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on Agricultural Economics |
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Issue of 2016‒11‒06
35 papers chosen by |
| By: | Maria Bruna Zolin (Ca’ Foscari University of Venice, Department of Economics); Matilde Cassin (Ca’ Foscari University of Venice, Department of Economics) |
| Abstract: | Given the phenomenon of growing urbanization, the pressure on food demand for a rising population as well as changing diets, China has had to resort to imports, becoming a net importer of food. In absence of external flows, this scenario is set to continue and could then materialize in a future Malthusian scenario. Improved efficiency and productivity, reform of land use rights, but also the policy of "going out" or land grabbing are some of the plausible strategies that the country could improve to avoid an inexorable stabilization or, at worst, a decline in domestic production, as well taking into account the impact of climate change on agricultural commodities. Starting from these premises, the paper aims to analyze the existing scenario identifying constrains and policies that could prevent the development of the Chinese food industry. |
| Keywords: | Food demand, Food supply, China, Food industry, Food security, Food safety |
| JEL: | Q11 Q15 Q18 Q31 O13 R14 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:ven:wpaper:2016:29&r=agr |
| By: | Caramugan, Karlo Martin; Bayacag, Purisima |
| Abstract: | Typical economic theory suggests that price volatility especially the upswings in food price in the commodity market is driven by market fundamentals, i.e., the demand and supply for the commodity. The recent behavior of the world food commodity prices has experienced several large spikes with the 2007-2008 episodes as the most dramatic. The prolonged rise of global commodity prices which peaked in mid-2008, had been seen to fall sharply and bottomed out in early 2009. This price increase which strongly deviated from its intrinsic value was characterized as explosive which indicates price bubble. The study investigated the existence of a price bubble in selected key ASEAN exports i.e. rice, rubber and palm oil. Using the generalized supremum augmented Dickey-Fuller (GSADF), results reveal multiple bubbles from 1980-2015. Furthermore, through descriptive correlation, these price bubbles had observed to form with some important local and international economic and political scenarios at the backdrop. With these findings, it is recommended that key exporting countries cooperate in creating an international supply management system to ensure the sufficiency and sustainability of the supply of the key agricultural products. Furthermore, it is recommended to improve current market information systems to reduce price volatility. ASEAN countries can reduce the price transmission from international markets through the use of trade controls and buffer stocks. In the longer run, exporting countries need to invest more in their agricultural sector, making it more productive and efficient, thus will make food more affordable for the poor and reduce price volatility. |
| Keywords: | Fundamental Price, GSADF, Price Bubble |
| JEL: | F62 Q17 Q18 |
| Date: | 2016–08 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:74807&r=agr |
| By: | Rigoberto Lopez (University of Connecticut); Nataliya Plesha (University of Connecticut); Ben Campbell (University of Connecticut) |
| Abstract: | At the request of Farm Credit East (FCE), the purpose of this report is to document and ascertain the significance of the agriculture sector in the economies of eight Northeastern states: Connecticut, Maine, Massachusetts, New Hampshire, New Jersey, New York, Rhode Island, and Vermont. 1 Agriculture is defined as encompassing agricultural production (i.e., crops, livestock, fisheries and forestry) and agricultural, forestry and fishery/seafood processing that is closely tied to the underlying production sectors. The study excludes the landscape service sector from the main analysis, but because it is significant in the environmental horticulture industry, it is included separately as a special sector. Also excluded are secondary processing sectors that do not use a state’s agricultural and forestry production such as bakeries and soft drinks manufacturing, which are economically important but, if included, would overstate economic impacts attributable directly to a state’s agriculture sector. Finally, this study does not include the value of ecosystem services, open space, and other non-market benefits derived from agriculture, which are significant but beyond the scope of this study. Because the agriculture sector purchases goods and services from other industries in their states and hires local labor, its economic impact cascades throughout the entire state economy, resulting in a “multiplier” or economic stimulus effect when spillover effects on other industries are taken into account. Using 2012 data (the latest available) on direct sales (at farm or factory or fishery gate) of 35 agriculture sectors, this study estimates the total economic impact of agriculture through the use of an input-output IMPLAN model that converts a sector’s direct sales into statewide sales, statewide value added and statewide jobs. Total impacts in the eight Northeastern states are simply the sum of impacts in each state. |
| Date: | 2014–12 |
| URL: | http://d.repec.org/n?u=RePEc:zwi:uconnr:02&r=agr |
| By: | Lifang Hu (Renmin University of China); Lopez, Rigoberto A. (University of Connecticut); Yinchu Zeng (Renmin University of China) |
| Abstract: | Following market reforms and economic growth since the late 1970s, agricultural wholesale markets in China have developed substantially and become increasingly important in food distribution. This paper investigates the impact of credit constraints on the performance of agricultural wholesalers via a stochastic frontier approach (SFA) and a sample of 1,332 wholesalers nationwide. Empirical results show that relaxing credit constraints imposed by formal institutions results in an approximately 20-30 percent increase in the annual sales of agricultural wholesalers who are credit-constrained (40 percent of the sample). Credit constraints disproportionally impact the performance of micro and small wholesalers. Thus, policies aimed at providing credit access for these wholesalers would significantly boost the performance of smaller agricultural wholesalers while improving the functioning of these markets in China. |
| Keywords: | credit, credit access, agriculture, wholesalers, stochastic frontier, China |
| JEL: | Q14 Q13 O13 |
| Date: | 2016–08 |
| URL: | http://d.repec.org/n?u=RePEc:zwi:wpaper:43&r=agr |
| By: | Feng, Siyi; Patton, Myles |
| Abstract: | Increasingly parties within the agri-food supply chain, i.e. producers, processors and retailers, need to respond to consumers’ demands for product quality and safety. The beef sector has numerous stages in its supply chain, and therefore price signals are very important in passing market signals along the chain. This paper uses weekly R3 and R4 steer and heifer prices in the regional markets of the UK and the Republic of Ireland to examine the effectiveness of the EUROP grade system in sending signals to the farm gate. |
| Keywords: | market signal, EUROP grade system, beef cattle, Agricultural and Food Policy, Farm Management, Livestock Production/Industries, |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa149:244786&r=agr |
| By: | Adam Rabinowitz (University of Connecticut); Rigoberto A. Lopez (University of Connecticut) |
| Abstract: | Connecticut farm milk prices increased an average of $0.35/cwt during the third quarter, driven primarily by a September milk price that reached above $17 for the first time since January 2015. Meanwhile, the total cost of production also increased back to first quarter estimates, averaging $32.88/cwt. Overall, the average shortfall of prices minus the minimum sustainable cost per cwt increased to an average of $9.90/cwt, thus continuing to trigger the need for payments to Connecticut dairy farmers under Public Act 09-229. Consistent with previous forecasts, milk prices are expected to stay stable with a slow recovery beginning in late 2016. The overall trends in milk prices and production costs continue to result in significant financial stress on Connecticut dairy farmers absent Public Act 09-229. |
| Keywords: | Connecticut, milk, production |
| Date: | 2015–11 |
| URL: | http://d.repec.org/n?u=RePEc:zwi:outrep:40&r=agr |
| By: | Caesar, Cororaton; David, Orden |
| Abstract: | The objective of the paper is to provide a preliminary assessment of the potential economic effects in the U.S. and EU28 of a reduction in their bilateral trade barriers. Using a global CGE model the paper develops four trade barrier reduction scenarios and analyzed their impact on trade, production, factor prices, and welfare in the two economies for a 10-year period through 2024 compared to a baseline without reductions. The scenarios are: (i) 90% reduction in tariffs only; (ii) 90% and 20% reductions in tariffs and NTMs, respectively, for all sectors; (iii) 90% and 20% reductions in tariffs and NTMs in non-agriculture only; and (iv) 90% reduction in both tariffs and NTMs. Results indicate largest percentage increases in bilateral trade for agriculture/food sectors when liberalization includes these sectors, but that most of the gains are in non-agriculture due to its predominance in production and initial trade flows. Only the fourth scenario reverses the baseline downward trend through 2024 in U.S.-EU28 bilateral trade as a share of their global totals. |
| Keywords: | Transatlantic Trade and Investment Partnership (TTIP), Regional trade, United States, European Union 28, Global computable general equilibrium (CGE) model, Tariffs, Non-tariff measures (NTM) |
| JEL: | C68 D58 F15 |
| Date: | 2016–04–10 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:74773&r=agr |
| By: | Sun, Shengmin (Shandong University); Lopez, Rigoberto A. (University of Connecticut); Xiaoou Liu (Renmin University of China) |
| Abstract: | This paper evaluates the impact of property rights, labor mobility barriers and degrees of collectivization on China’s agricultural growth in 1950-1978. Using a semi-Bayesian stochastic frontier analysis, we find that collective production with free labor mobility and private property rights was the most efficient institutional setting. Although deviations from the two institutions resulted in a decline in agricultural production, the loss in agricultural production from labor mobility barriers was up to five times greater than loss from depriving farmers of private property rights. |
| Keywords: | economic growth, institutions, agriculture, property rights, labor mobility, China |
| Date: | 2016–04 |
| URL: | http://d.repec.org/n?u=RePEc:zwi:wpaper:41&r=agr |
| By: | Mihai, Florin-Constantin; Ingrao, Carlo |
| Abstract: | The paper examines the biowaste management issues across rural areas of Romania in the context of poor waste management infrastructure in the last decade (2003-2012). Biowaste is the main fraction of municipal waste, thus a proper management is a key challenge in order to sustain a bioeconomy in the near future. The amount of biowaste generated and uncollected by waste operators is generally uncontrolled disposed if not recovered through home composting. The paper points out the role of home composting in diverting the biowaste from wild dumps and landfills for the regions covered or not by waste collection services. Home composting and the biowaste losses are further assessed based on several scenarios (worse-case, pessimistic, realistic, optimistic) where the net loads of greenhouse gasses (GHG) are calculated at national and regional levels. The transition of home composting techniques, from open piles to plastic bins with respect to standard guidelines will improve the home composting performance in terms of compost quality and net GHG’s savings, supporting a bio-based economy which will lead towards a sustainable rural development. Regional disparities are revealed across Romanian counties and the paper opens new research perspectives regarding which options should be adopted by counties and rural municipalities in the biowaste management process. |
| Keywords: | home composting, biowaste, rural areas, waste management; GHG’s emissions |
| JEL: | K32 O18 Q15 Q51 Q53 Q54 Q56 Q57 R11 R58 |
| Date: | 2016–10 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:74854&r=agr |
| By: | Zecca, Francesco; Rastorgueva, Natalia |
| Keywords: | Agricultural and Food Policy, Farm Management, |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa149:245706&r=agr |
| By: | Bareille, François; Beaugrand, Florence; Duvaleix-Treguer, Sabine |
| Abstract: | The commitment of members reduces as an agricultural cooperative grows larger. Using a multinomial logit model, we explore how the alignment of members’ objectives and those of cooperatives influence member commitment. Our study is based on a sample of 3,205 members of a French multipurpose cooperative. We show that the availability of outlets and supplies to members strengthens it. Furthermore, the adoption of new agricultural practices has a small but significant effect. Other determinants, such as farm organization, or geographical distance to the cooperative headquarters reinforce member commitment. |
| Keywords: | Agricultural Cooperatives, Member Commitment, Farm Innovation, Agricultural and Food Policy, Farm Management, Research and Development/Tech Change/Emerging Technologies, |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa149:244948&r=agr |
| By: | Disdier, Anne-Célia; Gaigné, Carl; Herghelegiu, Cristina |
| Keywords: | Agricultural Finance, Farm Management, |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa149:244783&r=agr |
| By: | Filippi, Maryline; Chapdaniel, Alain |
| Keywords: | Agricultural and Food Policy, |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa149:245167&r=agr |
| By: | Giannakis, Elias; Bruggeman, Adriana; Zoumides, Christos |
| Keywords: | Agricultural and Food Policy, Farm Management, |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa149:244899&r=agr |
| By: | Lopez, Rigoberto A. (University of Connecticut); Zheng, Hualu (University of Connecticut); Azzam, Azzeddine (University of Nebraska-Lincoln) |
| Abstract: | This study estimates mark-ups and oligopoly power for U.S. food industries using a stochastic frontier (SF; Kumbhakar, Baardsen and Lien, 2012; Baraigi and Azzam, 2014) approach, where mark-ups are treated as systematic deviations from a marginal cost pricing frontier. We apply the analysis to 36 U.S. food industries using NBER-CES Manufacturing Industry Database (2014), which covers a span of 31 years from 1979 to 2009. Empirical results show that all the food industries in the sample exercise at least some degree of oligopoly power, but most in a moderate manner. The estimated mean Lerner index is approximately 0.06, generally much lower than obtained using the conventional NEIO approaches. The SF model used provides a novel and promising framework to test and measure the degree of market power in agricultural and food markets. |
| Keywords: | oligopoly power, market power, food industries, stochastic frontier |
| Date: | 2015–07 |
| URL: | http://d.repec.org/n?u=RePEc:zwi:wpaper:39&r=agr |
| By: | Ton, Giel; Vellema, Wytse; Desiere, Sam; Weituschat, Sophia; D’Haese, Marijke |
| Keywords: | Agricultural and Food Policy, Farm Management, |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa149:244792&r=agr |
| By: | Eckhard Platen; David Taylor |
| Abstract: | Catastrophe risk is a major threat faced by individuals, companies, and entire economies. Catastrophe (CAT) bonds have emerged as a method to offset this risk and a corresponding literature has developed that attempts to provide a market-consistent pricing methodology for these and other long-dated, insurance-type contracts. This paper aims to unify and generalize several of the widely-used pricing approaches for long-dated contracts with a focus on stylized CAT bonds and market-consistent valuation. It proposes a loading pricing concept that combines the theoretically possible minimal price of a contract with its formally obtained risk neutral price, without creating economically meaningful arbitrage. A loading degree controls how much influence the formally obtained risk neutral price has on the market price. A key finding is that this loading degree has to be constant for a minimally fluctuating contract, and is an important, measurable characteristic for prices of long-dated contracts. Loading pricing allows long-dated, insurance-type contracts to be priced less expensively and with higher return on investment than under classical pricing approaches. Loading pricing enables insurance companies to accumulate systematically reserves needed to manage its risk of ruin in a market consistent manner. |
| Date: | 2016–10 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1610.09875&r=agr |
| By: | Pérez, Jose Antonio; Roibás, David; Wall, Alan |
| Abstract: | Health and reproductive disorders have been found to reduce milk yields in dairy cows. We combine information from two different sources to create an unbalanced panel data set of 214 dairy farms in northern Spain observed over the period 2006-2014 which includes data on production variables and health and reproduction indicators. We use this data to estimate a stochastic production frontier where the somatic cell count and the calving interval are included as determinants of technical efficiency. Higher somatic cell counts and longer calving intervals are found to decrease technical efficiency, translating into significant losses in revenue. In a simulation exercise, we find that a representative farm which reduced the values of these indicators from their median sample values to their first quartile values would increase its revenue by 13%. |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:oeg:wpaper:2016/05&r=agr |
| By: | Sanchari Ghosh (Northeastern State University); Keith Willett (Oklahoma State Univeristy) |
| Abstract: | Economic studies have shown that when instream flow constraints are binding and surface water possesses public good characteristics, water transfers on the basis of consumptive use will lead to third party externalities and often entail high transaction costs. One major reason is the dominance of bilateral trading or multilateral trading having a high likelihood of strategic behavior. This paper proposes an alternative institutional arrangement called smart markets which maximize the aggregate efficiency gains from trading by allowing trades to be consummated through a common pool. The analytical model with instream flow constraints being binding, shows, that the shadow prices evolving from the centralized solution, incorporates the third party external costs imposed by any trader. Thus the financial burden of compensating victims who are affected by lower flows downstream or insufficient availability of water for diversions, are avoided. |
| Keywords: | consumptive use rights, inflow stream rights, water rights markets, third-party externalities, computer-assisted smart markets |
| JEL: | Q25 Q28 |
| Date: | 2016–09 |
| URL: | http://d.repec.org/n?u=RePEc:okl:wpaper:1704&r=agr |
| By: | Lorenz, Bettina Anne-Sophie; Langen, Nina; Landwehr, Stefanie; Hartmann, Monika |
| Abstract: | In order to gain a better understanding of the preferences for regional food products in Germany, our study analyzes consumers’ WTP for unlabeled versus regionality labeled strawberries under consideration of taste perception effects.Our results indicate that stated regional origin does not influence the taste perception for strawberries but that it may influence consumers’ WTP. Thus, we conclude that consumer preferences for regional food products presumably are not only related to quality perceptions but in addition influenced by other aspects such as superior affective or moral valuation of a regional origin. |
| Keywords: | regionality, labels, Consumer/Household Economics, |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:ags:gewi16:244872&r=agr |
| By: | Britz, Wolfgang; Linda, Arata |
| Abstract: | We present a dual cost function estimation for total farm cost in a programming model setup, with individual crop shares and expected yields as arguments, estimated simultaneously with risk behaviour. Using large unbalanced samples of specialized arable farms from Northern Italy, the French Grandes Culture Region and Cologne-Aachen in Germany that are observed for at least three consecutive years over the time period 1995-2008, we find a quite satisfactory fit for crop shares and total costs. We implement two model variants where zero crop observations are considered only in the second variant. Our results indicate that the specialized arable crop farmers in the samples use crop shares only to a limited degree as an instrument of risk management. We find moderate technical progress and large efficiency differences between farms. |
| Keywords: | Risk, dual cost function estimation, programming model, Production Economics, Research Methods/ Statistical Methods, Risk and Uncertainty, |
| URL: | http://d.repec.org/n?u=RePEc:ags:gewi16:244801&r=agr |
| By: | Kostrova, Alisa; Britz, Wolfgang; Finger, Robert; Djanibekov, Utkur |
| Keywords: | Perennial Energy Crops, Farming Investment Decision, New Investment Theory, Multi-stage Option, Research Methods/ Statistical Methods, Risk and Uncertainty, |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:ags:gewi16:244864&r=agr |
| By: | Piccinini, L.C.; Chang, T.F.M.; Iseppi, L.; Rosa, F. |
| Keywords: | Agricultural and Food Policy, |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa149:245170&r=agr |
| By: | Soullier, Guillaume; Moustier, Paule |
| Keywords: | Agricultural and Food Policy, |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa149:245704&r=agr |
| By: | Bošková, Iveta; Ratinger, Tomáš; Kličková, Kristýna |
| Keywords: | Agricultural and Food Policy, |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa149:244898&r=agr |
| By: | Carraresi, Laura; Berg, Silvan; Bröring, Stefanie |
| Keywords: | Agricultural and Food Policy, Environmental Economics and Policy, |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa149:244788&r=agr |
| By: | Bombaj, Florjan; Barjolle, Dominique; Touzard, Jean-Marc; Osmani, Myslym |
| Keywords: | Agricultural and Food Policy, |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa149:245169&r=agr |
| By: | Kufel-Gajda, Justyna |
| Keywords: | Agricultural and Food Policy, |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa149:245703&r=agr |
| By: | Cavicchioli, Daniele; Cacchiarelli, Luca; Pretolani, Roberto |
| Keywords: | Agricultural and Food Policy, |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa149:245160&r=agr |
| By: | Balmann, Alfons; Valentinov, Vladislav |
| Abstract: | Though structural change in the agricultural sector has huge merits for economic development, the public opinion on structural change is quite negative. On the one hand, structural change does hardly lead to Pareto superior outcomes. On the other hand, there are concerns that structural change may go along with negative social externalities which may result from more industrialised forms of agriculture. This paper argues that addressing these concerns by agricultural economic research requires a systems perspective which goes far beyond traditional economic and reductionist perspectives. Conceptual approaches can for instance be found in the research on complex systems as well as in Luhmannian systems theory. Therefore, collaboration across disciplines is essential to develop a better theoretical understanding of structural change. |
| Keywords: | Agricultural and Food Policy, |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa149:246420&r=agr |
| By: | El Hadad Gauthier, Fatima; Kessari, Myriam; Palma, Giulia; Temri, Leïla; Tozanli, Selma |
| Keywords: | Agricultural and Food Policy, Food Consumption/Nutrition/Food Safety, |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa149:244957&r=agr |
| By: | Bonnet, Céline; Bouamra-Mechemache, Zohra; Molina, Hugo |
| Keywords: | Agricultural and Food Policy, |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa149:245168&r=agr |
| By: | Lévi, Loïc; Latruffe, Laure; Ridier, Aude |
| Abstract: | This paper investigates the link between farm investment and farm performance considering two types of farms that may have a different investment strategy: farms that are intensive in capital, and farms that have a low capital intensity. Panel data on specialized dairy farms of one sub-region of French Brittany (Ille-et-Vilaine) for the period 2005-2014 were used. Results from adjustment cost models indicate that farms tend to smooth their investments to limit adjustment cost and that farm performance has a negative impact on investment. |
| Keywords: | farms, investment, adjustment cost model, performance, France, Brittany, dairy sector, panel data, Environmental Economics and Policy, Farm Management, |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa149:244951&r=agr |
| By: | Marcello Sartarelli (Dpto. Fundamentos del Análisis Económico) |
| Abstract: | The relationship between handedness, ability and, in addition, their joint role in explaining earnings and decisions under risk is studied experimentally to shed new light on the mechanisms behind the mixed evidence in survey data. Data on 432 under graduate students show that left-handed (L) do not obtain a significantly different Cognitive Reflection Test score relative to others nor different payoffs in a stylized labour market with agents working for principals and being paid for exerting costly effort, a proxy for earnings. In addition, they are not significantly more risk averse. In partial contrast, their self-reported achievement at university tends to be significantly higher and driven by females although weakly for some specifications. Finally, when looking at personality traits, measured using the Big Five test, L are significantly more agreeable, showing higher preferences for cooperation, and also tend to be more extroverted, in particular more sociable. |
| Keywords: | Ability, Big Five, CRT, earnings, gender, handedness, leftie, left-handed, personality traits, risk. |
| JEL: | C91 D81 D87 |
| Date: | 2016–10 |
| URL: | http://d.repec.org/n?u=RePEc:ivi:wpasad:2016-04&r=agr |
| By: | Devaux, André; Torero, Maximo; Donovan, Jason; Horton, Douglas E. |
| Keywords: | trade; market access; smallholders; producer organizations; transport; wholesale marketing; retail marketing; farmers organizations; value chains; food processors |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:synops:9780896299771&r=agr |