nep-agr New Economics Papers
on Agricultural Economics
Issue of 2017‒02‒12
sixty-one papers chosen by
Angelo Zago
Università degli Studi di Verona

  1. WILLINGNESS TO PAY FOR IRRIGATION WATER IN LOUISIANA By Gautam, Tej K.; Paudel, Krishna P.; Guidry, Kurt M.
  2. Ukraine's Regional Economic Growth and Analysis of Regional Disparities By Svitlana Maksymenko
  3. A Spatial Econometric Analysis of Land Use Efficiency in Large and Small Municipalities By Gianni Guastella; Stefano Pareglio; Paolo Sckokai
  4. Does willingness to pay increase with the number and strictness of sustainability labels? Some initial evidence on embedding effects in laboratory experiments using the Becker-DeGroot-Marschak mechanism. By Tebbe, Eva; von Blanckenburg, Korbinian
  5. Market chain participation and food security: the case of the Ugandan maize farmers By Pierluigi Montalbano; Rebecca Pietrelli; Luca Salvatici
  6. Coaseian biodiversity conservation. Who benefits? By Eichner, Thomas; Pethig, Rüdiger
  7. A bio-economic analysis for land-uses and biodiversity in metropolitan France By Lauriane MOUYSSET; Claire RAIS ASSA; Jean-Sauveur AY; Frédéric JIGUET; Romain LORRILIERE; Luc DOYEN
  8. Trends in distributional characteristics : Existence of global warming By Gonzalo, Jesús; Gadea Rivas, María Dolores
  9. Governance, economic, social and environmental sustainability of farms of different luridical type in Bulgaria By Bachev, Hrabrin
  10. On the relationship between GHGs and Global Temperature Anomalies: Multi-level rolling analysis and Copula calibration By Elettra Agliardi; Thomas Alexopoulos; Christian Cech
  13. Rural Land Transfer and Financial Impact: Evidence from China By Jiang, Meishan; Paudel, Krishna; Mi, Yunsheng
  14. Impact of Food Reserve Programs on Price Levels and Volatility: Natural Experiment from Benin Rice Market in West Africa By Lawani, Abdelaziz; Reed, Michael; Fiamohe, Rose
  15. The Economic Benefits of Irrigation Districts under Prior Appropriation Doctrine: An Econometric Analysis of Agricultural Land-allocation Decisions By Ji, Xinde; Cobourn, Kelly M.
  16. Understanding food inflation in India: A Machine Learning approach By Akash Malhotra; Mayank Maloo
  17. Contributing to Economic and Social Development in Sub-Saharan Africa through Value-Added Agriculture By N'DEDE HOURIZENE, CYNTHIA B.; WILSON, NORBERT
  18. Why did Argentina become a super-exporter of agricultural and food products during the Belle Époque (1880-1929)? By Vicente Pinilla; Agustina Rayes
  19. Was von Thünen right? Cattle intensification and deforestation in Brazil By Francisco Fontes; Charles Palmer
  20. FARMERS' PREFERENCE ON CONDITIONS IN MANUFACTURING PINEAPPLE SALE CONTRACT IN RAYONG PROVINCE By Parkpoom Pichhannaronk; Apichart Daloonpate; Santi Sanglestsawai Author-Email : -
  21. Temporary transfers of land and risk-coping mechanisms in Thailand By Gwendoline Promsopha
  22. Land Misallocation and Productivity By Diego Restuccia; Raül Santaeulàlia-Llopis
  23. Reexamining the Question: Are Imported Beef and Domestic Beef Complements or Substitutes? By James, L.; Glynn, T.
  24. Recreational Use of Public Waterways and the Impact of Water Quality By Breen, Benjamin; Curtis, John; Hynes, Stephen
  25. Working Paper 247 - Credit constraints and farm productivity: Micro-level evidence from smallholder farmers in Ethiopia By AfDB AfDB
  26. Nudging à la carte – A field experiment on food choice By Gravert, Christina; Kurz, Verena
  27. Localization of manufacturing industries and specialization in Mexican states: 1993–2013 By Gómez-Zaldívar, Manuel; Mosqueda, Marco T.; Duran, Jazmin A.
  28. Paying for performance for health care in low- and middle-income countries: an economic perspective By Martin Chalkley; Andrew Mirelman; Luigi Siciliani; Marc Suhrcke
  29. The agro-processing industry and its potential for structural transformation of the Ghanaian economy By Nkechi S. Owoo; Monica P. Lambon-Quayefio
  30. Identifying growth opportunities in the Southern African Development Community through regional value chains: The case of the animal feed to poultry value chain By Phumzile Ncube; Simon Roberts; Tatenda Zengeni; Paul C. Samboko
  31. Efficient Warnings, Not "Wolf or Rabbit" Warnings By Robinson, Lisa A.; Viscusi, W. Kip; Zeckhauser, Richard J.
  32. Measuring Prevalence, Profiling and Evaluating the Potential of Policy Impacts using Two Food Security Indicators in Guatemala By Sandoval, Luis; Carpio, Carlos E
  33. Welfare Analysis of the U.S.-Mexican Tomato Suspension Agreement By Kosse, Elijah; Devadoss, Stephen
  34. Local Climate Sensitivity: A Statistical Approach for a Spatially Heterogeneous Planet By J. Isaac Miller
  35. Fed Cattle Marketing: A Field Experiment By Janzen, Matthew; Coatney, Kalyn; Rivera, Daniel; Harri, Ardian; Busby, Darrell; Groves, Matt
  36. Cost-Benefit Analysis of Rwanda’s Dairy Value Chains By Mikhail Miklyaev; Shahryar Afra; Melani Schultz
  37. The Ant and the Grasshopper: Seasonality and the Invention of Agriculture By Matranga, Andrea
  38. The Economics of Replication By Mueller-Langer, Frank; Fecher, Benedikt; Harhoff, Dietmar; Wagner, Gert G.
  39. Incorporating New Crops into Traditional Crop Rotation and the Environmental Implication By Kim, GwanSeon; Mark, Tyler; Buck, Steven
  40. Consumer Willingness to Pay for Tennessee Certified Beef By Merritt, Meagan; Lewis, Karen; Griffith, Andrew; Jensen, Kimberly
  41. Cost-Benefit Analysis of Liberia’s Rice and Goat Value Chains By Mikhail Miklyaev; Majid Hashemi; Melani Schultz
  42. The Taste for Variety: Demand Analysis for Nut Products in the United States By Cheng, Guo; Dharmasena, Senarath; Capps, Oral Jr
  44. Basis risk and welfare effect of weather index insurance for smallholders in China By Huo, Ran; Octavio, Ramirez
  45. Estimating the Impact of Central Winter Heating on Air Quality in China By Wang, Meijuan
  46. Implications of a New Cotton Support System in Georgia By Minor, John; Russell, Levi; Brewer, Brady
  47. Virtual Water Trade and Bilateral Conflicts By Enrico De Angelis; Rodolfo Metulini; Vincenzo; Massimo Riccaboni
  48. Externalities and foreign capital in aquaculture production in developing countries By Wisdom Akpalu; Worku T. Bitew
  49. Public Distribution System in India - Leakage, Self-Selection and Targeting Errors By Kozicka, Marta; Weber, Regine; Kalkuhl, Matthias
  50. Scale effect in a LUTI model of Brussels: challenges for policy evaluation By JONES, Jonathan; PEETERS, Dominique; THOMAS, Isabelle
  51. Sugar Taxes and Changes in Total Calorie Consumption: A Simple Framework By John Creedy
  52. A Hedonic Analysis of Feeder Cattle Auction Prices in Northeast Texas By Lopez, Jose; Bankole, Taiwo; Wahrmund, Jackie
  53. U.S. Energy Price Volatility Spillover in Global Corn Markets By Regmi, Madhav; Featherstone, Allen M.
  54. Determining the Location of a Tennessee Milk Condensing Plant By Mendez, David F.; Hughes, David W.; Yu, T. Edward; Griffith, Andrew P.
  55. Clean up your own mess: An experimental study of moral responsibility and efficiency By Jakob, Michael; Kübler, Dorothea; Steckel, Jan Christoph; van Velduizen, Roel
  57. An Analysis of the South Carolina Peanut Industry By Bolotova, Yuliya V.; Smith, Nathan B.
  58. Evaluating the Economic Profitability of Establishing an Aquaculture Research Facility. The case of Clemson University's Aquaculture Center By Frierson, McCauley; Vassalos, Michael; Beecher, Lance
  59. Building a Resilience Index in Northern Ghana Context By Gutierrez, Elizabeth; Zereyesus, Yacob; Ross, Kara; Amanor-Boadu, Vincent
  60. Generational Shadow in Farming Business: How Does It Affect the Succession Process? By Wang, Youzhi; Delgado, Michael S.; Marshall, Maria I.; Dobbins, Craig L.
  61. Price Effects of Heifer Reproductive Tract Maturity Scores By Russell, Levi A.; Buono, Gabrielle; Duggin, Jason; Segers, Jacob R.

  1. By: Gautam, Tej K.; Paudel, Krishna P.; Guidry, Kurt M.
    Abstract: We conducted survey to collect information from Louisiana farmers to understand their concerns related to irrigation water quality and availability of sufficient water for crop irrigation. We used logistic models to estimate the willingness to pay (WTP) for irrigation water during critical crop growing periods. Variables affecting the participation in WTP are income, land holding size, risk aversion, and education. Our estimated results show that farmers with higher education are more likely to pay for irrigation water compared to farmers with high school and college degree. Age of the farmers, farm revenue, size of the rented land have negative effect on willingness to pay for irrigation water. The sizes of the owned land and risk aversion factor have positive effect on willingness to pay.
    Keywords: willingness to pay/Willingness to accept, water trading, irrigation technology, logit, soybean, Production Economics, Resource /Energy Economics and Policy, Q12, Q25,
    Date: 2017–02
  2. By: Svitlana Maksymenko
    Abstract: Is here evidence that economic growth reduces poverty in Ukraine's regions which lag in industrial and agricultural development? To answer this question and analyze medium-range growth prospects, we build an econometric model consisting of four blocks - industry, agriculture, construction, and services - for all administrative regions of Ukraine. After adjusting a baseline 2015-2017 forecast for a structural break caused by a fall in production and applying exponential smoothing technique, we identify the top and bottom regional performers in different sectors of the economy. From the policy analysis perspective, we find that the rise in industrial production does not likely affect the level of poverty in the bottom regions. We also find that it is the agricultural growth that could potentially reduce poverty there. The paper discusses some alternative scenarios and development goals for a reduction in entrenched rural poverty in Ukraine.
    Date: 2016–01
  3. By: Gianni Guastella (Università Cattolica and Fondazione Eni Enrico Mattei); Stefano Pareglio (Università Cattolica and Fondazione Eni Enrico Mattei); Paolo Sckokai (Università Cattolica)
    Abstract: We estimate the relationship between urban spatial expansion and its socio-economic determinants in Lombardy, the most urbanised region of Italy (and one of the most urbanized of the European Union), at the municipality level. Test results suggest that this relationship varies significantly among municipalities of different size and findings support the hypothesis that larger ones are more efficient in managing land take. In particular, we find that the marginal land consumption per new household is inversely related to the size of the municipality and we link this evidence to the fact that, since more space is often available, small municipalities pay less institutional attention to the issue of land take and consequently internalise less the environmental externalities. This evidence calls for a reflection on the role of planning policies and the effectiveness of undifferentiated measures to contain land take, especially in the case of Italy, where the municipalities, more than 99% of which have less than 50,000 inhabitants, decide on land use transformations.
    Keywords: Land Take, City Size, Threshold Regression, Spatial Econometrics
    JEL: O18 Q15 R14
    Date: 2017–01
  4. By: Tebbe, Eva; von Blanckenburg, Korbinian
    Abstract: The environmental need for and economic opportunities provided by sustainability in food production are becoming increasingly popular in both society and research. Interacting with this, labels signaling sustainable product attributes are gaining importance, although uncertainty concerning the environmental, micro- and macroeconomic benefits of such labels persist. One of the questions still incompletely answered is whether consumers are willing to pay more for labeled than for unlabeled products and whether this willingness increases with the number of labels on a food product. To tackle this question, we conduct a laboratory experiment, testing consumer valuations of different labeling strategies. Using the Becker-deGroot-Marschak mechanism, consumer willingness to pay (WTP) for 15 food products is measured. The products were endowed with up to six different sustainability labels, such that each grocery item was available in eight product versions. 191 respondents were allocated to groups, of which each was confronted with a different set of product versions. In order to compare labeling schemes across all products, we calculated an aggregated standardized relativized WTP. The results indicate that participants are prone to allocating WTP premiums to labeled products, more than to unlabeled products. However, the premiums do not vary with an increasing number of labels, independent of whether the labels signal substitute or complementary sustainability information. Thus, the results are not entirely in line with normative notions of magnitude variation, but rather with behavioral economic concepts.
    JEL: L15 D12 D44
    Date: 2016
  5. By: Pierluigi Montalbano (Department of Economics and Social Sciences, Sapienza University of Rome (IT).); Rebecca Pietrelli (Food and Agricultural Organization of the United Nations); Luca Salvatici (Department of Economics and Manlio Rossi-Doria Centre for Economic and Social Research, University of Roma Tre (IT))
    Abstract: An assessment of the links between market chain participation and food security is hampered by a scant empirical literature, mostly based on case studies. Our goal is to deal with this issue by providing a sound identification strategy using the WB LSMS-ISA panel data 2009-12 for Uganda and controlling for self-selection. We show that both the level and the variability of Ugandan maize farming households' food consumption is affected by market choice. However, contrary to common wisdom, intermediaries do not play a major role in farmers' welfare. This empirical evidence is consistent with the theoretical prediction that also in Sub-Saharan Africa modern food chains tend to reinforce vertical coordination across actors and the enforcement of contracts, thus reducing the market power of intermediaries.
    Keywords: Maize, value supply chain, panel, Uganda.
    JEL: Q12 O12 D12 C33
    Date: 2017–02
  6. By: Eichner, Thomas; Pethig, Rüdiger
    Abstract: We analyze strategies to conserve worldwide biodiversity assuming that biodiversity and ecosystem services are positively correlated with that share of land that is effectively protected by land-use restrictions against the deterioration of ecosystems (land-use approach). The willingness-to-pay for biodiversity conservation is positive in developed countries (North), but zero in developing countries (South). The strategies of biodiversity conservation are cooperation among the North (Regime 2) and financial support of biodiversity conservation from North to South modeled as an international market for biodiversity conservation (Regime 3). We investigate the impact on biodiversity conservation and welfare when the world economy moves from business as usual (BAU, Regime 1) to the stand-alone Regimes 2 and 3 and to the combination of the Regimes 2 and 3, called Regime 4. Regime 4 turns out to be the Coaseian socially optimal solution to biodiversity conservation. In a parametric version of the model, we derive a number of unexpected results. The move from BAU to Regime 2 may reduce biodiversity conservation and welfare in North and South. Regime 3 fares better, but it hardly improves welfare and the conservation of biodiversity in our simulations. Although Regime 4 is socially optimal, its distributional effects may be undesirable, because the North or the South are worse off in Regime 4 than in BAU for some subsets of parameters.
    JEL: Q15 Q57 Q58
    Date: 2016
  7. By: Lauriane MOUYSSET; Claire RAIS ASSA; Jean-Sauveur AY; Frédéric JIGUET; Romain LORRILIERE; Luc DOYEN
    Abstract: Dealing with the erosion of terrestrial biodiversity has become of key importance in order to ensure ecosystems sustainability. Agricultural and forestry activities are one major anthropogenic driver of this decline. The underlying land-use changes result in the alteration of species habitats. Current agricultural and forestry public policies exhibit drawbacks in terms of biodiversity conservation. Reconciling economic and ecological objectives of such public policies thus remains an ongoing critical challenge. In that respect, this paper presents the impacts of contrasted public policy scenarios within a dynamic and spatialized bio-economic framework applied to metropolitan France. We assessed ecological performances through 5 indicators accounting for various structural and functional components of the biodiversity while economic performances refer to land-use incomes. We demonstrate that long-term synergies between ecological and economic performances can emerge, especially within extensive-farming scenarios. Our results underline the necessary adaptation of land-use public policies by taking into account the biodiversity component being supported. We advocate the use of biodiversity indicators into the public decision-making process.
    Keywords: Biodiversity, Bio-economics, Land-uses, Public policies, Scenarios, Climate
    JEL: Q24 Q57
    Date: 2017
  8. By: Gonzalo, Jesús; Gadea Rivas, María Dolores
    Abstract: Does global warming exist? The answer to this question is the starting point for all the other issues involved in climate change analysis. In this paper, global warming is defined as an increasing trend in certain distributional characteristics (moments, quantiles, etc) of global temperatures, and not only on the average. Temperatures are seen as a functional stochastic process from which we obtain distributional characteristics as time series objects. We present a simple robust trend test and prove that it is able to detect the existence of an unknown trend component (deterministic or stochastic) in these characteristics. Applying this trend test to daily Central England temperatures (1772-2016) and to Global cross-sectional temperatures (1880-2015), we obtain the same strong conclusions: (i) there is an increasing trend in all the distributional characteristics (time series and cross-sectional) and this trend is larger in the lower quantiles than in the mean, median and upper quantiles; (ii) there is a negative trend in the characteristics measuring dispersion (lower temperatures approach the median faster than the higher ones).The paper concludes by clearly answering the opening question in the afirmative and showing that global-local warming is not only a phenomenon of an increase in the average temperature but also of a larger increase in the lower temperatures producing a decreasing dispersion. This type of warming has more serious consequences than the one found by using only the average.
    Keywords: Temperature distributions; Quantiles; Trends; Distributional characteristics; Functional stochastic processes; Global-Local warming; Climate change
    JEL: Q54 C32 C31
    Date: 2017–01–01
  9. By: Bachev, Hrabrin
    Abstract: The issue of assessment of absolute and comparative sustainability of major farming structures is among the most topical for researchers, farmers, investors, administrators, politicians, interests groups and public at large. Despite that practically there are no assessments on sustainability level of Bulgarian farms of different juridical type in conditions of European Union Common Agricultural Policy implementation. This article applies a holistic framework and assesses absolute and comparative sustainability of Bulgarian farming enterprises of different juridical type. Initially the method of the study is outlined, and overall characteristics of surveyed holdings presented. After that an assessment is made of integral, governance, economic, social, environmental sustainability of farming structures of different juridical type. Next, structure of farms with different sustainability levels is analyzed. Finally, conclusion from the study and directions for further research and amelioration of sustainability assessments suggested.
    Keywords: farm sustainability, governance, economic, social, ecological aspects, Bulgaria
    JEL: D1 D2 D23 Q12 Q15 Q18
    Date: 2017–01
  10. By: Elettra Agliardi (Department of Economics, University of Bologna, Italy; The Rimini Centre for Economic Analysis, Italy); Thomas Alexopoulos (Department of Economics, University of Peloponnese, Greece; Department of Economics, University of Bologna, Italy); Christian Cech (University of Applied Sciences BFI, Austria)
    Abstract: The relationship between GHG emissions and global warming is studied through multi-level rolling analysis to assess whether or not there are increasing rates in global change as a result of higher levels of anthropogenic emissions, as we move forward in time. Furthermore, in order to assess whether we observe tail-dependence, representing simultaneous occurrence of extreme events, we employ copula methods. Our main findings do not support views of increasing rates in global climate change as a result of higher levels of emissions. On the contrary, they suggest a constant or even a decreasing effect of emissions on temperature anomalies especially from 2005 onward. At the same time, our copula calibration shows that the Frank copula achieves the best fit. Since the Frank copula is a copula that assigns a low probability to joint extreme events, our analysis does not show tail dependence.
    Keywords: GHGs, Global temperature anomalies, Rolling analysis, Copulas
    JEL: Q54 Q51 C53 C69
    Date: 2017–02
  11. By: Gautam, Tej K.; Bhatta, Dependra
    Abstract: The factors considered in using irrigation as a production strategy in Nepal has been different from many countries mainly because of geographical diversity, water availability and investment constraint. This paper identifies the factors affecting irrigation technology adoption among the farmers in Nepal using household survey data 2011. We use a multinomial logit model to estimate variables affecting multiple irrigation technology (tube-well, canal and pond) adoptions in which sociodemographic information, land holding, access to credit, and geographical factors are major explanatory variables. Preliminary results show that education, land holding size, access to credit, and geographic factors have a higher impact on tube-well irrigation technology adoption. Additionally, productivity of major crops found to increase substantially in irrigated land. The impact of shallow tube-well is much greater in plain compared to other modes of irrigation in plain and hilly regions. Findings from this study should provide insights to producers and policy makers in identifying opportunities for utilizing and investing in more efficient irrigation technology
    Keywords: Irrigation technology, shallow tube well, water, farming, multinomial logit, Crop Production/Industries, Production Economics, Resource /Energy Economics and Policy, Q12, Q25,
    Date: 2017–02
  12. By: Hussein, Ahmed
    Abstract: Corn constitutes about 60 % of the normal poultry diet, and the remaining ingredients are soybean meal(Leeson and Summers 2005). The feed cost represents about 70% of the operation cost shares in poultry production. So any increase in corn feed prices could potentially reduce the profit margin for poultry growers and consequently a reduction in the quantity of poultry produced and a higher price for poultry meat at the retail level. Most of the recent corn price spikes in the U.S has been partly due to ethanol production which consumes about 30% of U.S corn. This paper deploys Nerlovian partial adjustment model for broiler, turkey and total poultry production in the U.S. The previous period’s corn feed price elasticity of demand is greater in the long-run compared to the short-run across broiler and total poultry production. Meanwhile, turkey production shows higher adjustment speeds but lower short and long-run corn feed price elasticity of demand.
    Keywords: Nerlove Model, corn price, poultry production., Agribusiness, Production Economics,
    Date: 2017–02–04
  13. By: Jiang, Meishan; Paudel, Krishna; Mi, Yunsheng
    Abstract: Land is the most valuable capital that farmers own. Land transfer can improve income of farmers through an optimal allocation of factors of production. The land transfer is not only transferring of the ownership but also transferring of the management rights. Chinese rural land system has its unique characteristics: ownership, contract, and management rights. Ownership rights are owned by collectives, farmers have contract management rights which are divided into management transfer rights and contract rights. Since 2008, farmers are provided with both land contract rights and land management transfer rights. This reform has provided farmers with financial opportunities to obtain revenues using different channels. Transferring-in land needs additional capital thereby causing demand effects, but transferring-out land allows farmers to earn income thereby causing supply effects. Land transfer also changes farmer’s agricultural investment and insurance behavior. This paper uses 2014 data from nine Chinese provinces to test farmers’ financial behavior change between land management rights transfer-out and transfer-in. Results from doubly-robust estimator with inverse probability weighting estimator, regression-adjustment, and propensity score matching indicate a significant difference of financial selection between land transfer-in farmers and land transfer-out farmers. Land market gives an unblocked transmission channel to rural financial market through mechanism innovation.
    Keywords: Key words: doubly-robust estimator, financial impact, land management right, land transfer-in, land transfer-out, International Development, Land Economics/Use, JEL Classification: C01, Q15,
    Date: 2017–02–18
  14. By: Lawani, Abdelaziz; Reed, Michael; Fiamohe, Rose
    Abstract: Following the food price crisis of 2007-2008 many governments has responded with food reserve/stock programs. The role of those programs is to regulate price levels and reduce price volatility. These programs have been controversial for many decades because of the cost associated with their implementation and their effectiveness to regulate and stabilize prices. The present research uses the food reserve program implemented by the Benin government from 2008 to 2016 following the food prices crisis of 2007-2008 as a natural experiment to test the impact of such programs on prices levels and volatility. Using the model of competitive storage as theoretical background and the exponential generalized autoregressive conditional heteroskedastic (EGARCH) regression model as an estimation method, the study shows that the food reserve program has not been effective in regulating prices level and in stabilizing prices on rice market in Benin.
    Keywords: Asymmetric EGARCH, Stabilization program, Competitive commodity storage model, Benin, Agricultural and Food Policy, Demand and Price Analysis, Food Security and Poverty, International Development, Q18, Q17, F14,
    Date: 2016
  15. By: Ji, Xinde; Cobourn, Kelly M.
    Keywords: Irrigation Districts, Prior Appropriation, Land Use, Agricultural and Food Policy, Land Economics/Use, Resource /Energy Economics and Policy, Risk and Uncertainty, Q25, Q15, Q18,
    Date: 2017
  16. By: Akash Malhotra; Mayank Maloo
    Abstract: Over the past decade, the stellar growth of Indian economy has been challenged by persistently high levels of inflation, particularly in food prices. The primary reason behind this stubborn food inflation is mismatch in supply-demand, as domestic agricultural production has failed to keep up with rising demand owing to a number of proximate factors. The relative significance of these factors in determining the change in food prices have been analysed using gradient boosted regression trees (BRT), a machine learning technique. The results from BRT indicates all predictor variables to be fairly significant in explaining the change in food prices, with MSP and farm wages being relatively more important than others. International food prices were found to have limited relevance in explaining the variation in domestic food prices. The challenge of ensuring food and nutritional security for growing Indian population with rising incomes needs to be addressed through resolute policy reforms.
    Date: 2017–01
    Abstract: Primary commodity production and exports are the primary drivers of growth in SSA. Thus, value-added agriculture and the resulting market linkages to other sectors are limited. These limitations constrain the ability of SSA to lift its population out of poverty. To evaluate the contributors to growth, we apply the augmented Solow growth model using a system GMM approach. The two findings of this analysis are value-added agriculture contributes substantially to GDP and overall human development in SSA and the total effect of the agricultural sector exceeds that of the non-agricultural sector, suggesting the need for developing countries in SSA to promote market linkages for economic transformation.
    Keywords: Value-added Agriculture, Economic growth, Human Development, Sub-Saharan Africa, International Development, Research Methods/ Statistical Methods, O11, O15, O55, Q19,
    Date: 2016
  18. By: Vicente Pinilla (Universidad de Zaragoza and IA2); Agustina Rayes (Universidad Nacional del Centro de la Provincia de Buenos Aires and CONACYT)
    Abstract: The objective of this paper is to explain, from a cliometric perspective, the determinants of the growth of Argentina’s exports between 1880 and 1929. To do this, we have constructed a gravity model with the principal products exported each year by Argentina to its most important trading partners. In this way, we believe that this study constitutes a relevant and original contribution to the analysis of economic growth from a historical perspective and specifically in explaining the factors determining the export success of the settler countries during the first wave of globalisation. Our results show that Argentina’s export-led growth must be explained from both the supply and demand sides. We also find that the reduction in transatlantic transport costs boosted exports.
    Keywords: Settler Economies, Economic History of Argentina, First Globalization, Trade Gravity Models, Latin America Economic History
    JEL: F14 N56 N76 Q17
    Date: 2017–01
  19. By: Francisco Fontes; Charles Palmer
    Abstract: This paper examines whether patterns of cattle intensification, deforestation and pasture expansion in the Brazilian state of Rondonia are consistent with the land rent framework, in which location and distance to markets are key determinants of rents. A panel dataset of household lots, collected between 1996 and 2009, is used to test the hypothesis that the further a household is from market the more likely it will extensify cattle production, deforest, and expand pasture in response to rising demand for beef and milk. Results from a fixed effects model suggest empirical support for the theory. Pasture area is significantly increasing while forest is significantly decreasing in lots located further away from the market relative to those closer to the market. Patterns of land use differ, however, depending upon the forest type and commodity considered. Primary forest may be ‘spared’ closer to market though perhaps at the cost of greater conversion of secondary forest. Households with greater endowments of forest tend to deforest more than those with smaller ones.
    Date: 2017–01
  20. By: Parkpoom Pichhannaronk; Apichart Daloonpate; Santi Sanglestsawai Author-Email : - (Department of Agricultural and Resource Economics,Faculty of Economics,Kasetsart University,Thailand)
    Abstract: This paper aimed to evaluate farmers’ preferences on condition attributes in a manufacturing pineapple sale contract. Data were collected from 300 pineapple farmers in Rayong province in the cropping season 2015 using paper-based questionnaires. Conjoint analysis model was employed to analyze the attribute ranking. Consequently, farmers were grouped by using cluster analysis in order to study attribute ranking for each group. The analytical results revealed that farmers’ preferences were affected respectively by coverage-crop insurance option, price option, contract quantity and input supply arrangement. Finally, the attribute set that was found to obtain the highest total utility included guaranteed minimum prices, total quantity purchase and partial coverage-crop insurance. The farmers were segmented in 2 groups due to their preferences. The first group of farmers mostly had their planted areas between 20-40 rais and attended at least one training program concerning agricultural knowledge. The most important attribute of the first group was coverage-crop insurance option. Most of the second-group farmers had a small area planted and never attended the training. The price option was the most importance attribute for the second group. The suggestion from this study was that farmers, pineapple manufacturers and related government sectors jointly set a reasonably minimum guaranteed price that is consistent to the cost of production. Moreover, coverage-crop insurance could be added in a manufacturing pineapple sale contact in order to increase the farmers' confidence in their production.
    Keywords: Farmers’ preferences, Manufacturing Pineapple, Conjoint Analysis
    JEL: Q10 Q13
    Date: 2017–01
  21. By: Gwendoline Promsopha (LEST - Laboratoire d'économie et de sociologie du travail - AMU - Aix Marseille Université - CNRS - Centre National de la Recherche Scientifique)
    Abstract: This paper uses data collected in Thailand among permanent rural-urban migrants to analyse the motivations in land temporary transfers such as free loans or rentals. Land transfers are here looked at in a continuum and categorized according to three characteristics: the nature of the relationship between the parties of the exchange, the monetary nature of the payment as well as its explicit or imlicit nature. This methodology allows a richer typology than traditionnally used in empiric literature, and distinguishes between various loans that are not always free. The empirical results show that land loans are frequently chosen by households who rely heavily on traditional risk-sharing networks and credit land with a high safety net value. Morevore, the statistical analysis reveal the significance of hybrid transfers such as disguised rental, that combine both rent-seeking and risk-coping motivations. Overall, the paper underlines the importance of risk-coping motivations in the design of land temporary transfers.
    Keywords: Land tenure, land markets, Thailand, rural economy, non-market transfer
    Date: 2016–12–05
  22. By: Diego Restuccia; Raül Santaeulàlia-Llopis
    Abstract: Using detailed household-level data from Malawi on physical quantities of outputs and inputs in agricultural production, we measure total factor productivity (TFP) for farms controlling for land quality, rain, and other transitory shocks. We fi that operated land size and capital are essentially unrelated to farm TFP implying substantial factor misallocation. The aggregate agricultural output gain from a reallocation of factors to their efficient use among existing farmers is a factor of 3.6-fold. We directly link factor misallocation to severely restricted land markets as the vast majority of land is allocated by village chiefs and not marketed. In particular, the output gain from reallocation are 2.6 times larger for farms with no marketed land than for farms that only operate marketed land.
    Keywords: misallocation, land, Productivity, agriculture, Malawi, micro data
    JEL: O1 O4
    Date: 2017–02
  23. By: James, L.; Glynn, T.
    Keywords: beef imports, cost function, cost shares, ground beef, Demand and Price Analysis, Marketing, Production Economics, Q11,
    Date: 2017
  24. By: Breen, Benjamin; Curtis, John; Hynes, Stephen
    Abstract: This study combines routinely collected water quality data from Ireland and an on-site survey of waterway users to evaluate how water quality affects trip days demanded for recreational activities. Water quality measures employed in the analysis include Water Framework Directive (WFD) ecological status as well as several physio-chemical measures. The analysis finds some evidence that higher levels of recreational demand occur at sites with the highest quality metric measures. However, in many of the estimated models there is no statistical association between the water quality metric (e.g. WFD status, BOD, ammonia, etc.) and the duration of the recreational trip. As most sites considered in the analysis have relatively high levels of water quality this result possibly suggests that above an unspecified threshold level that water quality is not a significant determinant of recreational trip duration. Model estimates also reveal a relatively high valuation among participants for water-based recreational activity with an estimate of mean willingness to pay equivalent to €204/day
    Date: 2017–01
  25. By: AfDB AfDB
    Date: 2017–02–06
  26. By: Gravert, Christina (Department of Economics, School of Business, Economics and Law, Göteborg University); Kurz, Verena (Department of Economics, School of Business, Economics and Law, Göteborg University)
    Abstract: We test the effect of framing of a menu on the choice of ordering climate friendly dishes in a randomized controlled experiment. Rearranging the menu in favor of vegetarian food has a large and significant effect on the willingness to order a vegetarian dish instead of meat. We show that there exists a considerable marginal group willing to change meat consumption behavior at least in the short term. Our results demonstrate both to policy makers and to actors in the food service sector that small, cheap interventions can significantly decrease carbon emissions from food consumption.
    Keywords: Nudging; Field experiment; default; food choice
    JEL: C93 D12 Q50
    Date: 2017–02
  27. By: Gómez-Zaldívar, Manuel; Mosqueda, Marco T.; Duran, Jazmin A.
    Abstract: We document how the localization of production in Mexico’s range of manufacturing subsectors and the specialization of its states have evolved as a result of the process of trade opening. We use the global estimate methodology to calculate the extent to which all industries are localized or all regions specialized. The results show that: i) since 1993, there has been an increase in global localization and specialization in manufacturing production; (ii) transportation equipment, chemicals, and food products account for the greatest share of the overall increase in localization during this period; (iii) those states closest to the US contributed most to the overall increase in specialization.
    Keywords: Industrial Localization; Regional Specialization; Economic Integration
    JEL: F15 R11 R12
    Date: 2017–01–30
  28. By: Martin Chalkley (Centre for Health Economics, University of York, York, UK.); Andrew Mirelman (Centre for Health Economics, University of York, York, UK.); Luigi Siciliani (Department of Economics and Related Studies, University of York, York, UK.); Marc Suhrcke (Centre for Health Economics, University of York, York, UK.)
    Abstract: Pay for Performance (P4P) arrangements, which are fixtures of health systems in high-income countries (HIC), have been deployed across many low- and middle-income country (LMIC) settings as well. P4P programs in HICs have typically addressed the challenge of ‘over delivery’, controlling costs while maintaining adequate services and getting the best clinical practice, or quality of care. In LMICs, health systems are similarly concerned with issues of quality, but they may also grapple with problems of low demand, lack of resources and poor governance. By revisiting the overall framework for understanding P4P arrangements, their benefits and their risks in the context of healthcare delivery, this paper draws on experiences with P4P in HIC to assess how the insights from economic theory apply in practice in LMICs. Issues of programme design and unintended consequences are summarized and LMIC case examples of where these concepts apply and are missing from the evidence of P4P programs in LMIC settings are also reviewed. The evidence on P4P in LMICs is still in its infancy, both in terms of evidence of impact (especially as far as health outcomes are concerned), and in in terms of the attention to potential unintended consequences. However, it is critical to return to basic economic understanding of how the contractual arrangements and incentives of P4P inform program design and ultimately impact health outcomes and service delivery.
    Date: 2016–12
  29. By: Nkechi S. Owoo; Monica P. Lambon-Quayefio
    Abstract: The paper explores the potential of Ghana’s agro-processing industry in contributing to the development and structural transformation of the economy. Although the industry is not well advanced, a number of factors are discussed which make it a viable sector to lead the economy towards sustainable development. The paper documents the evolution of the agro-processing industry, in addition to its contribution to the economy. The importance of government policy and interventions in mitigating challenges faced by the industry is also discussed. Finally, value-chain processes and case studies are provided for key agro-processing sub-sectors of the industry.
    Keywords: agro-processing industry, economic growth, value-chain, Ghana, case study
    Date: 2017
  30. By: Phumzile Ncube; Simon Roberts; Tatenda Zengeni; Paul C. Samboko
    Abstract: This paper considers findings of studies analysing the development of a regional animal feed to poultry value chain in southern Africa (Botswana, South Africa, Zambia, Zimbabwe). The southern African regional poultry value chain is underdeveloped, although important changes include investments by South Africa-based multinational firms and strong growth in Zambia. Building on this growth requires coherent trade and industrial policies supporting investments across countries and practical measures to reduce barriers to intra-regional trade and transport costs. The potential to develop a regional poultry value chain is substantial, considering that the South African deep-sea trade deficit in poultry is larger in size than the Zambian industry.
    Keywords: value chain, southern Africa, poultry, trade policies, industrial policies, case study
    Date: 2017
  31. By: Robinson, Lisa A. (Harvard University); Viscusi, W. Kip (Vanderbilt University); Zeckhauser, Richard J. (Harvard University)
    Abstract: Governments often require that products carry warnings to inform people about risks. The warnings approach, as opposed to the command and control approach to risk regulation, functions as a decentralized regulatory mechanism that empowers individuals to make decisions that take into account their own circumstances and preferences. Thus, individuals will be aware of the risks and the value of taking precautions, and they may avoid a product that others consume if they find the risk unacceptable. Ideally, warnings would allow individuals to assess both their personal level of risk and the benefits they will receive from another unit of consumption. Then those receiving positive expected benefits will consume more; those receiving negative net benefits will curtail their consumption. Only Pangloss would be happy with the current warning system. It fails miserably at distinguishing between large and small risks; that is to say between wolves and rabbits. Such a system is of little value, since people quickly learn to ignore a warning, given that rabbits, which pose little danger, are many times more plentiful than wolves. When a wolf is truly present, people all too often ignore the warning, having been conditioned to believe that such warnings rarely connote a serious threat. We illustrate the clumsy-discrimination issue with examples related to cigarette labeling, mercury in seafood, trans fat in food, and California's Proposition 65. We argue that the decision to require a warning and the wording of the warning should be designed in a manner that will lead consumers to roughly assess their accurate risk level, or to at least distinguish between serious and mild risks. Empowering individuals to make appropriate risk decisions is a worthwhile goal. The present system fails to provide them with the requisite information.
    Date: 2016–09
  32. By: Sandoval, Luis; Carpio, Carlos E
    Abstract: Food security is a multi-dimensional concept and requires a set of indicators to properly measure it. However, single food security indicators are often used without any attention to the food security dimension in which they operate. The misuse of individual food security indicators can have important implications for policy design and implementation. The main objective of this study is to compare two alternative food security indicators: 1) to measure the prevalence of food insecurity in a country, 2) to conduct food security profiling assessments, and 3) to evaluate the potential impact of a cash transfer policy. The two food security indicators considered are the Latin America and Caribbean Food Security Scale, and a food security indicator based on daily per capita food energy available calculated using household expenditure surveys. Data for the study comes from the 2011 Survey of Living Standards from Guatemala. Our results indicate large discrepancies in the estimated prevalence of food insecurity in the country. The regions with the highest levels of incidence of food insecurity, the profile of food insecure households, and the simulated potential impact of a cash transfer policy also differ depending on the indicator used.
    Keywords: ELCSA, Household Expenditure Surveys, Food security, Guatemala, undernourishment, Agricultural and Food Policy, Food Consumption/Nutrition/Food Safety, Food Security and Poverty,
    Date: 2017–02
  33. By: Kosse, Elijah; Devadoss, Stephen
    Abstract: This study develops a three-county trade model of the United States, Mexico, and Canada to analyze the effects of the 2013 Suspension Agreement on prices, production, consumption, trade flows, and welfare in each country due to the U.S. minimum import price on Mexican tomatoes. While only the United States and Mexico are signatories to the agreement, Canada was also included since the U.S. minimum price distorts prices across the region. Three tomato categories—field, greenhouse, and cherry & grape—are studied since each has a distinct minimum price. The overall welfare effects are positive for Mexico and Canada, but negative for the United States.
    Keywords: Canada, Mexico, Tomato Trade Agreement, the United States, Welfare Analysis, International Relations/Trade, F13, F14,
    Date: 2016
  34. By: J. Isaac Miller (Department of Economics, University of Missouri)
    Abstract: Climate sensitivity relates total radiative forcing from anthropogenic and other sources to global mean temperature, and it depends on both changes in net heat transports and changes in the spatial distribution of temperature anomalies. An energy balance model, an easily implemented statistical methodology, and a supplementary inferential procedure are proposed to estimate local climate sensitivity using the historical record and to assess the contribution to overall climate sensitivity. Results are roughly comparable with extant findings from simulations using more complicated models. In particular, areas over ocean tend to import energy, they are relatively more sensitive to forcings, but they warm more slowly than those over land. Increases in the variation of predicted local temperature anomalies are estimated to be proportional to increases in forcings, and economic implications are discussed.
    Keywords: local climate sensitivity, energy balance model, historical temperature anomaly distributions, partially linear semiparametric model
    JEL: C14 C23 Q54
    Date: 2017–01–31
  35. By: Janzen, Matthew; Coatney, Kalyn; Rivera, Daniel; Harri, Ardian; Busby, Darrell; Groves, Matt
    Abstract: To improve meat quality and consistency, cattle feeders have moved towards implementing marketing strategies based on visual estimates of physiological characteristics (e.g. 0.5 inches backfat). Recognizing that physiological targets will not necessarily result in profit maximization; this research aims to develop a market timing method accounting for animal growth, output price and cost dynamics to enhance the likelihood of maximizing profit on an individual basis. A natural field experiment in Iowa is utilized to evaluate the potential for the new methodology. One hundred twenty three cattle are randomly assigned into each treatment. The first treatment consists of marketing an individual when it attains a visual estimate of 0.5 inches of backfat (EPM). The second treatment consists of marketing an individual when its value of the marginal product equals marginal factor costs (PMR). Profit between treatments is compared utilizing three methods: realized, uniform carcass base price, and uniform cash prices.
    Keywords: Fed Cattle, Dynamic Growth, Marketing, Experiment, Agribusiness, D24, C44, C99,
  36. By: Mikhail Miklyaev (JDINT’L Executive Programs Department of Economics, Queen’s University, Canada and Cambridge Resources International Inc.); Shahryar Afra (Cambridge Resources International Inc.); Melani Schultz (International Development Group)
    Abstract: This paper presents the findings of the CBA of Rwanda’s work with the dairy value chain (VC). The analysis looks at evaluating the recent Feed the Future (FtF) activities implemented under the Rwanda Dairy Competitiveness Program II (RDCP II). It was discovered that the USAID investments have resulted in an increase in the annual incomes of dairy farmers by more than 40%. The analysis has also revealed that because of project interventions, the VC has reached a stage when investments in dairy farming are financially feasible without government or other donors support. The consumer gains are estimated at US$ 18.83 million. Following the successful piloting of activities aimed at boosting domestic production of butter, cheese, and yogurt under the RDCP II project, it is recommended that future USAID interventions focus on increasing the market for raw milk.
    Keywords: cost-benefit analysis, investment appraisal, stakeholder analysis, dairy value chain, marketing, Rwanda.
    JEL: D13 D31 D61 D62 E23 H42
    Date: 2017–02
  37. By: Matranga, Andrea
    Abstract: During the Neolithic Revolution, seven populations independently invented agriculture. In this paper, I argue that this innovation was a response to a large increase in climatic seasonality. In the most affected regions, hunter-gatherers abandoned their traditional nomadism in order to store food and smooth their consumption. Their new sedentary lifestyle greatly simplified the invention and adoption of agriculture. I present a model that captures the key incentives for adopting agriculture, and I test the resultant predictions against a global panel dataset of climate conditions and Neolithic adoption dates. I find that invention and adoption were both systematically more likely in places with higher seasonality. The findings of this paper imply that seasonality patterns 10,000 years ago were amongst the major determinants of the present day global distribution of crop productivities, ethnic groups, cultural traditions, and political institutions.
    Keywords: Neolithic, Agriculture, Technological Progress
    JEL: N50 O33 O44
    Date: 2017–02–05
  38. By: Mueller-Langer, Frank; Fecher, Benedikt; Harhoff, Dietmar; Wagner, Gert G.
    Abstract: Replication studies are considered a hallmark of good scientific practice. Yet they are treated among researchers as an ideal to be professed but not practiced. To provide incentives and favorable boundary conditions for replication practice, the main stakeholders need to be aware of what drives replication. Here we investigate how often replication studies are published in empirical economics and what types of journal articles are replicated. We find that from 1974 to 2014 less than 0.1% of publications in the top-50 economics journals were replications. We do not find empirical support that mandatory data disclosure policies or the availability of data or code have a significant effect on the incidence of replication. The mere provision of data repositories may be ineffective, unless accompanied by appropriate incentives. However, we find that higher-impact articles and articles by authors from leading institutions are more likely to be subject of published replication studies whereas the replication probability is lower for articles published in higher-ranked journals.
    Keywords: Replication; economics of science; science policy; economic methodology
    JEL: A1 B4 C12 C13
    Date: 2017–01–30
  39. By: Kim, GwanSeon; Mark, Tyler; Buck, Steven
    Keywords: Crop Production/Industries, Environmental Economics and Policy, Farm Management, Production Economics, Research Methods/ Statistical Methods,
    Date: 2017
  40. By: Merritt, Meagan; Lewis, Karen; Griffith, Andrew; Jensen, Kimberly
    Keywords: Beef Cattle Attributes, Consumer Willingness to Pay, Choice Experiment, Consumer/Household Economics, Demand and Price Analysis, Marketing, Q10, Q13,
    Date: 2017–02
  41. By: Mikhail Miklyaev (JDINT’L Executive Programs Department of Economics, Queen’s University, Canada and Cambridge Resources International Inc.); Majid Hashemi (Cambridge Resources International Inc.); Melani Schultz (International Development Group)
    Abstract: This paper presents the findings of the CBA of Liberia’s work with rice and goat value chains (VCs), specifically evaluating the recent Feed the Future (FtF) activities implemented under the Food and Enterprise Development program (FED). The Integrated Investment Appraisal (IIA) methodology is used to evaluate both the financial and the socio-economic effectiveness of FED interventions and assess their impacts from various perspectives. In conclusion, the ENPV of FED project once the USAID cost is included is a negative US$10.19 million, indicating that the benefits of the interventions do not outweigh the costs. The ERR is only 7.6 percent, which is 4.4 percent lower than the threshold of 12 percent set by USAID. The recent Ebola outbreak and other factors including the high logistical costs in Liberia contributed to the negative returns of FED interventions.
    Keywords: cost-benefit analysis, investment appraisal, stakeholder analysis, rice and goat value chain, Liberia
    JEL: D13 D31 D61 D62 E23 H42
    Date: 2017–01
  42. By: Cheng, Guo; Dharmasena, Senarath; Capps, Oral Jr
    Abstract: The purpose of this study is to augment the classical demand model with consumer’s variety-seeking behavior using 2004-2014 weekly Nielsen scanner data for nut products. We introduce an index variable of taste for variety into the Quadratic Almost Ideal Demand System model with pre-committed quantities. Results show that consumers do respond to the price of nut products since the pre-committed quantities only account for 10% of total consumptions. Consumers purchase more tree nut products while seeking variety, including pecan, walnut, and pistachio, and demand interrelationships among nut products change after allowing consumers to compensate through income.
    Keywords: Taste for variety, Nut products, Nielsen data, Demand analysis, Agricultural and Food Policy, Consumer/Household Economics, Demand and Price Analysis, D11 D12,
    Date: 2017–02
  43. By: Regmi, Madhav; Featherstone, Allen M.
    Abstract: In this paper, we use recent demand estimation models for the KFMA dataset to identify the determinants of farm household expenditure patterns and its implications to the main street business. Comparing endogeneity adjusted and unadjusted QUAIDS model estimates, we establish that not accounting for endogeneity leads to the inconsistent demand estimates. Our results show that success of a business operating in farming communities depends on the farm characteristics of that location. We also find that some business benefits by offering the lowest possible cost for their items, while other by increasing the income level of purchasing households through efficient farm production measures.
    Keywords: Farm Household Expenditure, Business, Endogeneity, QUAIDS, Agribusiness, Consumer/Household Economics, Demand and Price Analysis,
    Date: 2017–02–07
  44. By: Huo, Ran; Octavio, Ramirez
    Abstract: Recent years have witnessed a proliferation of weather-index insurance (WII) pilot programs in developing countries. However, the uptake of this novel insurance turns to be generally low despite that most WII programs are heavily subsidized by central and local government. Although basis risk is widely referred to as the most serious drawbacks to the effectiveness of index-based insurance, the impact of basis risk on the potential benefits of adopting weather index insurance is rarely documented. This paper designs a weather index contract for cotton in Shandong province and examines impact of two components of basis risk, covariate risk and idiosyncratic risk, separately. The findings of this paper underscores the importance of minimizing covariate risk in designing weather index insurance contracts and sheds lights on the different impacts of basis risk components on potential benefits of WII.
    Keywords: Weather index insurance, basis risk, China, Agricultural Finance,
    Date: 2017–02–08
  45. By: Wang, Meijuan
    Abstract: We use a difference in difference model to examine the impact of central winter heating on air pollution in China. The estimation includes how does the winter heating affect (i) air quality, and (ii) hazard level of pollutants. Our data are daily Air Quality Index (AQI) records in mid-November when the heat is turned on and mid-March when heat is turned off in over 150 cities. Both Ordinary Least Square (OLS) and Ordered Logit model show that winter heating contributes significantly to air pollution, especially in the period when central heating is switched on. The central heating causes 51.3% higher AQI, and the air is 13% more likely to be hazardous to the sensitive group (hazard level=3). Northern cities are more polluted than southern ones. It is also found that air quality in cities with higher GDP per capita is better; population, number of cars and electricity used by industry also contribute to air pollution.
    Keywords: Air pollution, winter heating, Huai-River policy, urban development, Environmental Economics and Policy, Public Economics, Resource /Energy Economics and Policy, Q53, Q58, R1,
    Date: 2016
  46. By: Minor, John; Russell, Levi; Brewer, Brady
    Abstract: The economic conditions for cotton farmers have been on a downward spiral for the past 4 years. China’s accumulation of stocks, falling world market price, flat demand, and the retraction of direct government payments have made for a situation that have people within the US cotton industry worried about the future. The cotton industry’s current position has renewed calls to support cotton farmers in the US. Policy makers, farmers, and other industry professionals have been working together to propose a potential solution to help farmers in a time of need. This proposal has brought about the idea of a new support program for cotton by classifying cotton as an “other oilseed” and allowing direct government payments. By evaluating the effects and implications of this program may have, this analysis will provide the industry with relevant information on the possible outcomes of implementing this policy.
    Keywords: Agribusiness, Agricultural and Food Policy,
  47. By: Enrico De Angelis (IMT School for advanced studies); Rodolfo Metulini (Department of economics and management, University of Brescia); Vincenzo (Department of politics and international studies, Social science building, University of Warwik); Massimo Riccaboni (IMT School for advanced studies)
    Abstract: n light of growing water scarcity, virtual water, or the water embedded in key water-intensive commodities, has been an active area of debate among practitioners and academics alike. As of yet, however, there is no consensus on whether water scarcity affects conflict behavior and we still lack empirical research intending to account for the role of virtual water in affecting the odds of militarized disputes between states. Using quantitative methods and data on virtual water trade, we find that bilateral and multilateral trade openness reduce the probability of war between any given pair of country, which is consistent with the strategic role of this important commodity and the opportunity cost associated with the loss of trade gains. We also find that the substantive effect of virtual water trade is comparable to that of oil and gas, the archetypal natural resources, in determining interstate conflicts' probability.
    Keywords: Conflicts; International Trade; Water Scarcity; Virtual Water; Strategic Commodities
    JEL: F51 Q25
    Date: 2017–01
  48. By: Wisdom Akpalu; Worku T. Bitew
    Abstract: Most developing countries are increasingly dependent on fresh water based aquaculture (cage culture) to supplement the declining catch from capture fisheries. Yet, the competition for space between capture fisheries and cage culture, pollution generated by cage culture, and fish markets interaction effects have yet to be clearly conceptualized in a bioeconomic framework. Furthermore, the economic viability of cage culture depends on substantial investment thresholds, engendering foreign direct investment in the industry in developing countries. This paper develops a conceptual model for fresh water based aquaculture that account for (i) space allocation, pollution, and interaction of markets for fish; and (ii) foreign capital financing aquaculture production. We found that a Pigouvian tax (optimum ad valorem tax) that corrects the externalities depends on economic and biological parameters in aquaculture and capture fisheries. Correcting for the externalities results in a reduction in aquaculture production but not optimum wild catch. Furthermore, if the aquaculture is financed with foreign capital, then the Pigouvian tax equals the ratio of net to total benefit from aquaculture. Numerical values are used to illustrate the results.
    Keywords: aquaculture, externalities, Pigouvian tax, ad valorem tax
    Date: 2017
  49. By: Kozicka, Marta; Weber, Regine; Kalkuhl, Matthias
    Abstract: Despite the large-scale antipoverty programs, especially food and nutrition programs, 15 per cent of Indian population is undernourished. India’s current implementation of the world largest food aid program, the National Food Security Act (NFSA), experiences many challenges and needs rigorous analysis. Current study analyzes consumption patterns of wheat and rice delivered through the Public Distribution System in India. Further, impact of the subsidy on market grain consumption is quantified. The household consumption analysis using cross-sectional econometric techniques reveals targeting errors of the Public Distribution System. There is a negative self-selection of the richer households; however the migrant workers and female-led households are not well covered. The Above Poverty Line quota seems to have higher leakage rate, which strongly affects consumption of the subsidized grains. For the Below Poverty Line cardholders, subsidized grains are imperfect substitutes for the market grains. Further, subsidized grains are found to increase total consumption of wheat and rice. Because of high targeting errors, higher total demand for wheat and rice might result in higher market prices and have negative consequences for the poor excluded from the system. To our knowledge, this is the first empirical analysis of the various targeting errors and reasons for under-purchase on all India level. The results further contribute to the growing evidence that the PDS crowds in consumption of wheat and rice.
    JEL: D12 D45 I38
    Date: 2016
  50. By: JONES, Jonathan (Université catholique de Louvain, CORE, Belgium); PEETERS, Dominique (Université catholique de Louvain, CORE, Belgium); THOMAS, Isabelle (Université catholique de Louvain, CORE, Belgium)
    Abstract: The aim of this paper is to assess the reliability of policy evaluation based on Land Use and Transport Interactions models, relative to the choice of the Basic Spatial Units. An UrbanSim (+ MATsim) model applied to Brussels (Belgium) is used as the case study. The evolution of the study area over ten years is forecasted for four levels of Basic Spatial Units and five scenarios (business-as-usual and four alternatives). Results show larger variations between Basic Spatial Units levels than across scenarios. These findings are valid for various sustainability indicators and for a simple cost-benefit analysis aiming at ranking the scenarios. The direction of the variations resulting from the implementation of the scenarios remains, however, the same for all Basic Spatial Units levels. Hence, the influence of the scale on policy evaluation based on Land Use and Transport Interactions models appears limited when it is only intended to compare scenarios, but it will have a crucial role when evaluations are based on absolute variations or threshold values.
    Keywords: Brussels, LUTI models, MAUP, Policy evaluation
    Date: 2016–09–01
  51. By: John Creedy (The Treasury)
    Abstract: This paper demonstrates the potential importance, when considering total calorie intake, of allowing for the substitution effects of imposing a selective tax on a commodity having a high sugar content, when non-taxed commodities exist and also have relatively high calorie content. A framework is presented which allows the elasticity of calorie consumption with respect to a price change to be derived. This brings out the role of relative budget shares, relative calorie content of goods and relative prices to be clearly seen, along with own- and cross-price elasticities. Their absolute values for each commodity group are not required. It is demonstrated that the focus of attention needs to be much wider than a simple concentration on the own-price elasticity of demand for the commodity group for which a sumptuary tax is envisaged.
    Keywords: Sugar-sweetened beverage; calorie intake; demand elasticity
    JEL: I10 H2 H31
    Date: 2016–12
  52. By: Lopez, Jose; Bankole, Taiwo; Wahrmund, Jackie
    Abstract: The U.S. has the largest fed cattle industry in the world (USDA-NASS, 2016) and makes about $10.5 billion dollars in cash receipts from beef cattle sales (Texas Department of Agriculture, 2015). Our study analyzes sales of pre-conditioned calves from 22 auctions between 2010 and 2013 in Northeast Texas, determines which intrinsic quality attributes add most value, and examines the extent to which physical attributes along with the futures market help explain variation in feeder cattle prices. Our results showed that lot size, weight, sex, breed, and feeder cattle futures prices are all statistical significant factors affecting feeder cattle cash prices. A unit gain in weight resulted in a very slight discount, heifers were discounted compared to steers, and the English breeds received premiums over crossbreds. Feeder cattle cash and futures price were positively associated with the October futures contract providing the largest bump to cash prices. Understanding of the quality attributes and the relationship between feeder cattle cash and future prices may assist local producers in formulating price risk management strategies that have implications on profitability.
    Keywords: auction data, feeder cattle, futures market, hedonic analysis, Agribusiness, Demand and Price Analysis, Farm Management, Livestock Production/Industries, Q110, Q210,
    Date: 2017–02–18
  53. By: Regmi, Madhav; Featherstone, Allen M.
    Abstract: This paper examines the impact of energy price shocks within the U.S. to the corn market prices both in the U.S. and in the world. It allows for structural breaks and identifies the price volatility in the corn markets before and after energy policy changes within the U.S. in 2005 and 2007. In particular, this paper develops structural VAR model and a structural VECM model respectively for the series before and after policy change. Results indicate that there is a substantial difference in the dynamic response of corn prices to an ethanol price shock after the policy change. Findings also suggest that an ethanol price shock is more important and persistent than a gasoline price shock while explaining the corn price volatility in corn markets.
    Keywords: SVAR, SVECM, Energy Policy, Energy Price, Corn Price, Agricultural and Food Policy, Research Methods/ Statistical Methods, Resource /Energy Economics and Policy,
    Date: 2017–02–06
  54. By: Mendez, David F.; Hughes, David W.; Yu, T. Edward; Griffith, Andrew P.
    Keywords: Location Programming, Dairy Processing, Local Food Supply, Agribusiness, Industrial Organization, Livestock Production/Industries,
    Date: 2017
  55. By: Jakob, Michael; Kübler, Dorothea; Steckel, Jan Christoph; van Velduizen, Roel
    Abstract: Although market-based environmental policy instruments feature prominently in economic theory and are widely employed, they often meet with public resistance. We argue that such resistance may be driven by a feeling of moral responsibility where citizens prefer to tackle environmental problems themselves, rather than delegating the task to others by means of a market mechanism. Using a laboratory experiment that isolates moral responsibility from alternative explanations, we show that moral responsibility induces participants to incur a sizable cost on themselves as well as on other participants. We discuss the implications of this finding for the design and implementation of environmental policies.
    Keywords: Laboratory Experiment,Moral Responsibility,Environmental Policy,Market Mechanism,Climate Change
    JEL: C90 H23 Q53 Q54 Q58
    Date: 2016
  56. By: Ha, Sang su; Welch, J. Mark; Anderson, David P.
    Keywords: Resource /Energy Economics and Policy,
    Date: 2016
  57. By: Bolotova, Yuliya V.; Smith, Nathan B.
    Keywords: Agribusiness, Agricultural and Food Policy, Marketing,
    Date: 2017–01
  58. By: Frierson, McCauley; Vassalos, Michael; Beecher, Lance
    Abstract: According to NOAA, imports account for over 90% of the value of seafood consumed in the US. The resulting trade deficit is more than $11 billion, and is expected to increase as demand for seafood products is increasing. Aquaculture can help reduce this deficit, create jobs, and support local economies. However, currently, aquaculture is a relatively small industry in the US. Land Grant institutions can educate consumers and producers, thus helping with the development of the industry. In addition to fulfilling their educational goals, universities may also benefit economically from the development of aquaculture facilities. The present study utilizes the Net Present Value (NPV) framework with Monte Carlo simulations to evaluate the economic viability of Clemson’s Aquaculture Center. The findings indicate that even with a 25% increase in the price of catfish and tilapia, the facility will still be profitable. However, there is a likelihood that the facility will not be profitable, if the initial investment cost exceeds $1,000,000, or the price of tilapia declines to below $2.79.
    Keywords: Aquaculture, Net Present Value, Monte Carlo Simulation, Clemson Aquaculture Facility, Agribusiness, Farm Management, Q12, Q22,
    Date: 2016
  59. By: Gutierrez, Elizabeth; Zereyesus, Yacob; Ross, Kara; Amanor-Boadu, Vincent
    Abstract: Natural disasters, economic crisis, human-induced disasters and scarcity of resources are realities that people face on a daily basis. It is under these circumstances that the term resilience becomes important, especially, in areas where food insecurity and poverty prevail such as northern Ghana. The present study uses FAO’s Resilience Index Measurement and Analysis (RIMA) model to measure the Resilience Level of northern Ghana and determine the main factors contributing to that level. Results show that the latent variable, Resilience, is representative of the five pillars used to denote resilience. Basic Services, Adaptive Capacity, and Income and Food Access indicators are pillars associated with improved resilience in northern Ghana. Assets, and Social Safety Nets are pillars negatively associated with the latent resilience level.
    Keywords: resilience, northern Ghana, poverty, food insecurity, Agricultural and Food Policy, Food Security and Poverty, International Development,
    Date: 2017–02–04
  60. By: Wang, Youzhi; Delgado, Michael S.; Marshall, Maria I.; Dobbins, Craig L.
    Keywords: family farm business, succession planning, generational shadow, generational conflict, Agribusiness, D12 D13 D14,
    Date: 2018
  61. By: Russell, Levi A.; Buono, Gabrielle; Duggin, Jason; Segers, Jacob R.
    Keywords: Farm Management, Livestock Production/Industries, Marketing,
    Date: 2017

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