|
on Efficiency and Productivity |
|
Issue of 2016‒05‒08
twenty-six papers chosen by |
| By: | Majiwa, Eucabeth Bosibori Opande; Lee, Boon; Wilson, Clevo |
| Abstract: | Total factor productivity (TFP) of agriculture for eighteen African countries is measured using panel data from Food and Agriculture Organization of the United Nations database for the period 1980 to 2007. Using the Färe-Primont productivity index, TFP was decomposed into measures of technical and efficiency change. The efficiency change was further decomposed into measures of technical, mix and scale efficiency changes. The results reveal TFP and technical change growth rates of 0.85% and 1% respectively. In the same period there is a decline in total technical productivity efficiency, mix efficiency, residual scale efficiency and scale mix efficiency change of 0.15%, 0.23%, 0.02% and 0.25% respectively while technical efficiency improved by 0.1%. From the results it is evident that the main driving force of TFP growth is technological progress while negative efficiency levels are contributing to reduced average productivity growth. Promotion of irrigation facilities, improving governance, improving mechanization and reducing land fragmentation are identified as necessary measures to improve TFP growth. |
| Keywords: | Färe-Primont TFP index, technical efficiency, scale, mix efficiency changes, technical change, Production Economics, Productivity Analysis, |
| Date: | 2015–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:212769&r=eff |
| By: | Tayebi, Zahra; Fulginiti, Lilyan E. |
| Abstract: | The main purpose of this research is to determine the potential impact of weather variables on agricultural productivity for Afghanistan, Iran, Pakistan, Turkey and Syria. A translog production function was used in estimating TFP growth in agriculture over the period 1980-2010. Precipitation, temperature, drought and irrigation were included in the analysis. The results indicate increasing agricultural productivity during the period with innovations contributing approximately 30% to agricultural output growth. Temperature and precipitation play a significant role in agricultural production and most frequent extreme drought episodes and irrigation affect, substantially, agricultural productivity growth in the region. |
| Keywords: | Agricultural productivity, Climate change, Greater Middle East, Stochastic frontier, Agricultural and Food Policy, International Development, Production Economics, Productivity Analysis, |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea16:230019&r=eff |
| By: | Kabata, Tshepelayi |
| Abstract: | This paper appraises the environmental performance of US agriculture with respect to water pollution from pesticides through a parametric approach. The performance of the 48 continental States is evaluated through a translog stochastic and hyperbolic distance function allowing an environmentally adjusted productivity index and its components technical and efficiency change from 1960-1996. Water pollution is captured by four indicators of risk developed by Ball et al. (2004) : i) risk to human health from exposure to pesticide leaching; ii) risk to human health from exposure to pesticide runoff; iii) risk to aquatic life from exposure to pesticide leaching and iv) risk to aquatic life from exposure to pesticide runoff. The resulting environmentally adjusted productivity growth is slower than the conventional one but still driven by technical progress. Further finding reveals that innovation in the sector is biased toward crop and livestock rather than pollution mitigation. Results also show a potential for crops and livestock expansion and a contraction in water pollution and inputs. |
| Keywords: | Environmental Economics and Policy, Land Economics/Use, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:212626&r=eff |
| By: | Nehring, Richard; Hallahan, Charlie |
| Abstract: | This paper estimates performance measures on cotton farms, following an input distance stochastic production frontier (SPF) approach and compares the relative performance of farm operator households with and without off-farm wages and salaries. We use 2002 to 2014 USDA data for twelve major cotton producing states-Alabama, Arizona, Arkansas, California, Georgia, Louisiana, Mississippi, Missouri, North Carolina, South Carolina, Tennessee, and Texas-- identifying different performance measures. Previous studies suggest that off-farm work influences economic performance—by “improving” managerial performance. We find that off-farm income boosts scale efficiency on larger operations for the data set analyzed, and is also consistent with significantly higher farm and household returns. We also find that the number of hours worked off-farm by the operator contributes to lower technical efficiency but we find no impact on technical efficiency for hours worked off-farm by the spouse (80 percent of total hours worked off-farm). |
| Keywords: | input distance function off-farm hours scale efficiency cotton, Consumer/Household Economics, Farm Management, Production Economics, |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea16:230413&r=eff |
| By: | Cordero, José Manuel; Pedraja-Chaparro, Francisco; Pisaflores, Elsa C.; Polo, Cristina |
| Abstract: | Measuring local government efficiency is a complex task that has to take into account that they usually operate in a heterogeneous context. Therefore, the estimation of relative efficiency measures of their performance needs to account for the effect of contextual and exogenous variables on the production process. This should assure that the respective measures adequately reflect the portion of inefficiency that may be attributable to local authorities. In this paper, we apply time-dependent conditional frontier estimators to assess the performance of the 278 Portuguese mainland municipalities for the 2009-2014 period. By applying this nonparametric approach, we can avoid the strong assumptions on the specification of the estimated production function required by traditional two-stage methods. Furthermore, we examine the effect of contextual and exogenous variables on municipal efficiency levels and technological change. The results reveal that the recent local reforms introduced after the bailout agreement have slightly enhanced the performance of local authorities, but only for small and medium-sized municipalities. |
| Keywords: | Efficiency, Local governments, Operational environment, Nonparametric estimation, Conditional approach |
| JEL: | D24 H71 H83 |
| Date: | 2016–04–12 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:70674&r=eff |
| By: | Afzal, Muhammad; Ahmed, Tanvir; Ahmed, Gulzar |
| Abstract: | Global warming is exacerbating climate affect on agricultural productivity. The objective of present study is the empirical assessment of climate change on three major agricultural crops of Punjab, Pakistan. A variant of Cobb-Douglas production function is used for the panel data of the districts of Punjab covering period 1981 to 2012.Overall findings of the study reveal that temperature has positive impact on the production of wheat crops during the planting and harvesting stage. However, temperature negatively affects the production of wheat during the flowering stage. Rainfall has negative association with the production of wheat during all three stages. Further, results indicate that rainfall, minimum temperature and humidity positively affect the production of rice crop during planting and negatively affect during harvesting. Impact of rainfall during all three stages of cotton crop has positive effect on its production. Nevertheless, increase in the temperature during first and second stage has negative effect on the production of cotton crop, but during third stage it has positive impact. On the basis of empirical analysis, this study suggests that Government should conduct seminars and workshops for the awareness of farmers to mitigate the worse effect of climate change. Moreover, development of new varieties of seeds and allocation of more resources should be encouraged to provide the security against the problems of climate change. |
| Keywords: | wheat; Rice; Cotton; Temperature; Rainfall; Humidity; Production; Punjab |
| JEL: | Q15 Q54 |
| Date: | 2016–01–10 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:70958&r=eff |
| By: | Seok, Jun Ho; Saghaian, Sayed H. |
| Abstract: | Service sectors are really important since most of service sectors are used by other sectors (forward linkage). In this reason, the service trade may have huge effects on domestic industries. There has been the scare research between the service trade and domestic industries especially in agricultural and food industry sector since there is scare in data. The purpose of this paper is that figures out the relationship between the service trade and the TFP (Total Factor Productivity) of domestic agri-food industry. Moreover, this paper checks the difference between effect of service trade on the agricultural sector and the food sector since the food sectors has the processed industry characteristics compared to agricultural sector. Using multilevel model and STAN data set in OECD, this paper finds that the service trade has a positive effect on the domestic food industry considering the forward linkage of service sectors on food sectors. According to the result of random effect, the country with higher competitive in food industry has a small coefficient of service linkage on food sector compared to the country with lower competitive in food industry. |
| Keywords: | Service Trade, Total Factor Productivity (TFP), Multilevel Model, International Relations/Trade, |
| Date: | 2016–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea16:229705&r=eff |
| By: | Valmari, Nelli |
| Abstract: | Despite the fact that multiproduct firms constitute a considerable share of firms and account for an even greater share of production, virtually all production function estimates are based on the assumption that firms are single-product producers. The single-product assumption is made due to lack of data on input allocation across the various product lines multiproduct firms operate. I provide a method to estimate product-level production functions without observable input allocations. The empirical application and Monte Carlo simulations show that the single-product firm assumption leads to biased parameter and productivity estimates and overestimated productivity differences between firms. |
| Keywords: | Multiproduct firm, production function, productivity |
| JEL: | D24 L11 L25 |
| Date: | 2016–03–08 |
| URL: | http://d.repec.org/n?u=RePEc:rif:wpaper:37&r=eff |
| By: | Nwigwe, Cecilia; Okoruwa, Victor; Obi-Egbedi, Oghenerueme |
| Abstract: | The present study analysed the technical efficiency and technological gaps (TGR/MTR) in three major beef cattle production systems in Nigeria, using the stochastic metafrontier approach. The usual methods of dealing with technological differences makes it difficult to separate “technology gaps” from technical inefficiency within a given system, hence the need for an analytical framework such as metafrontier which allows us to distinguish between the two. Results show that technical inefficiency exists in the three production systems but the ranching system is more efficient, in that it has a higher MTR. The average pooled technical efficiency TE with respect to the metafrontier was estimated to be 0.56; this suggests that there is scope to improve beef output in Nigeria by up to 44% of the total potential, giving existing technologies and inputs. |
| Keywords: | Beef cattle, production systems, technical efficiency, technological gap ratios, Nigeria, Livestock Production/Industries, Production Economics, C1, C8, C42, C50, |
| Date: | 2015–12 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:229377&r=eff |
| By: | Arriya Mungsunti (Charles Stuart University) |
| Abstract: | The muang fai irrigation system is a traditional, small-scale, communal irrigation system that has been practiced for centuries in northern Thailand. The value of this traditional system is currently being challenged by modernization, specifically through the introduction of various alternative irrigation technologies, such as the privately-owned underground pump irrigation. This study attempted to determine the various factors that influence farmers’ participation in the muang fai Sop Rong in Chiang Mai province and compared this traditional irrigation system with the underground pump irrigation system by determining which is better in terms of generating economic and environmental benefits. To do this, longan growing farmers, both muang fai system members and those who use underground pumps, were surveyed. The data generated was used to estimate a Logistic model of muang fai participation in an attempt to explain what factors affect the likelihood of a farmer joining the muang fai instead of installing underground pump irrigation. The Propensity Score Matching (PSM) technique was used to estimate the impact of muang fai participation on farm productivity and water use efficiency. Study results suggest that farm characteristics and several social and economic factors influence the possibility of muang fai participation. Results indicate that the farm’s distance to the closest muang fai canal strongly affects farmer participation. The size of the farm is also found to be quite a strong predictor of farmer participation. The relationship is found to be non-linear where probability of participation in muang fai first increases with farm size, but then decreases after a point. |
| Keywords: | Irrigation system, farming, water efficiency, Thailand |
| Date: | 2016–04 |
| URL: | http://d.repec.org/n?u=RePEc:eep:report:rr2016048&r=eff |
| By: | Brenes-Munoz, Thelma |
| Abstract: | Previous studies of the industrial organization field find that the relationship between firm performance and growth is weak. The objective of this paper is to test this relationship at different quantiles of the firm growth distribution. We also explore the effect of technology gaps and export status on growth. For this, we use Penalized Quantile Regression with Fixed Effects on 420 Chilean agribusiness firms. Key results show that performance, measured as technical efficiency, has a significant and heterogeneous impact on revenue growth. The effect is stronger on slow growing firms: one point increase in technical efficiency increases revenue growth by 1.2 % at the 0.10 quantile, the effect is 0.4 % at the 0.90 quantile. Hence, two key aspects shall be considered in future studies of firm growth and performance: first, to use adequate indicators for performance which capture the entirety of the production process, and second, to consider the non-linearity of their relationship. |
| Keywords: | firm growth, technical efficiency, quantile regression, panel data, fixed effects, Agricultural and Food Policy, Research and Development/Tech Change/Emerging Technologies, L20, D22, C21, C23, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:229063&r=eff |
| By: | Sneyers, Astrid; Vandeplas, Anneleen |
| Abstract: | In agriculture, women have been found to be less productive than men for a variety of reasons. Most of the studies in this domain focus on crop production, and so far there has been little evidence on the impact of gender on productivity in dairy. This paper provides empirical evidence of the impact of female decision-making power on dairy productivity in India, based on a unique household-level dataset collected in 2010 in 50 villages in Andhra Pradesh, a state in the South of India. Our analysis suggests that higher productivity is achieved in households where women take dairy production-related decisions. While caution is due in drawing overly strong conclusions, our results provide a more nuanced view on the impact of gender on agricultural productivity than the one usually put forward in the literature. |
| Keywords: | agricultural productivity, dairy sector, gender, female decision-making power, Agribusiness, Livestock Production/Industries, Q18, O13, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:212062&r=eff |
| By: | Silva, Felipe; Perrin, Richard K.; Fulginiti, Lilyan E. |
| Abstract: | Deforestation has been a topic of debate in climate change discussions due to its effect on CO2 emissions. The Amazon Forest, the biggest tropical forest in the world, is located along the north of Brazil. There, expansion of soy and corn production has pushed the production of livestock and other crops toward the Amazon forest, which involves a tradeoff between the area in forests versus these activities. We estimated the tradeoff between agriculture and forest for the 771 municipalities of the Amazon region by finding the production possibility frontier, using Data Envelopment Analysis. This tradeoff was estimated based on directional output distance functions. We found that, on average, 58% of observable total revenue from livestock, grains and timber production would be foregone to decrease deforestation in 2006 by 93%. We also estimated determinants of efficiency differences across states, which suggested that environmental efficiency was enhanced in municipalities with higher development indexes. |
| Keywords: | Environmental Economics and Policy, Production Economics, Q51, Q54, C61, |
| Date: | 2016–01–22 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea16:230040&r=eff |
| By: | Muange, Elijah N.; Godecke, Theda; Schwarze, Stefan |
| Abstract: | The use of improved crop varieties is key to increasing food production, but in Sub- Saharan Africa traditional varieties still dominate smallholder farming. Lack of information is a major constraint to the adoption of improved varieties and the role of social networks in their diffusion is increasingly being studied. Social networks can, however, also affect the efficiency with which farmers use these technologies. In this paper we investigate the influence of social networks on technical efficiency of smallholder cereal producers. Using the case of Tanzania, we apply stochastic frontier analysis on data from sorghum and maize producers. Results show that the effects of social networks on efficiency differ by crop. Inter-village networks positively influence technical efficiency of improved sorghum varieties, but have no effect in case of maize. We further find that links to public extension officers increase efficiency of improved maize varieties. Some wider research and policy implications are discussed. |
| Keywords: | Improved varieties, social networks, information, technical efficiency, stochastic frontier, Agribusiness, Research and Development/Tech Change/Emerging Technologies, D24, D83, O33, Q16, |
| Date: | 2015–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:230221&r=eff |
| By: | Santos, João; Domingos, Tiago; Sousa, Tânia; St. Aubyn, Miguel |
| Abstract: | Neoclassical models disregard the role of energy in production, equating a factor's output elasticity with its cost share, but failing to explain growth without a residual term. In contrast, ecological economics acknowledges energy's importance in production, regardless of its cost share. The aggregate production function (APF) concept, central to neoclassical theory, is also disputed. We apply cointegration analysis to test for APFs between output, capital, and labor. We investigate the inclusion of energy inputs, measuring energy's capacity to generate productive work (useful exergy). Plausible APFs must verify cointegration and Granger-causality between output and inputs; and non-negative output elasticities. This method recognizes cases where: a) plausible APFs don't exist; b) energy impacts growth directly; c) energy impacts growth indirectly, through other inputs. We apply the method to Portugal (1960-2009), considering standard and quality-corrected capital and labor measures. Plausible APFs are rarely obtained for capital-labor models. When they are, the residual growth component is large, and output elasticities disagree with historical cost shares. However, the residual is virtually eliminated for capital-labor-energy models with two cointegration relationships: a) a capital-labor APF, with output elasticities matching historical cost shares; b) a function estimating capital from useful exergy. These models reconcile energy's significance in production with cost-share neoclassical assumptions. |
| Keywords: | Cointegration; Aggregate production function; Cost shares; Solow residual; Useful exergy |
| JEL: | C01 E13 O47 Q43 |
| Date: | 2016–04 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:70850&r=eff |
| By: | Bin Ni (Graduate School of Economics, Osaka University) |
| Abstract: | Technology spillover induced by foreign direct investment has been proved to be an important channel to boost the productivity growth of local firms in the host country, especially in the context of developing economies. However, the empirical evidence remains inconsistent as to what extent the scale of spillover is affected by the productivity gap between foreign investors and local firms. This paper attempts to make clear such mechanism by applying Vietnamese firm-level data. Focusing on Asian investors, we show that the relationship between the productivity gap and vertical spillover takes an inverted-U shape. To be specific, we use stepwise chow test to decide on the cutoff value of total factor productivity (TFP) as the grouping criteria, and divide investors into low, middle and high-TFP groups. The results reveal that local suppliers in Vietnam can benefit the most from the Asian investors with middle-level TFP, whereas the benefits from the other two groups fade away. The finding is strongly robust even after we control the other spillover-influential factors such as firms' own effort to innovate, foreign firms' ownership, country and industry heterogeneity, and no matter whether we use stochastic frontier or Levinsohn & Petrin measurement of TFP. It thus provides novel evidence that investors with advanced technology do not necessarily diffuse their know-how to local partners. This implies it is important that both Vietnamese local firms and investors with superior technology work in the same direction to stimulate more corporations with each other. |
| Keywords: | technology spillover, productivity gap, firm-level data, Vietnam |
| JEL: | D22 F21 Q56 |
| Date: | 2016–03 |
| URL: | http://d.repec.org/n?u=RePEc:osk:wpaper:1604&r=eff |
| By: | Sene, Ligane Massamba |
| Abstract: | Peanut is a major source of income for many farmers in Senegal. However, this sector faces several problems in all the segments of the value chain such as yield decline and serious market disturbances. Agricultural production has to be increased to address these issues. This can be done by reinforcing the connectivity of farmers. This study aims to evaluate connectivity as a catalyst for agricultural productivity. An appropriate measure of connectivity integrating various dimensions is computed and an estimate of multilevel mixed-effects linear regression shows its positive and meaningful effect on the output. Results show that Information and Communication Technologies should be promoted and social networks should be reinforced in agricultural activities. One option is to help Rural Producer Organizations better develop and to be a gateway as community access points. |
| Keywords: | Agricultural productivity, ICT, social network, connectivity, Senegal, Crop Production/Industries, O13, Q16, Q13, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:212263&r=eff |
| By: | Perrett, Edward |
| Abstract: | The changing fortunes of the Australian sheepmeat and wool sectors have led to dramatic changes to the national flock. In recent years the profitability of the sheepmeat sector has provided mixed signals to producers to simultaneously sell to capitalise on high prices, particularly for mutton and breeding stock, while also shifting enterprises towards dual purpose (meat and wool) and specialist lamb production systems. This essay provides a summary of changes to the Australian sheep flock in the past twenty years, including the growth of the sheepmeat sector and the decline of the wool sector. It considers drivers of profitability in the sheep industry, comparing the recent economic performance of prime lamb, dual purpose, and wool flocks. It is suggested that there are a number of common factors evident in the most profitable sheep businesses. A discussion about risk management and volatility helps explain the rise of dual production systems, the persistence of risk-averse wool enterprises, and highly productive but volatile returns for specialist prime lamb producers. Flock structure is identified a major determinant of profitability, with breeding ewes critical to production. The challenges posed will also shape the future of the Australian sheep flock. Fertility and drought-induced sell-off are noted as major factors affecting changes to the Australian flock, which could be exacerbated by an increasingly variable and extreme climate. Finally, this essay considers the future size and composition of the Australian sheep flock. A flock structure model is used to estimate the effects of hypothetical changes to marking and slaughter rates. It is concluded that it remains possible to sustain production and kill the 'Golden Sheep', provided there is a focus on productivity and reproduction efficiency to ‘optimise’ the remaining flock. |
| Keywords: | Livestock Production/Industries, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:auagpe:234412&r=eff |
| By: | hassene ben mbarek (ESSEC business school); rajhi mohammed TAher (university of economic sciences and management) |
| Abstract: | the notion of governance has been the subject of several disputes between researchers aimed at property assess the existing relationship between a system of governance within the company and the performance of the latter, it verify that good governance can ensure a properfunctioning of the company and, therefore, to improve performance. In this context, a central question revolves around the assessment of the impact of the system of governance on the performance of the Tunisian banks saw that the financial sector has an important role in the economic development process. We interesting in this article to the relationship between a system of governance and performance within the Tunisian banks, via a literature review and empirical analysis, in order to better design the different results obtained by previous studies. Theoretically, we return as a first step, on the paradox of the performance and governance, namely definition, typology and extent. Then, in a second step, we centralize the impact of a system of governance on the performance of the Tunisian banks. |
| Keywords: | governance, performance, bankig sector |
| JEL: | C19 G21 L21 |
| URL: | http://d.repec.org/n?u=RePEc:sek:ibmpro:3406088&r=eff |
| By: | Amponsah, Lawrence |
| Abstract: | Using annual time series data for Ghana, the current study investigates the public investment and agricultural productivity nexus for the period 1961-2013. The empirical assessment is done by using the Johansen test (JT), the Vector Error Correction Model (VECM), and the Ordinary Least Squares (OLS) regression test. The results indicate significant stable long run link between public investment and agricultural productivity in the JT. However, there is insignificant short run link between public investment and agricultural productivity in the VECM. The results of the OLS indicate negative significant link between investment and agricultural productivity. The findings suggest that Public investment has led to a decrease in agricultural productivity. Policy makers should manage public investment very well in order to achieve positive impact on the agricultural sector. The argument in support of public investment in agriculture sector needs to be re-examined as the current findings does not support the debate. Future study should examine the current issue using accounting for causality and structural breaks issues since the present study did not consider these issues. |
| Keywords: | Agricultural economics, public investment, agricultural sector, economic growth, long run, short run. |
| JEL: | H54 Q20 Q58 |
| Date: | 2016–02–15 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:70924&r=eff |
| By: | Yuichiro Yoshida (Graduate School for International Development and Cooperation, Hiroshima University); Yuki Yamamoto (Graduate School of Fisheries and Environmental Sciences, Nagasaki University); Shinji Kaneko (Graduate School for International Development and Cooperation, Hiroshima University) |
| Abstract: | None |
| Keywords: | data cleaning; |
| URL: | http://d.repec.org/n?u=RePEc:hir:idecdp:6-1&r=eff |
| By: | Pedro Bento (Texas A&M University, Department of Economics) |
| Abstract: | I develop a general equilibrium model in which patent protection can increase or decrease the costs of sequential innovation, original innovation, and imitation. Depending on these relative effects, protection can in theory increase or decrease markups, imitation, innovation, growth, and aggregate productivity. I discipline the model using data from several different sources, and find that weakening protection in the U.S. would lead to no change in markups and imitation, no change in long-run growth, a more than doubling of the number of firms, and an increase in aggregate productivity of 9 percent. |
| Keywords: | patent protection, firm size, productivity, innovation, imitation, competition |
| JEL: | O1 O3 O4 |
| Date: | 2016–04–11 |
| URL: | http://d.repec.org/n?u=RePEc:txm:wpaper:20160411-001&r=eff |
| By: | Janzen, Matthew G.; Riley, John Michael; Coatney, Kalyn T. |
| Abstract: | The evolution of the factors that impact profitability will always be of concern for agribusiness firms. The cattle feeding industry is continually evolving as a result of technological advancements and evolving population genetics aimed to meet consumer demand. To empirically identify and make relevant the potential for changing importance of various profit components, symmetric variables and standardized betas were directly compared to research conducted in the 1990’s using a more recent data series ranging from 2005 to 2013. The results of the analysis indicate that output prices of fed cattle and input prices of feeder cattle, though still the most influential, are now less impactful to feedlot profits relative to animal performance variables (e.g. average daily gain and feed-to-gain). These results provide intuitive reasoning for the recent development and use of beta agonists to mitigate the risk of lower performance, at the potential cost of negatively impacting consumer demand. |
| Keywords: | Profitability, Cattle Feeding, Agribusiness, Livestock Production/Industries, Q12, Q13, D24, |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea16:230104&r=eff |
| By: | Gibbons, Steve; Lyytikainen, Teemu; Overman, Henry G; Sanchis-Guarner, Rosa |
| Abstract: | This paper estimates the impact of new road infrastructure on employment and productivity using plant level longitudinal data for Britain. Exposure to transport improvements is measured through changes in accessibility, which is calculated at a detailed geographical scale from changes in minimum journey times along the road network. These changes are induced by the construction of new road link schemes. We deal with the potential endogeneity of scheme location by identifying the effects of changes in accessibility from variation across wards close to the scheme. We find substantial positive effects on employment and numbers of plants for small-scale geographical areas (electoral wards). In contrast, for firms already in the area we find negative effects on employment coupled with increases in output per worker and wages. A plausible interpretation is that new transport infrastructure attracts transport intensive firms to an area, but with some cost to employment in existing businesses. |
| Keywords: | accessibility; employment; productivity; transport |
| JEL: | D24 O18 R12 |
| Date: | 2016–04 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:11239&r=eff |
| By: | Adusumilli, Naveen; Davis, Stacia; Fromme, Daniel |
| Abstract: | Addressing irrigation water efficiency continues to emerge as one of the potential solutions to minimize irrigation water use, improve water quality, and enhance soil health. Despite the clear importance of financial information in decision making regarding adoption of irrigation tools, little information is available regarding the profitability outlook of such adoption. Lack of assessment of costs and returns could lead to producers resisting adoption citing profit reductions. Hence, a cost-assessment using the financial information is necessary to evaluate the tools’ economic outlook. By using long-term projections of input prices, crop yield, and crop prices, this paper develops a financial analysis of irrigation using surge valves by calculating annual cash flows and net present value. The analysis is based on demonstration plot results and anecdotal estimates related to water savings and yield improvements in corn and soybeans in northeast Louisiana. The positive estimates for net present value indicates that an investment in irrigation efficiency improvement is an economically sound choice. These estimates can enhance the adoption of irrigation efficiency improvement practices by providing an initial understanding of the overall profitability independent of short-term management decisions. |
| Keywords: | Irrigation, Efficiency, Net Present Value, Profitability, Production Economics, Resource /Energy Economics and Policy, Q10, Q25, |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea16:229791&r=eff |
| By: | Griffin, Terry; Ibendahl, Gregg; Stabel, Jayce |
| Keywords: | profitability, transition probabilities, Markov, Agricultural Finance, |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea16:230108&r=eff |