney.
    Keywords: Catastrophic Risks, Climate Impacted Hazards, Expert Opinions, Local Level Decision Making, Loss Distribution Approach
    JEL: Q5 Q54 Q58
    Date: 2014–11
  36. By: Hernán Rubio; Andrés Sansone
    Abstract: In 2014, the National Statistical Institute of Chile (INE) presented the Consumer Price Index (CPI) Methodology Manual with annual base 2013=100. In order to provide to the public extended series, consistent with the new series, this paper presents the results of a statistical linking exercise from April 1989 to January 2014 of three series: CPI excluding food and energy (IPCSAE), IPCSAE Goods and IPCSAE Services. The methodological details, the standardization of products in baskets with different base year and the limitations are described.
    Date: 2015–01
  37. By: Jesús F. Lampón; Pablo Cabanelas; Javier González Benito
    Abstract: This paper explores the impact of the implementation of modular platforms, to replace the standard platforms used to date, on the strategic outputs of automobile manufacturing networks. Analysis of the production network of manufacturers in Europe shows that the use of modular architecture improves the coordination of manufacturing networks by increasing manufacturing mobility and thriftiness ability. The changes resulting from this new modular strategy also allow for reorganisation of manufacturing capacity and the partial elimination of current overcapacity. From the point of view of production systems, the adaptation of processes and facilities in manufacturing plants to this new architecture should aim to increase flexibility by integrating production around a single platform, allowing for different dimensions and a large number of models in a single plant.
    Keywords: Modular platforms, manufacturing networks, operational flexibility, economies of scale, economies of scope, automobile sector.
    JEL: L62 L23 L25
    Date: 2015–02
  38. By: Kousky, Carolyn (Resources for the Future); Shabman, Leonard (Resources for the Future)
    Abstract: Floodplain land-use decisions are made by individuals in households, businesses, and local governments. Whatever the venue, the decisions made are the outcome of multiple interacting influences, with one being consideration of flood risk. The goal of a flood risk communication program may be to improve the understanding of flood risk among those making decisions. An alternative goal may be to change the decisions made. Understanding how individuals make decisions and the mental strategies they employ, as well as understanding the larger context of decisionmaking, will contribute to better defining the goals of a flood risk communication program and then designing a program that will secure those goals.
    Keywords: flood risk, decisionmaking, risk communication, biases and heuristics
    Date: 2015–02–05
  39. By: Nicola Banks
    Abstract: Abstract On the record of poverty and inequality in India over the last thirty or so years, the general scholarly view seems to be that there have been substantial declines in money-metric poverty, that there has been no significant over-time increase in inequality, and that the growth in per capita consumption expenditure has not been marked by any discernible evidence of non-inclusiveness. It is argued in this paper that inferences of this nature are largely a consequence of the particular approaches to the measurement of poverty, inequality and inclusiveness that have been generally adopted in the literature. Alternative, and arguably more plausible, protocols of measurement suggest a picture of money-metric deprivation and disparity in India which shares little in common with the product of received wisdom on the subject.
    Date: 2014
  40. By: Senicovscaia, Irina
    Abstract: The role of biota as a natural resource for the restoration of degraded chernozems of the Republic of Moldova is under discussion till nowadays. The status of biota of old-arable chernozems in conditions of the green manure applications has been evaluated statistically. Two experimental sites located in the central and southern zone of the Republic of Moldova have been tested by soil biological indicators during 2010-2012. The application of vetch as a green manure had created conditions for the improvement of the biota’s vital activity in chernozems which had been degraded as a result of a long-term arable use. The number of invertebrates increased from 48.1-55.0 to 71.6 - 78.0 ex m-2, the number of Lumbricidae family – from 25.6-38.0 to 43.3-68.0 ex m-2. The effect of green manure was manifested in the increase of share of Lumbricidae family in the total number of invertebrates by 12.1-20.8 %. The microbial biomass content in the arable layer of soils rose up in average by 1.4-1.5 times. The humification processes intensified as a result of the interaction between the fresh organic matter and the soil biota. Biological parameters did not reach the level of soils under natural vegetation. Management with the green manuring for the biota’s restoration of degraded soils and for the improvement of soil quality and environment has been recommended.
    Keywords: soil biota, green manure, degraded chernozem
    JEL: O13 O44 O50 Q24
    Date: 2014–11–20
  41. By: Gunnar Luderer (Potsdam Institute for Climate Impact Research, Potsdam, Germany); Christoph Bertram (Potsdam Institute for Climate Impact Research, Potsdam, Germany); Katherine Calvin (PNNL, USA); Enrica De Cian (Fondazione Eni Enrico Mattei (FEEM), Italy); Elmar Kriegler (Potsdam Institute for Climate Impact Research, Potsdam, Germany)
    Abstract: While the international community has agreed on the long-term target of limiting global warming to no more than 2°C above pre-industrial levels, only a few concrete climate policies and measures to reduce greenhouse gas (GHG) emissions have been implemented. We use a set of three global integrated assessment models to analyze the implications of current climate policies on long-term mitigation targets. We define a weak-policy baseline scenario, which extrapolates the current policy environment by assuming that the global climate regime remains fragmented and that emission reduction efforts remain unambitious in most of the world’s regions. These scenarios clearly fall short of limiting warming to 2°C. We investigate the cost and achievability of the stabilization of atmospheric GHG concentrations at 450 ppm CO2e by 2100, when countries follow the weak policy pathway until 2020 or 2030 before pursuing the long-term mitigation target with global cooperative action. We find that after a deferral of ambitious action the 450 ppm CO2e is only achievable with a radical up-scaling of efforts after target adoption. This has severe effects on trans-formation pathways and exacerbates the challenges of climate stabilization, in particular for a delay of cooperative action until 2030. Specifically, reaching the target with weak near-term action implies (a) faster and more aggressive transformations of energy systems in the medium term, (b) more stranded investments in fossil-based capacities, (c) higher long-term mitigation costs and carbon prices and (d) stronger transitional economic impacts, rendering the political feasibility of such pathways questionable.
    Keywords: Climate Change, Mitigation
    JEL: Q5 Q58
    Date: 2015–01
  42. By: Stéphan Marette
    Abstract: This paper analyzes whether or not different non-tariff measures (NTM) like a standard or a mandatory label can be considered as protectionist in presence of market imperfections. From a welfare-based approach, protectionism occurs when the instrument maximizing domestic welfare is different from the alternative instrument maximizing international welfare inclusive of foreign profits. A framework taking into account different tools shows the complexity for characterizing protectionism related to different NTM. When the standard impacts variable costs, the mandatory label can be protectionist. When the standard impacts sunk costs, the standard can be protectionist. The framework is also useful for empirically characterizing the impact of NTM related to a specific product. An application to shrimp trade illustrates the feasibility of the welfare measure, for an ex ante evaluation of possible environmental regulations that could be implemented in the future. This application confirms that the tool maximizing domestic welfare does not systematically correspond to the tool maximizing international welfare.
    JEL: F13 D61 Q17
  43. By: Oehlmann, Malte; Weller, Priska; Meyerhoff, Jürgen
    Abstract: In this paper we investigate the influence of choice task complexity on the propensity to choose the status quo (SQ) alternative in discrete choice experiments. Task complexity is characterized in terms of the design dimensionality systematically varying the number of choice sets, alternatives, attributes and levels as well as the level range using 16 split samples. Moreover, we use the number of level changes across alternatives and entropy to capture further complexity effects. First, we show that the frequency of choosing the SQ and the number of those respondents who always stay at the SQ varies across designs. Using a count data model and a binary logit we observe that both figures are particularly influenced by the number of alternatives. By interacting the alternative-specific constant of the SQ with our complexity measures in a conditional and random parameter logit, we then find that the probability to choose the SQ decreases with the number of alternatives and with designs having three attribute levels. The propensity to stay at the SQ, however, increases with higher values of entropy, more choice sets, and designs with a wider level range. Significant effects of socio-demographic characteristics on SQ choices are present in all our models.
    JEL: Q51 C35 D03
    Date: 2014
  44. By: Öner, Özge (Research Institute of Industrial Economics (IFN))
    Abstract: This paper investigates the determinants of the productivity of independent retail stores in Sweden by focusing on the impact of market size and regional hierarchy while controlling for several store and employee characteristics over time. The analysis utilizes Swedish store-level data for the years 2002–2008. To capture the urban-periphery interaction in retail markets, the analysis (i) uses an accessible market potential measure, which captures the impact of the potential demand both in close proximity in the region, and from outside the region separately, and (ii) investigates the stores that are located in central and non-central markets respectively. The results show an approximately 10 percent higher productivity premium associated with the market size in close proximity for centrally located independent stores, whereas regional market size is found to play an equally important role for both stores located in central markets and stores located in peripheral markets. The findings also show that employee characteristics do not contribute to the productivity of stores in central markets but that small but significant productivity returns are captured for stores located in peripheral markets. The differences in the impact arising from the market potential measures highlight the importance of taking the spatial continuum and regional hierarchy into account in an examination of the market size–productivity relationship for retailers.
    Keywords: Retail; Productivity; Urban rural hierarchy; Market accessibility
    JEL: D24 L81 R11 R12
    Date: 2014–11–06

General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.