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on Agricultural Economics |
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Issue of 2022‒09‒26
24 papers chosen by |
| By: | Thipphavong, Viengsavang; Vanhnalat, Bounlert; Vidavong, Chanhphasouk; Bodhisane, Somdeth |
| Keywords: | Agribusiness, Agricultural and Food Policy |
| Date: | 2022–03–01 |
| URL: | http://d.repec.org/n?u=RePEc:ags:miprrp:324028&r= |
| By: | Clara Frezal; Claude Nenert; Hubertus Gay |
| Abstract: | Meat alternatives are attracting private investment and interest from the research community as possible solutions to meet the growing global demand for proteins in a sustainable, ethical, and healthy way. Using a food systems lens, this report investigates the opportunities and challenges associated with three meat alternatives: plant-based, insects and cultured meat. The analysis is based primarily on a literature review, which is complemented by an illustrative scenario using the OECD-FAO Aglink-Cosimo model. Results from the scenario analysis suggest that a shift from meat to meat alternatives in high and upper middle-income countries could result in a decline in global agricultural land use and GHG emissions from the agriculture, forestry, and other land use sector. Lower demand for meats in these countries would also lead to a decrease in international prices for meats, soybean and cereals, which would benefit consumers but place pressure on farmer incomes. |
| Keywords: | Cultured meat, Economic scenario, Insects, Plant-based |
| JEL: | O13 Q19 Q55 L66 |
| Date: | 2022–09–06 |
| URL: | http://d.repec.org/n?u=RePEc:oec:agraaa:182-en&r= |
| By: | Dohlman, Erik; Hansen, James; Boussios, David |
| Abstract: | This report provides projections for the agricultural sector to 2031. Projections cover agricultural commodities, agricultural trade, and aggregate indicators of the sector, such as farm income. The projections are based on specific assumptions, including a consensus macroeconomic scenario, existing U.S. policy, and current international agreements. The Agriculture Improvement Act of 2018 is assumed to remain in effect through the projection period. The projections are one representative scenario for the agricultural sector and reflect a composite of model results and judgment-based analyses. The projections in this report were prepared using data through the October 2021 World Agricultural Supply and Demand Estimates (WASDE) report, except where noted otherwise. Macroeconomic assumptions were concluded in August 2021. |
| Keywords: | Agricultural Finance, Crop Production/Industries, Farm Management, Industrial Organization, Livestock Production/Industries |
| Date: | 2022–02–16 |
| URL: | http://d.repec.org/n?u=RePEc:ags:usdami:323859&r= |
| By: | Ilie, Elena Teodora; Hickey, Amanda; Kelly, Siobhan |
| Abstract: | This study looks at the business models of small and medium-sized rice processors in Kenya in order to better understand the policy and technical support they need to grow and fulfill their role in agrifood systems transformation. More specifically, by employing semi-structured interviews with Kenyan rice millers, the technical study identifies challenges in their day-to-day business activities, including procurement, inbound and outbound logistics, in-house operations, financing, and human resources management. Additionally, the publication looks at opportunities for improving the business enabling environment in which these enterprises operate, providing a set of policy options to foster their role. The methodology cross fertilizes different disciplinary perspectives in order to gather evidence for formulating policy in a way that integrates several policy fields and cross-cutting issues such as food safety, quality and nutrition; farmer-market linkages; decent rural employment and gender equality; or rural investment. The paper showcases how small and medium agrifood manufacturers respond to the business-enabling environment and also contribute to local development from multiple angles. |
| Keywords: | Agribusiness, Agricultural and Food Policy, Community/Rural/Urban Development |
| Date: | 2022–08–18 |
| URL: | http://d.repec.org/n?u=RePEc:ags:faoets:324072&r= |
| By: | Rodríguez, Julieta A.; Lupín, Beatriz |
| Abstract: | The aim of this work is to quantitatively analyze the association between consumer's characteristics and their preferences for potato food safety attributes. |
| Keywords: | Consumo de Alimentos; Preferencias del Consumidor; Papa; Argentina; |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:nmp:nuland:3702&r= |
| By: | Wang, Feiyang; Shreedhar, Ganga; Galizzi, Matteo M; Mourato, Susana |
| Abstract: | Previous research on food waste interventions has mostly focused on micro-level factors related to the individuals, and largely neglected macro-level contextual factors such as work-to-home spillovers. Inspired by the multi-level framework, we present a case study of how macro-level workplace campaigns could decrease food waste in staff cafeterias, compete with micro-level factors like environmental identity, and further stimulate some employees’ food saving efforts at home. The workplace interventions combined smart bins with fortnightly informational feedback trialed in three staff cafeterias of a large hotel chain in Macau, China. Actual food waste data and self-reported behavior consistently show that the staff cafeteria receiving environmental framing with anthropomorphic cues had more reductions in food waste behaviors. A key determinant of self-reported food saving efforts at home was efforts to reduce food waste at work, which predicted beyond and above environmental identity and provided evidence for positive contextual spillover effects. |
| Keywords: | food waste; behavioral intervention; multi-level framework; environmental framing; anthropomorphism; contextual spillover |
| JEL: | R14 J01 |
| Date: | 2022–11–01 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:115762&r= |
| By: | Christophe Gouel; Nicolas Legrand |
| Abstract: | Understanding commodity prices dynamics is of crucial importance for assessing the persistence of cost-push costs or for countries dependent on commodity exports. Unfortunately, despite decades of research, the workhorse theoretical model in the field, the rational expectations storage model, is yet to be empirically validated. This paper provides the first full empirical test of the storage model. We first build a new storage model featuring a supply response, long-run demand and cost trends, and four structural shocks. We then develop a flexible empirical approach which relies on the indirect inference method and exploits the joint dynamics of prices and quantities unlike previous estimations which only use price information. The information contained in quantities is essential to relax restrictive identifying assumptions and empirically assess the overall consistency of the model's new features. Finally, we carry out a structural estimation on the aggregate index of the world most important staple food products: maize, rice, soybeans, and wheat. The results show that our extended storage model is consistent with most of the moments in the data, including the high price autocorrelation of which up to 42% can be explained by the transfer of inventories over time. They also show that, although for these commodities supply shocks are the main drivers of market dynamics, over the past 60 years all price spikes have been associated with large positive demand shocks. |
| Keywords: | Commodity Price Dynamics;Indirect Inference;Monte Carlo Analysis;Storage |
| JEL: | C51 C52 Q11 |
| Date: | 2022–07 |
| URL: | http://d.repec.org/n?u=RePEc:cii:cepidt:2022-04&r= |
| By: | Geoff Lewis (Productivity Commission); Sally Garden (Productivity Commission); Hamed Shafiee (Productivity Commission); Geoff Simmons (Productivity Commission); Jo Smith (Productivity Commission) |
| Abstract: | This paper summarises the findings from case studies of four significant New Zealand industries: Dairy (both farming and processing), Health technology, Horticulture (with a focus on kiwifruit and wine) and Software products and services. The work is an important part of the evidence base for the Commission's inquiry "New Zealand firms: Reaching for the frontier". The four case studies have identified various opportunities for improving productivity, some industry-specific and some generic. |
| Date: | 2021–04 |
| URL: | http://d.repec.org/n?u=RePEc:ayz:wpaper:21_02&r= |
| By: | Melkani, Aakanksha; Liverpool-Tasie, Lenis. S.O.; Snapp, Sieglinde |
| Abstract: | This study critically reviewed policy documents and associated budgets of six sub-Saharan African countries (accounting for about 40% of Africa’s population and (gross domestic product) GDP and almost 60% of inorganic fertilizer use in the region) to gauge government’s commitment to agricultural intensification (AI) and sustainable agricultural intensification (SAI) during the last two decades. This is this is the first systematic assessment of African ag policy documents in relation to Sustainable Intensification and three key findings emerge. First, we find that all study countries have consistently prioritized AI as a key policy objective over the last two decades. This commitment to AI is supported by significant resource allocation to AI programs and interventions. Second, we find that policy focus on SAI is a more recent phenomenon and resource allocation to SAI is generally low. Though all study countries demonstrate interest in some aspect of SAI by 2010, this enthusiasm is not proportionately reflected in the resources allocated to SAI. Third, we find that all countries emphasize the need for investment in agricultural research and extension, but the resource allocation varies substantially and is not always proportionate to the expressed interest in the sector. Together these findings indicate that the focus of agricultural investments in Africa remains agricultural intensification in the main with only modest sustainable agricultural intensification and that only in recent years. |
| Keywords: | Agricultural and Food Policy |
| Date: | 2022–03–01 |
| URL: | http://d.repec.org/n?u=RePEc:ags:miprrp:324030&r= |
| By: | Samba Diop (Alioune Diop University, Bambey, Senegal); Simplice A. Asongu (Yaoundé, Cameroon) |
| Abstract: | The objective of the paper is to evaluate whether there is a change in the level or trend of food prices in fragile countries following the Covid-19 pandemic and the Russia-Ukraine war. The empirical evidence is based on Interrupted Time Series Analysis. The following findings are established. Firstly, an immediate and sustained positive effect is noted, indicating that for each month that passes after the Covid-19 and Russia-Ukraine war, food prices increase in most of the fragile countries. Secondly, if the Covid-19 and the Russia-Ukraine war had not happened, the price level and its trend would have been at a significantly lower level in fragile countries. Thirdly, the Russia-Ukraine war intervention period slope is significantly and considerably higher than that of the Covid-19 indicating that the Russia-Ukraine war has increased food prices in fragile countries more proportionately than the Covid-19 pandemic did. |
| Keywords: | Covid-19; Russia-Ukraine war; food prices; fragile countries |
| JEL: | F52 K42 O17 O55 P16 |
| Date: | 2022–09 |
| URL: | http://d.repec.org/n?u=RePEc:exs:wpaper:22/055&r= |
| By: | Carneiro, Juliana (University of Warwick,); Cole, Matthew A. (University of Birmingham,); Strobl, Eric (University of Bern) |
| Abstract: | This paper examines the impact of foetal exposure to air pollution from agricultural fires on Brazilian students cognitive performance later in life. We rely on comparisons across children who were upwind and downwind of the fires while in utero to address concerns around sorting and temporary income shocks. Our findings show that agricultural fires increase P M2.5, resulting in significant negative effects on pupils’ scores in Portuguese and Maths in the 5th grade through prenatal exposure. Back-of-the-envelope calculations suggest that a 1% reduction in P M2.5 from agricultural burning has the potential to increase later life wages by 2.6%. |
| Keywords: | Agricultural fires ; air pollution ; foetal exposure ; cognitive performance |
| URL: | http://d.repec.org/n?u=RePEc:wrk:warwec:1425&r= |
| By: | Angelos Alamanos; Phoebe Koundouri (Dept. of International and European Economic Studies, Athens University of Economics and Business); Tatiana Pliakou; Eleni Toli; Lydia Papadaki |
| Date: | 2022–04 |
| URL: | http://d.repec.org/n?u=RePEc:aue:wpaper:2222&r= |
| By: | Njuki, Eric |
| Abstract: | The U.S. dairy sector has undergone substantial structural change characterized by a shift to larger and fewer dairy operations, concentrated in relatively few States. This report measures and analyzes the dairy sector’s productivity growth and efficiency and identifies proximate drivers and sources of this growth in the face of the structural change observed from 2000 to 2020. Results indicate that productivity growth in the dairy sector was widespread, albeit with considerable variations by herd-size class, region, and production type. Western and Southwestern States—Idaho, New Mexico, Arizona, and California—experienced the fastest productivity growth with annual rates between 3.52 and 4.40 percent. Meanwhile, Southern States—Kentucky, Georgia, Missouri, and Tennessee—were the slowest growing with annual rates ranging between 0.89 and 1.74 percent. Furthermore, productivity across the largest herd-size class with more than 1,000 milk cows grew at an annual rate of 2.99 percent while the smallest herd-size class with fewer than 100 milk cows grew at an annual rate of 0.63 percent. Finally, organic dairy operations grew at a much slower pace of 0.66 percent compared with their conventional counterparts that grew at an annual rate of 2.51 percent. |
| Keywords: | Agribusiness, Farm Management, Industrial Organization, Livestock Production/Industries, Marketing, Public Economics |
| Date: | 2022–02–17 |
| URL: | http://d.repec.org/n?u=RePEc:ags:usdami:323860&r= |
| By: | Wang, Sun Ling; Hoppe, Robert A.; Hertz, Thomas; Xu, Shicong |
| Abstract: | During the 20th century, U.S. agricultural employment fell in absolute numbers and as a share of total U.S. employment—the latter from 33 percent in 1910 to about 2 percent in 2017. According to USDA, Economic Research Service agricultural productivity data, total farm output almost tripled, and total labor use declined by nearly 80 percent in the last seven decades, implying that farm output per worker, a single factor productivity measure, grew. This report discusses the contribution of farm labor in U.S. agricultural growth and assesses the changing composition of the U.S. farm labor force with special attention to the changes in educational attainment among farm operators and other workers. The authors found that between 1948 and 2017, the decline in total labor hours worked accounted for -0.57 percentage points per year in annual output growth. These negative effects were partially offset by increasing labor quality, such as increased educational attainment. In the growth accounting frame-work, increased educational attainment accounts for about 8 percentage points of annual agricultural output growth. The average annual rates of labor productivity growth and total factor productivity growth would have been overstated by 13 percent and 8 percent, respectively, if labor quality changes were not accounted for in the measurement. |
| Keywords: | Agribusiness, Agricultural Finance, Community/Rural/Urban Development, Farm Management, Industrial Organization, Labor and Human Capital, Production Economics, Research Methods/ Statistical Methods |
| Date: | 2022–02–15 |
| URL: | http://d.repec.org/n?u=RePEc:ags:usdami:323858&r= |
| By: | Yao Luo; Hidenori Takahashi |
| Abstract: | Procurement projects often involve substantial uncertainty in inputs at the time of contracting. Whether the procurer or contractor assumes such risk depends on the specific contractual agreement. We develop a model of auction contracts where bidders have multidimensional private information. Bidders balance skewed bidding and risk exposure; both efficient and inefficient bidders submit a low bid via skewed bidding. We document evidence of i) risk-balancing behavior through bid portfolio formation and ii) opportunistic behavior via skewed bidding using auction data. Counterfactual experiments suggest the onus of bearing project risk should fall on the procurer (contractor) when project risk is large (small). |
| Keywords: | Contract, Unit-Price, Fixed-Price, Portfolio, Cost Overrun, Procurement, Scoring Auction |
| JEL: | L5 |
| Date: | 2022–09–01 |
| URL: | http://d.repec.org/n?u=RePEc:tor:tecipa:tecipa-732&r= |
| By: | Isaac K. Ofori (University of Insubria, Varese, Italy); Francesco Figari (University of Insubria, Varese, Italy) |
| Abstract: | This study employs macrodata for 23 African countries to examine whether good governance interacts with economic globalisation (EG) to foster inclusive green growth (IGG). First, the study finds that EG hampers IGG in Africa. Second, although unconditionally good governance promotes IGG, only government effectiveness interacts with EG to foster IGG. Across the social and environmental sustainability dimensions of IGG, however, the effects differ substantially. Notably, while the EG-governance pathways yield remarkable environmental sustainability net gains, a modest harmful effect was observed for socioeconomic sustainability. Evidence from our threshold analyses also suggests that while government effectiveness is critical for propelling EG to promote IGG, across the social and environmental perspectives of IGG, it is investments in building frameworks and structures for corruption control and the rule of law that are crucial. Our results shed new light on IGG and have several implications for Agenda 2030 and Agenda 2063. |
| Keywords: | Africa; Economic Globalisation; Governance; Inclusive Growth; Inclusive Green Growth; Greenhouse Gas Emissions; Sustainable Development |
| JEL: | F18 F4 F6 F63 F64 H1 O55 Q01 Q56 |
| Date: | 2022–01 |
| URL: | http://d.repec.org/n?u=RePEc:exs:wpaper:22/053&r= |
| By: | Irina Kalina (Ural Federal University); Andrey Pushkarev (Ural Federal University) |
| Abstract: | Developing countries have achieved significant economic growth over the past few decades. Economic growth contributes to the development of infrastructure facilities, reducing poverty and improving the standard of living of the population. To achieve rapid economic growth, developing economies sacrifice their reserves of natural resources, which leads to serious environmental degradation. The same economic structure, trade ties, similarity in the mindsets of population, common economic environment and history bound the current Commonwealth of Independent States (CIS) countries. In this perspective we assume possible similarities in terms of ecology and ecological footprints within the CIS countries. Therefore, this study investigates the impact of economic growth, natural resources, urbanization, foreign direct investments, trade, corruption on the ecological footprint of the CIS countries in the time frame spanning from 1996 to 2018. For empirical analysis we follow the log-linear form of the Stochastic Impacts by Regression on Population, Affluence and Technology (STIRPAT) model. STIRPAT is a coordinated research program dedicated to understanding the dynamic relationships between human systems and the ecosystems on which they depend aimed to identify the major drivers of environmental harm and to reveal the levers to reduce that harm (Dietz & Rosa, 1994; York et al., 2003). Results of Pesaran's CD test and Bias-corrected LM test evidence the cross-sectional dependence across countries. The unit root test show stationary of variables at 1st difference. Besides, testing for slope heterogeneity allows us to reject the null hypothesis and conclude that slope coefficients are heterogeneity. Additionally, our study explores the effects on ecological footprint in CIS counties by using the pooled mean group (PMG) estimator. We also report estimates applying the mean-group (MG) estimator and dynamic fixed-effects (DFE) estimator for comparison and robustness purpose. The empirical evidence from PMG estimations shows positive and significant influence of economic growth, urbanization, natural resources rent and foreign direct investments on the ecological footprint in the group of CIS countries. Our findings demonstrate the negative impact of these factors on environmental quality. Finally, the CIS countries' governments should collaborate to reduce the excessive use of natural resources and promote institutional development favorable for the environment. |
| Keywords: | Urbanization, Economic development, Corruption, Ecological footprints, Commonwealth of Independent States, STIRPAT model, Pooled mean group (PMG) estimator |
| JEL: | Q01 Q59 O10 |
| Date: | 2022–07 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iefpro:13015649&r= |
| By: | Adong, Annet; Ochen, Ronald; Achola, Jolly |
| Abstract: | The Food Price Monitor: East Africa is a monthly report developed for the Food Security Portal (FSP), facilitated by IFPRI, with the goal of providing clear and accurate information on price trends and variations in selected maize and rice markets throughout East Africa. The reports are intended as a resource for those interested in maize and rice markets in East Africa, namely producers, traders, consumers, or other agricultural stakeholders. |
| Keywords: | EAST AFRICA, AFRICA SOUTH OF SAHARA, AFRICA, commodities, prices, food prices, wholesale prices, retail prices, maize, rice, |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:fsprep:eajanuary2022&r= |
| By: | Julia Levine; Stephan Seiler |
| Abstract: | We analyze structural state dependence in brand choice using variation from brand switching during stock-outs caused by hurricanes. We derive a simple test for structural state dependence based on the time-series of choice persistence for households affected by the stock-outs. Using data from the bottled water category, we show that demand increases substantially before hurricanes, causing households to purchase different brands. We find that purchase behavior reverts back to its pre-hurricane trajectory immediately after a hurricane and we are not able to reject the null hypothesis of no structural state dependence. By contrast, the common approach of estimating structural state dependence based on temporal price variation via a discrete choice model yields a positive effect using data for the same category. We argue that our approach is better suited to identify the causal impact of past choices because it requires fewer assumption and is based on more plausibly exogenous variation in brand switching due to stock-outs. |
| Keywords: | brand choice, brand loyalty, state dependence, preference heterogeneity |
| JEL: | C23 C51 L81 M31 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_9889&r= |
| By: | Tseday J. Mekasha (University of Copenhagen, Department of Economics); Kenneth Mdadila (University of Dar es Salaam, School of Economics); Jehovaness Aikaeli (University of Dar es Salaam, School of Economics); Finn Tarp (University of Copenhagen, Department of Economics) |
| Abstract: | In this paper we explore the link between commodity dependence and vulnerability to poverty in rural Tanzania with a particular focus on coffee-growing households. Even if the vulnerability rate is quite high in rural Tanzania, our results show, on average, that coffee growers have a lower probability of being poor and vulnerable compared to non-growers. However, when coffee growers are disaggregated into small and large, we see that the result is mainly driven by large coffee growers. For small coffee growers, on the other hand, we do not find evidence to suggest that they are different from non-growers in terms of both poverty and vulnerability. When we disaggregate vulnerability into its components, poverty-induced vs risk-induced vulnerability, we find co ee growers to have a relatively higher probability of facing risk-induced vulnerability compared to non-growers. There are, however, heterogeneities in terms of the size of coffee growers. In particular, relative to non-growers, small coffee growers have a relatively higher probability of facing risk-induced vulnerability. On the other hand, conditional on being vulnerable, large coffee growers do not appear to have a statistically significant difference in their probability of facing a riskinduced vulnerability compared to non-coffee growers. These results indicate not only the need for vulnerability-reducing policies but also the importance of identifying the source of vulnerability as the choice of the right type of policy intervention depends on understanding the causes of vulnerability. |
| Keywords: | Commodity dependence, Poverty; Vulnerability; Tanzania |
| JEL: | I32 D31 |
| Date: | 2022–04–22 |
| URL: | http://d.repec.org/n?u=RePEc:kud:kuderg:2214&r= |
| By: | Clément Nedoncelle (UMR PSAE - Paris-Saclay Applied Economics - AgroParisTech - Université Paris-Saclay - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Julien Wolfersberger (UMR PSAE - Paris-Saclay Applied Economics - AgroParisTech - Université Paris-Saclay - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, Climate Economics Chair - Université Paris Dauphine-PSL - PSL - Université Paris sciences et lettres) |
| Abstract: | We study how temperature shocks affect exports in developing countries both at the firm-and aggregate-level. We find that while the average effect of temperature rise on exports is negative, small firms are disproportionately harmed compared with others. This feature is robust across subsamples, specifications and confounding factors. We show that this heterogeneity across firms has aggregate implications. In particular, we find that the overall trade deterring effect of temperatures would be significantly larger in absence of the largest exporters. We also show that firm structure matters for exports under future climate change scenarios, with large firms reducing the costs of predicted temperature rise. We conclude that the existing firm distribution in developing countries may increase the cost of climate change. |
| Abstract: | Nous étudions comment les chocs de température affectent les exportations dans les pays en développement à la fois au niveau des entreprises et au niveau global. Nous constatons que si l'effet moyen de la hausse des températures sur les exportations est négatif, les petites entreprises sont touchées de manière disproportionnée par rapport aux autres. Cette caractéristique est robuste à travers les sous-échantillons, les spécifications et les facteurs confondants. Nous montrons que cette hétérogénéité entre les entreprises a des implications globales. En particulier, nous constatons que l'effet dissuasif global des températures sur le commerce serait nettement plus important en l'absence des plus grands exportateurs. Nous montrons également que la structure des entreprises a une importance pour les exportations dans les scénarios de changement climatique futurs, les grandes entreprises réduisant les coûts de l'augmentation prévue des températures. Nous concluons que la distribution actuelle des entreprises dans les pays en développement peut augmenter le coût du changement climatique. |
| Keywords: | Climate change,Economic development,International trade,Firms Structure |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-03753384&r= |
| By: | Kastoryano, Stephen; Vollaard, Ben (Tilburg University, Center For Economic Research) |
| Keywords: | Enforcement; Regulation; Environmental economics,; Fisheries |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:tiu:tiucen:c02852eb-237c-4c6b-af7c-96691f45cc18&r= |
| By: | Bonev, Petyo; Matsumoto, Shigeru |
| Abstract: | This paper empirically evaluates different Alternative Dispute Resolution methods. Using a novel dataset on environmental disputes from Japan, we show that consensus-based approaches such as mediation lead on average to shorter duration and higher satisfaction than top-down approaches such as arbitration. Moreover, our findings suggest that the benefits depend on the transaction cost of resolving a dispute: while disputes with high transaction costs tend to benefit more from top-down approaches, disputes with lower costs benefit more from consensual resolution methods. |
| Keywords: | Environmental policy, environmental disputes, Alternative Dispute Resolution, Coase Theorem |
| JEL: | C21 C41 C78 D04 D74 D83 Q34 Q53 Q58 |
| Date: | 2022–08 |
| URL: | http://d.repec.org/n?u=RePEc:usg:econwp:2022:08&r= |
| By: | Donn. L. Feir; Rob Gillezeau; Maggie E.C. Jones |
| Abstract: | In the late nineteenth century, the North American bison was brought to the brink of extinction in just over a decade. We demonstrate that the loss of the bison had immediate, negative consequences for the Native Americans who relied on them and ultimately resulted in a permanent reversal of fortunes. Once amongst the tallest people in the world, the generations of bison-reliant people born after the slaughter lost their entire height advantage. By the early twentieth century, child mortality was 16 percentage points higher and the probability of reporting an occupation 29.7 percentage points lower in bison nations compared to nations that were never reliant on the bison. Throughout the latter half of the twentieth century and into the present, income per capita has remained 28 percent lower, on average, for bison nations. This persistent gap cannot be explained by differences in agricultural productivity, self-governance, or application of the Dawes Act. We provide evidence that this historical shock altered the dynamic path of development for formerly bison-reliant nations. We demonstrate that limited access to credit constrained the ability of bison nations to adjust through respecialization and migration. |
| JEL: | J15 N31 N32 |
| Date: | 2022–08 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:30368&r= |