nep-agr New Economics Papers
on Agricultural Economics
Issue of 2018‒07‒30
twenty papers chosen by

  1. Effects of Food Prices on Poverty: The Case of Paraguay, a Food Exporter and a Non-Fully Urbanized Country By Santiago Garriga; María Ana Lugo; Jorge Puig
  2. Impact of Institutions on Rural Livelihoods Case Study of Village Mundoti By Netar, Tejaram
  3. Urbanization And International Migration From Africa By Giovanni Ferri; Roshan Borsato
  4. Effects of Prices and Yields on the Choice of Farming Tobacco, Results from Uganda By Catherine Namome; Corne Van Walbeek
  5. Do Campaign Contributions from Farmers Influence Agricultural Policy? Evidence From a 2008 Farm Bill Amendment Vote to Curtail Cotton Subsidies By Scott Callahan
  6. Getting more 'carbon bang' for your 'buck' in Acre State, Brazil By Palmer, Charles; Taschini, Luca; Laing, Timothy
  7. Seaweed as snack food - What target consumers ? IDEALG project By Morgane Marchand; Charline Comparini; Marie Lesueur
  8. Wastewater and jobs the decent work approach to reducing untreated wastewater By Renner, Michael.
  9. The spatial sorting of informal dwellers in cities in developing countries: Theory and evidence By Harris Selod; Lara Tobin
  10. Minimum Wages and Healthy Diet By Pohl, R. Vincent; Clark, Kathryn L.; Thomas, Ryan C.
  11. Identifying Food Labeling Effects on Consumer Behavior By Sebastián Araya; Andrés Elberg; Carlos Noton; Daniel Schwartz
  12. Investigating the potential of cooperatives to re-embed the economy: a multiple case study of food cooperatives in Belgium By Julien VASTENAEKELS; Jérôme PELENC
  13. Economic Values of Coastal Erosion Management: Joint Estimation of Use and Passive Use Values with Recreation Demand and Contingent Valuation Data By Craig E. Landry; J. Scott Shonkwiler; John C. Whitehead
  14. Key Issues of Competitiveness of Agricultural Sector (the case of Zemo Svaneti Region) By Mariami Jibuti
  15. Optimal Monetary Policy in the Presence of Food Price Subsidies By William Ginn; Marc Pourroy
  16. Factor market participation and tests for separability in Afghanistan By Hayatullah Ahmadzai
  17. The Impact of Exchange Rate Dynamics on Agricultural Output Performance in Nigeria By Adekunle, Wasiu; Ndukwe, Innocent
  18. Individual choices influence on value chain sustainability By G Petit; G Yannou-Le Bris; G. Trystram
  19. Decomposing the urban-rural welfare gap in Sri Lanka By Nirodha Bandara; Simon Appleton; Trudy Owens

  1. By: Santiago Garriga (Paris School of Economics); María Ana Lugo (World Bank); Jorge Puig (CEDLAS-FCE-UNLP)
    Abstract: A vast proportion of households in developing countries like Paraguay are both consumers and producers of food, and thus the effects of food price fluctuations on welfare are not obvious. Historically, the agricultural sector in Paraguay has played a key role in economic development and has contributed significantly, and increasingly, to economic growth. In recent years, sharp movements in commodity prices have been added to the inherent volatility of the sector linked to climate conditions. In this work, we use the 2011/12 expenditure and income survey, as well as monthly price data for 127 food items for the period 2007/15, to simulate the effect of a potential hike in food prices on welfare. Our main results suggest that the expenditure effect is negative and regressive everywhere, but larger in rural than urban areas. The income effect is positive and progressive in rural areas and negligible in urban ones. Therefore, we find that the potential overall impact of an unexpected increase in food prices in Paraguay is a very flat U-shaped curve. We conclude with a simple exercise where we simulate a policy response in order to help those affected by the initial increase in food prices.
    JEL: D31 I38 Q12
    Date: 2018–07
  2. By: Netar, Tejaram
    Abstract: Proposed study presents an analysis of the linkages between the Livelihood strategies of the rural area and their Institutional impact on the rural livelihoods. Agriculture is the main livelihood option of the majority of the rural people in rural area. As a coping strategy for food production and income generation, wetlands and uplands are used in an integrated manner by the rural people to achieve sustained livelihoods. The researcher has presented trend by graphs and used models between the variables to analyze the relationship between institutions and livelihoods in rural area. Study has taken primary data source through direct interaction with the household of rural area, Mundoti village in Kishangarh Tehsil of Ajmer district in Rajasthan, India.
    Keywords: Rural, Livelihood, Institution, Household
    JEL: H1 I38 Q13 Q14 Q15 R2 R23
    Date: 2017–12–06
  3. By: Giovanni Ferri (LUMSA University); Roshan Borsato (LUMSA University)
    Abstract: Climate change exacerbates desertification forcing millions of rural people to urbanize, especially in developing countries. Our quantitative analysis across African countries highlights migrants’ two typical sequential moves: i) people escape from villages to cities; ii) through cities’ enabling settings, some of them emigrate to developed countries. We find that: i) previous lower fresh water availability – our climate-related proxy – and drops in GDP’s agricultural share in Sub-Sahara seem to boost subsequent urbanization: ii) previously heightened urbanization subsequently inflates emigration rates. Thus, policies to combat land impoverishment/desertification would help both the environment and easing the stress that migration casts on societies’ balance.
    Keywords: Desertification, Climate change, Urbanization, International migration.
    JEL: F22 O15 O18 O55 Q54 R14 R23
    Date: 2018–07
  4. By: Catherine Namome (University of Cape Town); Corne Van Walbeek (University of Cape Town)
    Abstract: Objective:Tobacco farming is important amongst smallholder farm households, and controversial within policy circles and tobacco control lobbyists. There is little knowledge about why farmers farm tobacco. We examined, cross-sectionally, why farmers grow tobacco and tested whether price and yield stimuli of tobacco and non-tobacco crops would influence the choice of farming tobacco. Methods: A cross-sectional based survey with a sample of 126 farm households (mean farm acreage 5) in the West Nile sub-region of Uganda were surveyed in 2014. We assessed the structure of their land system, access to finance, input use, production and farm expenditure of tobacco and non-tobacco crops. Regression analyses tested whether price and crop yield ratios, controlling for resources were related to the choice of growing tobacco. Results: Tobacco farmers are less likely to farm tobacco leaf if there is an increase in the price ratio of coffee to tobacco, -0.800 p
    Keywords: Tobacco, Prices, Yields
    JEL: D21 A10 A19
    Date: 2017–07
  5. By: Scott Callahan
    Abstract: Farmers in the United States receive billions of dollars per year from federal farm support programs. While the nature of these programs has evolved since the Great Depression, they both persist and expand with the passage of every farm bill. This paper studies the political activities of individual farmers and the political action committees that represent their interests by exploiting a vote to amend the 2008 farm bill that, had it passed, would have curtailed a cotton subsidy program. I find evidence that cotton farmers contribute substantially to campaigns in the House of Representatives. The more a cotton farmer receives in farm subsidies, the more likely they are to make political contributions. Further, there is evidence that cotton farmers contribute substantially to non-local races, and that these contribution patterns closely resemble those of cotton political action committees. Results on the effectiveness of these contributions in influencing legislative outcomes is inconclusive. Key Words: Agricultural Policy, Lobbying, Rent Seeking, Campaign Finance
    JEL: Q18 D72
    Date: 2018
  6. By: Palmer, Charles; Taschini, Luca; Laing, Timothy
    Abstract: Acre State in Brazil is at the forefront of efforts to institutionalize jurisdictional-scale policies that aim to reduce emissions from deforestation and forest degradation (REDD+). Given limited REDD+ funds and uncertain returns from alternative land uses, this paper estimates the minimum incentive payment Acre’s government would have to pay forest landowners in each of its 22 municipalities to ensure forest conservation. Despite lower profits but with lower conversion costs and more stable returns over time relative to corn and coffee production, cattle pasture generates the highest returns in 19 municipalities. Municipalities are ranked according to their relative policy costs, a ranking which is compared to the distribution of forest carbon stocks across Acre. Finally, the relative cost per tonne of carbon is derived, which enables the identification of a group of 13 municipalities with the greatest potential for ‘carbon bang’ for a given ‘buck’.
    Keywords: Acre; cost-effectiveness; forest conservation; option value; payments for environmental services; reducing emissions from deforestation and degradation (REDD+); uncertainty
    JEL: N0
    Date: 2017–12–01
  7. By: Morgane Marchand (Pôle halieutique - AGROCAMPUS OUEST); Charline Comparini (AGROCAMPUS OUEST, Pôle halieutique - AGROCAMPUS OUEST); Marie Lesueur (AGROCAMPUS OUEST, Pôle halieutique - AGROCAMPUS OUEST)
    Abstract: The surveys conducted by AGROCAMPUS OUEST as part of the Idealg project iden"fied consumers interested in seaweed as snack food, work that resulted in the authors asking the following ques"on: " Are seaweed food products suited to French ea)ng habits? ". Diagram summing up the methods used Seaweed snacks account for a fairly small part of the range of non-Asian style seaweed food products available although they poten"ally meet the ea"ng requirements of many consumers who have made a habit of ea)ng between meals, outside their homes but who also want to eat healthy, natural and local food. Who are these poten"al consumers of seaweed snacks and what products are currently available? What measures could be taken to encourage consumers to eat seaweed? Context In Asia, seaweed is historically a tradi"onal source of food whereas in France, seaweed consump"on is re-la"vely limited and only started to gain momentum in the 2000s. French seaweed producers and processors have developed a wide range of products suited to French-style cuisine and containing seaweed in all its various forms. In France, food intake is tradi"onally divided in three daily meals. Some consumers, however, choose to move away from this ea)ng pa2ern, with repercussions on breakfast, which they may skip, or on lunch, which will merely consist of a bite to eat. Thus about one third of French consumers eat between tradi"o-nal main meals, a3ernoon snack and aperi"f excluded. Snack food is food that can be eaten with the fingers at any)me and/or anywhere.
    Date: 2017
  8. By: Renner, Michael.
    Abstract: Substantial employment can be generated in expanded treatment plants and systems, through reuse of wastewater treated to ‘fit-for-purpose’ levels, and in a range of water-dependent sectors, especially agriculture. In principle, input-output analysis and social accounting matrices allow a comprehensive mapping of employment impacts. The Sustainable Development Goal to ensure availability and sustainable management of water and sanitation for all (SDG 6) offers a strategic opportunity for substantially improving the management of wastewater, for reviewing national policy frameworks, and for increasing investments. They also offer opportunities to advance several targets included in the Goal to promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all (SDG 8). This paper also discusses wastewater reuse opportunities in the industrial sector and in agriculture, as well as the capture of by-products from wastewater. Wastewater can be recycled within a given industrial plant, or the wastewater of one enterprise can be reused as a resource by adjacent facilities. Such practices avoid expenses for water, energy, and discharge fees, offering a competitive advantage and thus shoring up existing jobs.
    Keywords: water treatment, employment creation, waste recycling, productivity
    Date: 2017
  9. By: Harris Selod (The World Bank - The World Bank - The World Bank); Lara Tobin (PSE - Paris School of Economics, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Panthéon-Sorbonne - ENS Paris - École normale supérieure - Paris - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique)
    Abstract: We propose a theory of urban land use with endogenous property rights that applies to cities in developing countries. Households compete for where to live in the city and choose the property rights they purchase from a land administration which collects fees in inequitable ways. The model generates predictions regarding the levels and spatial patterns of residential informality in the city. Simulations show that land policies that reduce the size of the informal sector may adversely impact households in the formal sector through induced land price increases. Empirical evidence from a sub-Saharan African city supports the model's assumptions and outcomes.
    Keywords: Land markets,Property rights,Tenure security,Multiple sales
    Date: 2018–01
  10. By: Pohl, R. Vincent; Clark, Kathryn L.; Thomas, Ryan C.
    Abstract: A healthy diet is often unaffordable for low-income individuals, so income-lifting policies may play an important role in not only alleviating poverty but also in improving nutrition. We investigate if higher minimum wages can contribute to an improved diet by increasing consumption of fruits and vegetables. Exploiting recent minimum wage increases in the U.S. and using individual-level data from the Behavioral Risk Factor Surveillance System we identify the causal effect of minimum wage changes on fruit and vegetable intake among low-wage individuals in a triple-differences framework. Our results indicate that higher minimum wages contribute positively but moderately to improved nutrition.
    Keywords: minimum wages, nutrition, healthy diet, fruit and vegetable consumption, triple-differences
    JEL: I12 J38
    Date: 2017–07–28
  11. By: Sebastián Araya; Andrés Elberg; Carlos Noton; Daniel Schwartz
    Abstract: We take advantage of the gradual implementation of a comprehensive mandatory food labeling regulation introduced in Chile to identify its effects on consumer behavior. Using individual-level scandata from transactions in a big-box supermarket, we estimate a demand model for differentiated products in which a food label indicator captures the warning label effect. We find sizable effects on juices and cereals, but no impact on chocolates & candies and cookies. Our results are consistent with the information disclosure being effective only when information is unexpected. Key words:
    Date: 2018
  12. By: Julien VASTENAEKELS (Centre d’études du développement durable – Université Libre de Bruxelles, Belgium); Jérôme PELENC (Centre d’études du développement durable – Université Libre de Bruxelles, Belgium)
    Abstract: It is now widely acknowledged that the development of conventional capitalist food systems has provoked multiple social, environmental and economic problems which are undermining the sustainability of the agro-food industry. As a response, many bottom-up, solution-oriented initiatives have flourished. Among them, food cooperatives have brought together citizens, producers, entrepreneurs, distributors and other actors to build alternative, sustainable, local food systems along the entire food supply chain. The capacity of these diverse cooperatives to move the economy towards sustainability remains unclear. To investigate this, we conducted a qualitative study involving three food cooperatives in Belgium. By examining how they have implemented two cooperative principles, we explored to what extent they are helping to “re-embed” the economy in society. From an empirical point of view, we offer a typology of food cooperatives and their “re-embedding potential” as a new research hypothesis. The typology has two dimensions: (i) surplus distribution i.e. from “investment-fuelled action” to “community-fuelled action” and (ii) the relationships between consumers and producers i.e. from “purely commercial relationships” to “cooperative partnerships”. It has enabled us to contrast the paradoxes inherent to cooperatives and their potential to transform the economy brick by brick with their values and ethics.
    Keywords: food cooperatives; cooperative principles; sustainable food; embeddedness; market economy
    JEL: P13 D22
    Date: 2018–05
  13. By: Craig E. Landry; J. Scott Shonkwiler; John C. Whitehead
    Abstract: Revealed and stated preference survey data from North Carolina households are utilized to estimate a joint structural microeconometric model of recreation demand and willingness-to-pay (WTP) for coastal erosion management among beach visitors and non-visitors. We test for and reject weak complementarity, implying existence of non-use values associated with management of North Carolina’s coastal resources. We find stronger preferences for shoreline retreat (median WTP = $22.20 per household, per year) as a management strategy relative to beach nourishment (WTP = $7.45) and substantially weaker preferences for shoreline armoring (WTP = $0.09). Shoreline retreat exhibits much larger estimates of non-use values, whereas non-use values for shoreline armoring are negative. Minimizing negative environmental impacts of erosion management increases WTP over 200%. Our data permit estimates of marginal value of incremental beach width accruing to beach users and non-users (which ranges from $0.23 and $0.47 per meter). Key Words: recreation; demand; beach; erosion; management; economic; value
    JEL: D78 H43 Q24 Q26 Q51
    Date: 2018
  14. By: Mariami Jibuti (Ivane Javakhishvili Tbilisi State University)
    Abstract: Work provides discussion of one of the most significant issues in Georgian economy ? agrarian sector development, competitiveness and effectiveness of the state policy. In particular, it analyses characteristics of agrarian sector development in Georgia and Zemo Svaneti Region, factors that affect it, its priorities and trends. On the basis of assessment of the natural resources potential of Zemo Svaneti Region the conclusion is made that in this region the focus can be made on bio production.Work studies, analyses and applies the methodological approaches for competitiveness assessment offered by different scientists, identifies factors hindering agrarian products? competitiveness and to assess their priority the ?impact-urgency? matrix. Based on competitiveness determination methodology and Porter?s diamond model we have studied strategic agricultural food sectors and their competitiveness.Work assesses the impact of the state policies dealing with cooperatives and development of the high-mountain regions on Georgia and especially on development of agrarian sector in Zemo Svaneti Region. It analyses formation of service cooperatives and the ways of improvement of Georgian Law on Development of High-Mountain Regions.Based on the performed studies, the recommendations were formulated for agrarian sector development and state policies improvement at both, national and regional levels.
    Keywords: mountainous region, agriculture, competitiveness, policy.
    JEL: Q18
    Date: 2017–07
  15. By: William Ginn (FAU - Friedrich-Alexander Universität Erlangen-Nürnberg); Marc Pourroy (CRIEF - Centre de Recherche sur l'Intégration Economique et Financière - Université de Poitiers)
    Abstract: Food price subsidies are a prevalent means by which fiscal authorities may counteract food price volatility in middle-income countries (MIC). We develop a DSGE model for a MIC that captures this key channel of a policy induced price smoothing mechanism that is different to, yet in parallel with, the classic Calvo price stickiness approach, which can have consequential effects for monetary policy. We then use the model to address how the joint fiscal and monetary policy responds to an increase in inflation driven by a food price shock can affect welfare. We show that, in the presence of credit constrained households and households with a significant share of food expenditures , a coordinated reaction of fiscal and monetary policies via subsidized price targeting can improve aggregate welfare. Subsidies smooth prices and consumption, especially for credit constrained households, which can consequently result in an interest rate reaction less intensely with subsidized price targeting compared with headline price targeting.
    Keywords: Monetary Policy,Fiscal Policy,Food subsidies,DSGE Model,Subsidies,Commodities,Middle income countries
    Date: 2018–07–05
  16. By: Hayatullah Ahmadzai
    Abstract: Using nationally representative data from repeated cross section surveys conducted in 2011/12, 2013/14, and 2016/17, we test for separability in the household model and analyse household factor market participation in Afghanistan. Estimates of a household labour demand model and tests for separability reject the null hypothesis that household labour supply and demand decisions are separate. The fact that the magnitude and quantity of labour demanded by the farm household is strongly influenced by the household endowment of labour can be interpreted to mean that there exist potential market failures in multiple markets in Afghanistan. Exploring input market participation, results reveal that ownership of information and communication technologies and transport assets by households has a strong positive influence on the use of inputs. In addition, households living in communities with better access and within a closer radius of markets are more likely to participate in factor markets and spend more on purchased inputs. Standard factors such as household socio-demographic and socio-economic factors were also observed to have an important influence on factor market participation: household size, literacy and education; land endowments and quality; off-farm income; and ownership of farming assets such as tractors, oxen and livestock, are significant determinants of participation and expenditure on inputs. The analysis allows observed transaction costs to be endogenous using instrumental variables and employing a control function approach. The endogeneity of ownership of ICT and transport equipment in fertilizer and chemical, and tractor rental markets is confirmed (we reject endogeneity in the case of hired labour). Correcting for endogeneity bias revealed a negative association between the error terms in the reduced form and structural model, but the main results were maintained.
    Keywords: transaction costs, factor markets, separability, Afghanistan
    Date: 2018
  17. By: Adekunle, Wasiu; Ndukwe, Innocent
    Abstract: Abstract The study investigated the possible asymmetric effect of real exchange rate dynamics on agricultural output performance in Nigeria over the period of 1981 to 2016 by collecting data from secondary sources. The study employed a combination of stationary and nonstationary variables as was found out through the ADF unit root test. Based on the Bounds test for cointegration, a long-run relationship was absent between real exchange rate and agricultural output, irrespective of specifications. Generally, the result of model estimation showed that the significant drivers of agricultural output are real exchange rate (log-levels), real appreciation and depreciation (after some lags), industrial capacity utilization rate, and government expenditure on agriculture (after some lags). ACGSF loan exerted positive and insignificant influence on agricultural output. In addition, though the effect of real appreciation was larger than that of real depreciation, the present study could not find any evidence in support of the asymmetric effect of real exchange rate dynamics on agricultural output performance in the Nigerian economy. It is therefore suggested that fiscal and monetary authorities in Nigeria should work in unison at ensuring that the full potentials of the agricultural sector are harnessed for the growth and development of the country.
    Keywords: Keywords: Real exchange rate, Agricultural output, and Asymmetry
    JEL: Q11 Q17 Q18 Q19
    Date: 2018–06–02
  18. By: G Petit (GENIAL - Ingénierie Procédés Aliments - INRA - Institut National de la Recherche Agronomique - AgroParisTech - CNAM - Conservatoire National des Arts et Métiers [CNAM]); G Yannou-Le Bris (LGI - Laboratoire Génie Industriel - EA 2606 - CentraleSupélec, AgroParisTech); G. Trystram (GENIAL - Ingénierie Procédés Aliments - INRA - Institut National de la Recherche Agronomique - AgroParisTech - CNAM - Conservatoire National des Arts et Métiers [CNAM])
    Date: 2017–06–25
  19. By: Nirodha Bandara; Simon Appleton; Trudy Owens
    Abstract: This paper explores the urban-rural welfare gap in 2002 and 2009/10 for the case of Sri Lanka. This was a period of high growth and falling poverty rates in the country. The paper attempts to explore three issues: (a) what are the determinants of urban and rural household welfare, (b) does the urban-rural welfare gap rise or fall between 2002 and 2009/10, and (c) what factors contribute towards the widening or narrowing of the urban-rural welfare gap over time. The paper contributes to existing literature using a new method of unconditional quantile regression to examine the determinants of per capita expenditure for urban and rural households across the expenditure distribution. Further, this method enables us to isolate and identify the characteristics that contribute towards the urban-rural divide in welfare. For this, a variant of the threefold Blinder-Oaxaca decomposition is applied directly to the estimation results of the unconditional quantile regression. We find the urban-rural welfare gap to have fallen considerably between 2002 and 2009/10. At a given point in time, the welfare gap is larger between richer urban and rural households relative to poorer households.
    Keywords: unconditional quantile regression, urban-rural welfare gap, Blinder-Oaxaca decomposition, Sri Lanka
    Date: 2018
  20. By: Gaëlle Petit (GENIAL - Ingénierie Procédés Aliments - INRA - Institut National de la Recherche Agronomique - AgroParisTech - CNAM - Conservatoire National des Arts et Métiers [CNAM]); Gwenola Yannou-Le Bris (LGI - Laboratoire Génie Industriel - EA 2606 - CentraleSupélec); Gilles Trystram (GENIAL - Ingénierie Procédés Aliments - INRA - Institut National de la Recherche Agronomique - AgroParisTech - CNAM - Conservatoire National des Arts et Métiers [CNAM])
    Date: 2017–08–21

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