nep-agr New Economics Papers
on Agricultural Economics
Issue of 2017‒05‒28
twenty-two papers chosen by

  1. The Value of Biodiversity as an Insurance Device By Emmanuelle Augeraud-Véron; Giorgio Fabbri; Katheline Schubert
  2. Assessing the Competitive Advantage of Public Policy Support for Supply Chain Resilience By Eiji Yamaji
  3. Conservation of Genetic Resources of Crops: Farmer Preferences for Banana Diversity in Sri Lanka By Wasantha Athukorala; Muditha Karunarathna
  4. Development of Mechanisms for Embedding Small Forms of Management in Food Chains By Shagaida, Natalia; Gataulinà, Ekaterina; Uzun, Vasily; Yanbykh, Renata
  5. Macroeconomic Trends and Factors of Production Affecting Potato Producer Price in Developing Countries By Salmensuu, Olli
  6. Crop Insurance in the European Union: Lessons and Caution from the United States By Ramsey, Austin Ford; Santeramo, Fabio Gaetano
  7. Decentralization and Efficiency of Subsidy Targeting: Evidence from Chiefs in Rural Malawi By Pia M. Basurto; Pascaline Dupas; Jonathan Robinson
  8. Where gathering firewood matters: Proximity and forest management effects in hedonic pricing models for rural Nepal By Mani Nepal
  9. How Transaction Costs Obstruct Collective Action: Evidence from California’s Groundwater By Andrew B. Ayres; Eric C. Edwards; Gary D. Libecap
  10. Ecological transitions within agri-food systems: a Franco-Brazilian comparison By Claire Lamine; Gilles Maréchal; Moacir Darolt
  11. On the Current Account - Biofuels Link in Emerging and Developing Countries: Do Oil Price Fluctuations Matter? By Gabriel Gomes; Emmanuel Hache; Valérie Mignon; Anthony Paris
  12. Are All Shifting Cultivators poor? Evidence from Sri Lanka's Dry zones By Prabath Nishantha Edirisinghe
  13. Convincing early adopters: Price signals and Information transmission By Nicolás Figueroa; Carla Guadalupi
  14. Adoption of Environmental Management Practices in the Hotel Industry in Sri Lanka By Kanchana Wickramasinghe
  15. Multinational and large national corporations and climate adaptation: are we asking the right questions? A review of current knowledge and a new research perspective By Alina Averchenkova; Florence Crick; Adriana Kocornik-Mina; Hayley Leck; Swenja Surminski
  16. Working Paper 255 - Competition and industrial policies relating to food production in southern Africa By AfDB AfDB
  17. Reducing Siltation and Increasing Hydropower Generation from the Rantambe Reservoir,Sri Lanka By E.P.N. Udayakumara; U.A.D.P. Gunawardena
  18. Innovation-Led Transitions in Energy Supply By Derek Lemoine
  19. Contingent Employment and Labour Market Pathways: Bridge or Trap? By McVicar, Duncan; Wooden, Mark; Fok, Yin King
  20. Working Paper 260 - Transforming Traditional Agriculture Redux By AfDB AfDB
  21. Working Paper 259 - Structural Transformation and Food Security: Their Mutual Interdependence By AfDB AfDB
  22. Voluntary Management of Fisheries under an Uncertain Background Legislative Threat By Anne-Sarah Chiambretto; Hubert Stahn

  1. By: Emmanuelle Augeraud-Véron (MIA - Mathématiques, Image et Applications - ULR - Université de La Rochelle); Giorgio Fabbri (GREQAM - Groupement de Recherche en Économie Quantitative d'Aix-Marseille - Université de la Méditerranée - Aix-Marseille 2 - Université Paul Cézanne - Aix-Marseille 3 - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - Ecole Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique); Katheline Schubert (PSE - Paris School of Economics)
    Abstract: This paper presents a benchmark endogenous growth model including biodiversity preservation dynamics. Producing food requires land, and increasing the share of total land devoted to farming mechanically reduces the share of land devoted to biodiversity conservation. However, the safeguarding of a greater number of species is associated to better ecosystem services – pollination, flood control, pest control, etc., which in turn ensure a lower volatility of agricultural productivity. The optimal conversion/preservation rule is explicitly characterized, as well as the value of biological diversity, in terms of the welfare gain of biodiversity conservation. The Epstein-Zin-Weil specification of the utility function allows us to disentangle the effects of risk aversion and aversion to fluctuations. A two-player game extension of the model highlights the effect of volatility externalities and the Paretian sub-optimality of the decentralized choice.
    Keywords: biodiversity,stochastic endogenous growth,insurance value,recursive preferences
    Date: 2017–03
  2. By: Eiji Yamaji
    Abstract: This paper deals with the supply chain resilience of agricultural products in Japan. First, the food flow of Japan is explained. Japanese farmers and fishers produce and sell their products, receiving 9.4 trillion Japanese yen (¥). At the same time, Japan imports raw products and processed food. The fresh products move through the market to the eating out sector, the processing sector, and consumers. During this process, the value of agricultural products increases and consumers pay ¥73.5 trillion. Food flow sometimes suffers disasters, such as heavy rains, flooding, low temperatures, strong winds, volcanic eruptions, earthquakes, and tsunamis. In April 2016, a strong earthquake hit the Kumamoto area, severely affecting the production and supply of watermelons. To increase the resilience of the agricultural supply chain, the sixth industrialisation is effective and well established. Japan's sixth industry contains 60,000 businesses. Most of them are food processing and direct shop businesses. Direct shops are operated by farmers, farmers' groups, farmers' companies, municipalities, cooperatives, and producers' groups. They sell mostly vegetables, fruits, and processed food. Direct shop K is located on the urban fringe of Chiba prefecture. Since it was established in 2004, the shop has become very popular in the region. However, it has had to overcome two crises: the effect of the radioactive fallout from the Fukushima nuclear power plant accident and contamination by residual agricultural chemicals. The manager had a large role in the recovery, but Japan's agricultural policy also provided direct and indirect support at the national and local levels. Public policy supports the resilience of the agricultural supply chain through measures such as agricultural land use planning, agricultural improvement projects, rapid reconstruction following damage, and improvement of agricultural resources.
    Keywords: Public Policy Support, Resilience, Supply Chain, Agricultural Product, the Sixth Industry
    JEL: Q12 Q13 Q18
    Date: 2017–05
  3. By: Wasantha Athukorala; Muditha Karunarathna
    Abstract: This study investigates farmer preferences for banana diversity in Sri Lanka. First, we investigate farmers' attitudes towards banana cultivation in the country. Secondly, we estimate diversity selection models to identify the important factors that contribute to the conservation of banana diversity. The analysis uses survey data covering 450 banana growers in three different districts representing different climatic zones in the country. It employs the Poisson model and OLS for the Shannon Diversity Index to determine the key household, market and other characteristics that are important for the conservation of banana diversity. The studyindicates that maintaining on-farm diversity is receiving increased attention from farmers as a strategy for mitigating production risk and protecting food security in the rural areas of Sri Lanka. The results of the study show that family size, education, experience, method of marketing, and attitude of farmers are the major determinants of banana diversity maintenance on farms. The study recommends a subsidy to farmers to cultivate traditional varieties for the purpose of maintaining farm diversity since farmers are attracted to new varieties for their productivity.
  4. By: Shagaida, Natalia (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); Gataulinà, Ekaterina (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); Uzun, Vasily (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); Yanbykh, Renata (Russian Presidential Academy of National Economy and Public Administration (RANEPA))
    Abstract: The paper assesses the role of small business in Russian agriculture and develops mechanisms for the interaction of small forms of management with integrator companies and agricultural cooperatives. Embedding of small business in vertical chains is revealed on the basis of studying of theoretical bases and practical experience in foreign countries, basically, the US and the Western Europe. The level and limitations of the development of agricultural consumer cooperation in Russia are determined, taking into account the profile and regional specifics. The practice and institutional limitations of the development of contract farming in our country were analyzed.
    Date: 2017–04
  5. By: Salmensuu, Olli
    Abstract: Principal component analysis is performed on 33 mainly agriculture related social variables of 40 developing countries. Important components are also put to explain potato producer price. The analysis reveals that the data set contains macroeconomic trends; economic growth, growing importance of the potato and improving infrastructures for the market economy. Although the coefficients for these trends in affecting potato producer price are not statistically significant, it is noteworthy that their signs are in line with observations from earlier research. Economic growth and increasing potato importance are often accompanied with potato price rising in developing countries, whereas improving infrastructures increase availability of food with lower average prices. Potato producer price is statistically significantly affected by four factors of production: land, labour, capital and technology. Relating potato supply constraints of earlier survey literature to principal component interpretation also revealed primary paths how these macroeconomic inputs are being formed in developing countries. Potato suitability allows more cultivated land and greater production with lower price. Agricultural poverty brings limited alternatives and poor terms of trade for farmers, with abundant labour at low wage rate leading to low potato producer price. Better alternative business lowers capital inflow to agricultural land development, entailing low production and high price. Knowledge increases productivity lowering price.
    Keywords: Principal components, Economic growth, Developing countries, Supply constraints, Factors of production, Agricultural development
    JEL: Q11 Q18 R51 R58 Z12
    Date: 2017–05–16
  6. By: Ramsey, Austin Ford; Santeramo, Fabio Gaetano
    Abstract: Recent changes in the Common Agricultural Policy have focused attention on the possibility of an enlarged crop insurance program in Europe. Several countries in the European Union already have national crop insurance schemes, but the performance of these programs in terms of realized demand has been low. In some cases, participation in the programs remains low in spite of significant subsidies to insurance premiums. This situation can be contrasted with the federal crop insurance program in the United States, which is now the principal instrument of American agricultural policy and insured over 366 million acres in 2015. We focus on two questions: are there any justifications for subsidized crop insurance and how could such a scheme possibly be implemented in the EU? Quantitative and qualitative comparisons of the current state of crop insurance in the EU and US serve to motivate our observations.
    Keywords: Crop Insurance, EU, USA, Insurance scheme
    JEL: D81 G22 Q18
    Date: 2017–01–01
  7. By: Pia M. Basurto; Pascaline Dupas; Jonathan Robinson
    Abstract: Developing countries spend vast sums on subsidies. Beneficiaries are typically selected via either a proxy-means test (PMT) or through a decentralized identification process led by local leaders. A decentralized allocation may offer informational or accountability advantages, but may be prone to elite capture. We study this tradeoff in the context of two large-scale subsidy programs in Malawi (for agricultural inputs and for food) decentralized to traditional leaders (“chiefs”) who are asked to target the needy. Using high-frequency household panel data on neediness and shocks, we find that nepotism exists but has only limited mistargeting consequences. Importantly, we find that chiefs target households with higher returns to farm inputs, generating an allocation that is more productively efficient than what could be achieved through a PMT. This could be welfare improving, since within-village redistribution is common.
    JEL: D73 I38 O12 Q12
    Date: 2017–05
  8. By: Mani Nepal
    Abstract: A majority of rural, agricultural households in Nepal rely on forests for firewood and fodder. Access to the forest clearly matters, but might not be as simple as proximity if quality varies by management and property regime. Using two rounds (2003/2004 and 2010/2011) of nationally representative survey data for rural Nepal, we analyze the impacts of forest proximity and the type of management regimes on housing values. Results from hedonic pricing modelsindicate that when different property rights regimes are ignored, the implicit price of proximity to the forest from where household collects firewood is positive. However, proximity is no longer a significant determinant when the property regime from where a household gathers firewood is considered. Relative to a housing unit that uses a private forest as its primary firewood source, the value of a similar housing unit using a government forest has a 10 percent (2010/11) to 20 percent (2003/04) lower value; the respective percentage reductions for a similar housing unit with community forest source is about 7 to 10 percent. Given limited private forest lands, results offer a measure of support for newly-adopted collaborative and leasehold programs. In the first, government forests are collaboratively managed by local communities with the government, where revenues are shared equally. In the second, degraded government forests are transferred to the rural poor for 40-year terms so that households can conserve and use forest products privately.
  9. By: Andrew B. Ayres; Eric C. Edwards; Gary D. Libecap
    Abstract: Collective action to remedy the losses of open access to common-pool resources often is late and incomplete, extending rent dissipation. Examples include persistent over-exploitation of oil fields and ocean fisheries, despite general agreement that production constraints are needed. Transaction costs encountered in assigning property rights are an explanation, but analysis of their role is limited by a lack of systematic data. We examine governance institutions in California’s 445 groundwater basins using a new dataset to identify factors that influence the adoption of extraction controls. In 309 basins, institutions allow unconstrained pumping, while an additional 105 basins have weak management plans. Twenty of these basins are severely overdrafted. Meanwhile, users in 31 basins have defined groundwater property rights, the most complete solution. We document the critical role of transaction costs in explaining this variation in responses. This research adds to the literatures on open access, transaction costs, bargaining, and property rights
    JEL: K11 N52 P48 Q15 Q25 Q58
    Date: 2017–05
  10. By: Claire Lamine (ECODEVELOPPEMENT - Unité de recherche d'Écodéveloppement - INRA - Institut National de la Recherche Agronomique); Gilles Maréchal (ESO - Espaces et Sociétés - UNICAEN - Université Caen Normandie - UM - Université du Maine - UA - Université d'Angers - UN - Université de Nantes - AGROCAMPUS OUEST - UR2 - Université Rennes 2 - CNRS - Centre National de la Recherche Scientifique); Moacir Darolt (Instituto Agronômico do Parana)
    Abstract: The ecological transition of food systems raises expectations and generates actions, both from public authorities and the civil society. A socio-historical analysis of situated experiences, within a systemic and pragmatic focus, is needed to address the diversity of the transition strategies and understand the mechanisms of change and the conditions of such ecological transition. Four case studies have been selected to analyse and compare such transition processes in France and in Brazil : 2 from rural areas of Southern France (Ardèche and Biovallée) and 2 from urban regions in Brazil and France (Curitiba and Rennes). This compared analysis shows that the transformation of the food system is always the result of complex interactions between a wide range of initiatives and actions, held by diverse and sometimes unexpected players. Those actions can combine and strengthen each other or on the contrary generate conflicts. Appropriate modes of governance are thus needed inside the food system in order to make it desirable and feasible, under environmental, social cultural and economic aspects. The 4 different paths that have been investigated put in evidence two archetypical ways. They rely on differentiated relations between public authorities and the civil society. In all cases, the involvement of civil society has been key to awareness raising and stimulation for food initiatives. But the way this mobilization has been integrated and developed by public authorities deeply differ. In the Southern Ardèche case, the linkages between the farmers’ initiatives and the local policies do not appear strong enough to include the diversity of agrifood actors within a territorial ecological transition path. In the Biovallée and in Rennes, trust and permeability have been built between diverse agricultural and food networks (of farmers, eaters, entrepreneurs) and the decision makers in order to let these different actors collectively take responsibility in the transition process. In the Curitiba case, public intervention has materialized in two ambitious and articulated programmes but it is not really linked to the creativity of social movements.
    Abstract: A partir de l'analyse de 4 études de cas (Sud Ardèche, Biovallée de la Drôme, Rennes Métropole et Curitiba), les auteurs développement une analyse socio-historique des systèmes alimentaires territoriaux. Avec une vision systémique et pragmatique, ils étudient les dynamiques d'acteurs, en particulier entre pouvoirs publics et société civile, qui produisent des voies différenciées de transition.
    Abstract: A partir da análise de quatro estudos de caso (na França Sul Ardèche, Drôme Biovallée, Rennes e Curitiba no Brasil), os autores apresentam uma análise sócio-histórica dos sistemas alimentares territoriais. Com uma abordagem sistémica e pragmática, eles estudam a dinâmica dos atores locais, particularmente as relações entre as autoridades públicas e a sociedade civil, que produzem caminhos de transição diferenciados.
    Keywords: France,Brazil Food strategies,Local food systems,Ecological transition,Systèmes alimentaires territoriaux,Brésil,Transition écologique,Brasil,França,Sistemas alimentares territoriais,Transição agro-ecologica
    Date: 2016–09–23
  11. By: Gabriel Gomes; Emmanuel Hache; Valérie Mignon; Anthony Paris
    Abstract: Many developed countries promote the use of biofuels for environmental concerns, leading to a rise in the price of agricultural commodities utilized in their production. Such environmental policies have major effects on the economy of emerging and developing countries whose activity is highly dependent on agricultural commodities involved in biofuel production. This paper tackles this issue by examining the price impact of biofuels on the current account for a panel of 16 developing and emerging countries, and the potential nonlinear effect exerted by the price of oil on this relationship. Relying on the estimation of panel smooth-transition regression models, we show that positive shocks in the price of biofuels lead to a current-account appreciation for agricultural commodity exporters and producers only when the price of oil is below a certain threshold. When the price of oil exceeds this threshold, fluctuations in the price of biofuels no longer affect the current account. These findings illustrate that a rise in the price of oil exerts a negative effect on the trade balance of commodity exporters which are also oil importers, dampening the biofuel price impact on the current-account position.
    Keywords: Biofuels;Oil;Current Account;Panel Smooth Transition Regression
    JEL: Q16 Q43 F32 C23
    Date: 2017–05
  12. By: Prabath Nishantha Edirisinghe
    Abstract: Shifting cultivation is one of the main causes of deforestation and forest degradation in Sri Lanka. This study uses household data and satellite images to investigate the determinants of shifting cultivation and the potential to control the intensity of this practice. Some 50% of households studied in Monaragala district of Sri Lanka practiced shifting cultivation during the 2011/2012 cultivation season. This practice is largely characterized by a short fallow period, mono cropping and high input use and repeated annual use of the same plot of land.Households practicing shifting cultivation, on average, use less than 1 hectare every year for this activity. Some 59% of shifting cultivation farmers indicated that they had cultivated the same piece of land every year during the 2006-2011 period. The practice is not restricted to poor landless farmers. Regression results show that households that possess more private land and other assets tend to cultivate larger areas of land. Therefore, the contribution of relatively wealthy households to shifting cultivation is more than that of poor households. Furthermore,households with more adult family members in a family tend to cultivate larger areas of shifting cultivation lands. Full-time non-farm occupations are a deterrent to this practice. To reduce the area of shifting cultivation, the study recommends an integrated plan with alternate income generation options for people who may have to give up existing swidden lands.
  13. By: Nicolás Figueroa; Carla Guadalupi
    Abstract: We study the optimal pricing strategy for a new product when consumers learn from both prices and early adopters’ purchase decisions. In our model, a long-lived monopolist faces a representative consumer each period. The monopolist is privately informed about his type, the probability of producing good-quality products. First-period consumers are early adopters, who learn quality before purchasing the product. Second-period consumers learn about product quality only after observing the public history, namely past price and early adopters’ purchase decisions. In this context, prices play a dual role, acting as signals of the firm’s type but also facilitating or impeding information transmission between early adopters and second-period consumers. Our main result is that separation might occur through either high or low prices (with respect to the full-information monopoly price), depending on the elasticity of demand. When demand for good-quality products is less elastic, high prices are less costly for high-type firms due to both a static (through demand) and dynamic (through information transmission) effects. On the one hand, high-type firms are marginally less affected by high prices, since they lose fewer consumers. On the other hand, early sales at higher prices carry good news about quality to second-period consumers, since such sales are more likely to come from a good than from a bad-quality product. The opposite happens occurs when demand for good-quality products is more elastic. We provide two market examples for each case and show that in the case of disruptive (incremental) innovations high (low) prices can be used as signals of quality. We finally discuss consumer welfare under the two resulting alternative equilibria, and show that the observability of early adopters’ purchase decisions improves consumer welfare when separation occurs through high prices.
    JEL: K10 K30 K40
    Date: 2017
  14. By: Kanchana Wickramasinghe
    Abstract: Environmental management has not received the attention that it deserves in the case of the hotel industry in Sri Lanka although sustainable growth in the industry requires consideration of such practices. Our study assesses the adoption of good environmental management practices in the Sri Lankan hotel industry, focusing on energy, water, solid waste and waste water management. The study is based on data from 78 registered hotels in the Western Province of Sri Lanka. We obtained primary data on the environmental management practices using a pretested structured questionnaire. In addition to the cross-sectional data, we collected panel data on electricity consumption from these hotels for 2009-2013. The results show that the highest number of practices, 3.7 on average, adopted by hotels is in energy management. The average number of water management practices is 2.6. Low adoption rates are observed for waste water and solid waste management practices. The results from Poisson and Probit regression models show that the hotel characteristics and customer characteristics are significant determinants of the adoption of good practices with large hotels, chain-affiliated hotels and classified hotels more likely to adopt them. Analysis of electricity consumption shows that the occupancy rate and involvement of the hotels in environment management projects lead to a reduction in electricity consumption. From a policy perspective, small hotels,independent hotels, and unclassified hotels need to be motivated to adopt good environmental management practices through training, capacity building and financial support.
  15. By: Alina Averchenkova; Florence Crick; Adriana Kocornik-Mina; Hayley Leck; Swenja Surminski
    Abstract: Adapting to climate change requires the engagement of all actors in society. Until recently, the predominant research focus has been on governments, communities and the third sector as key actors in the adaptation process. Yet, there is a growing emphasis internationally on understanding the role of and the need to engage businesses in adaptation given their potential to finance projects, develop technologies and innovative solutions, and enhance the scale and cost-effectiveness of certain adaptation measures. Large national and multinational corporations are among the key actors in this respect. Already, many of these corporations are purportedly taking steps to adapt their operations to climate change. Some stated reasons for their engagement include minimising potential impacts on value chains, improving resource efficiency, enhancing production of sustainable raw materials, and supporting customers’, suppliers’ and communities’ climate change adaptation efforts. However, there is a paucity of work analysing adaptation actions by these corporations, their motivations and contribution to broader adaptation and climate resilient development efforts, as well as possible instances of maladaptation. We apply a three-tier framework on drivers, responses and outcomes to examine the state of knowledge according to recent literature on private sector and corporate adaptation to climate change. Our review highlights that the literature on the impact and outcomes of corporate adaptation actions is sparse and we consider the implications for future research. Our analysis concludes with a reflection on the relevance of corporate-led adaptation – for the companies themselves, policy-makers at all scales, as well as society at large.
    JEL: R14 J01
    Date: 2016–07
  16. By: AfDB AfDB
    Date: 2017–05–17
  17. By: E.P.N. Udayakumara; U.A.D.P. Gunawardena
    Abstract: Hydropower in Sri Lanka is affected by unanticipated siltation from changes in upstream watersheds. In this study, we examine the costs of soil erosion associated with the Rantambe reservoir. We assess the impact of changing upstream land use patterns on soil erosion, reservoir sedimentation, electricity availability and dredging costs by using the Integrated Valuation of Ecosystem Services and Tradeoffs (InVEST) Sediment Retention model. We find that the current human-induced average rate of soil erosion in the watershed is 10.7 tons/ ha/year, which is approximately double the permissible rate of soil erosion. Consequently,the reservoir bears an annual hydropower loss of some half a million rupees (over three thousand US$) per year. Our model estimates that these hydel losses could be avoided by incurring an annual cost of dredging of Rs. 259,605 (1,782 US$). Three alternative watershed management strategies would also help lower sedimentation. These include: (I) adoption of a Soil and Water Conservation (SWC) by farmers, (II) re-foresting farmlands with slopesgreater than 60%, and (III) reforesting 10% of current farmlands. Strategy I would reduce the soil erosion rate relative to business as usual by 23%, strategy II would reduce the rate by 16% and strategy III would lower the soil erosion rate by 11%. Thus, SWC strategy (I) provides the best outcome. Undertaking plot level soil and water conservation (strategy I) would result in electricity revenue savings of 15% (460 US$) per year relative to the current scenario. While we focus on the hydel benefits, it is likely that there are also farm level benefits to soil and water conservation.
  18. By: Derek Lemoine
    Abstract: I reconcile a benchmark model of directed technical change with the historical experience of energy transitions by allowing for a non-unitary elasticity of substitution between machines and the other factor of production, interpreted here as energy resources. I show that the economy becomes increasingly locked-in to the dominant sector when machines and resources are gross substitutes, but a transition from the dominant sector to the other is possible when machines and resources are gross complements. Consistent with history, a transition in research activity leads the transition in resource supply. A calibrated numerical implementation shows that innovation is critical for climate change policy. A policymaker would use a U-shaped emission tax trajectory so as to immediately transition innovation away from the fossil sector, wait for clean technology to improve, and then hasten a transition in resource supply later in the century.
    JEL: N70 O33 O38 O44 Q43 Q54 Q55 Q58
    Date: 2017–05
  19. By: McVicar, Duncan (Queen's University Belfast); Wooden, Mark (Melbourne Institute of Applied Economic and Social Research); Fok, Yin King (Melbourne Institute of Applied Economic and Social Research)
    Abstract: The debate over whether contingent (and typically more precarious) employment acts as a bridge to permanent employment, or as a trap, has tended to focus on transitions rather than longer-run pathways. This approach cannot accurately identify indirect pathways from contingent to permanent employment, and nor can it identify 'trap' pathways involving short spells in other states. It also fails to distinguish between those experiencing contingent employment as a 'blip' and those with longer spells. This article employs a different approach involving sequence analysis. Exploiting longitudinal data for Australian, evidence for the co-existence of pathways that correspond to 'bridge' and 'trap' characterisations of contingent employment is found. Further, in the case of casual employment these two types of labour market pathways are roughly equally prevalent, although for some groups – in particular women, those with low educational attainment, and those with a disability – 'traps' are more likely than 'bridges'.
    Keywords: casual employment, contingent employment, temporary employment, pathways, segmented labour markets, sequence analysis
    JEL: J41 C38
    Date: 2017–05
  20. By: AfDB AfDB
    Date: 2017–05–17
  21. By: AfDB AfDB
    Date: 2017–05–17
  22. By: Anne-Sarah Chiambretto (GREQAM - Groupement de Recherche en Économie Quantitative d'Aix-Marseille - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - Ecole Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique); Hubert Stahn (GREQAM - Groupement de Recherche en Économie Quantitative d'Aix-Marseille - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - Ecole Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique)
    Abstract: We investigate the possibility for governance authorities to avoid a large part of regulatory costs, by simply backing up social norms with a threat of collective punishment. Specifically, we consider the case of fisheries in which the regulatory cap is to sustain an optimal conservation level. We identify a mandatory regulation such that, when it is used as a threat, it ensures that the cap is voluntarily implemented. The mandatory scheme is based on a incentive mechanism which secures the returns of the harvester, and a tax on potential capacity. From the status of mere threat, this mandatory regulation takes time to be enforced though. We show that such a tax scheme, even if it is applied randomly after the first occurrence of a deviation from the optimal conservation level, ensures voluntary compliance, provided a suitable choice of the capacity tax. We study the properties of this tax scheme and build an example using data on the scallop fishery in the Saint-Brieuc Bay (France) to illustrate our point.
    Keywords: voluntary agreements,fisheries,conservation policies
    Date: 2017–04

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