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NEP: New Economics Papers
Agricultural Economics
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Edited by: Angelo Zago
http://ideas.repec.org/e/pza49.html
Universita degli Studi di Verona
Date: 2005-09-29
Papers: 13
This document is in the public domain, feel free to circulate it.
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In this issue we have:
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1. Multilateral Trade and Agricultural Policy Reforms in Sugar
Markets (Revised)
Elobeid, Amani; Beghin, John C.
2. Economic reform in the Agricultural sector of Nigeria: Merits
and Demeits
Obayelu Abiodun Elijah; Okoruwa V.O
3. Dams
Esther Duflo; Rohini Pande
4. Examining Changes in the Value of Rural Land in New Zealand
between 1989 and 2003
Steven Stillman
5. Driver costs in small firms: empirical analysis for farms
Josep Maria Argil?s and Josep Garcia Bland?n
6. Policy to Encourage Carbon Sequestration in Plantation Forests
Suzi Kerr; Emma Brunton; Ralph Chapman
7. Boards in Agricultural Cooperatives: Competence, Authority,
and Incentives
Hendrikse, G.W.J.
8. Land reform with human capital: A new analysis using the
theory of economic growth and the theory of the firm
Miguel Rocha de Sousa
9. The likely regional impacts of an agricultural emissions
policy in New Zealand: Preliminary analysis
Isabelle Sin; Emma Brunton; Joanna Hendy; Suzi Kerr
10. Land Reforms and Economic Development
Gersbach, Hans; Siemers, Lars
11. Vertical Product Differentiation, Entry-Deterrence
Strategies, and Entry Qualities
Noh, Yong-Hwan; Moschini, GianCarlo
12. Technology Fees Versus GURTs in the Presence Of Spillovers:
World Welfare Impacts
Lence, Sergio H.; Hayes, Dermot J.
13. Small Fish - Big Issues The Effect of Trade Policy on the
Global Shrimp Market
Debaere, Peter
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1. Multilateral Trade and Agricultural Policy Reforms in Sugar
Markets (Revised)
Elobeid, Amani
Beghin, John C.
We analyze the impact of trade liberalization, removal of
production subsidies, and elimination of consumption distortions
in world sugar markets using a partial-equilibrium international
sugar model calibrated on 2002 market data and current policies.
The removal of trade distortions alone induces a 27% price
increase while the removal of all trade and production
distortions induces a 48% increase by 2011/12 relative to the
baseline. Aggregate trade expands moderately, but location of
production and trade patterns change substantially. Protectionist
OECD countries (the EU, Japan, the US) experience an import
expansion or export reduction and significant contraction in
production in unfettered markets. Competitive producers in both
OECD countries (Australia) and non-OECD countries (Brazil, Cuba),
and even some protected producers (Indonesia, Turkey), expand
production when all distortions are removed. Consumption
distortions have marginal impacts on world markets and location
of production. We discuss the significance of these results in
the context of mounting pressures to increase market access in
highly protected OECD countries and the impact on non-OECD
countries.
Keywords: agricultural policy, Doha, domestic subsidies, sugar,
trade liberalization, WTO.
Date: 2005-09-26
URL: http://d.repec.org/n?u=RePEc:isu:genres:12419&r=agr
2. Economic reform in the Agricultural sector of Nigeria: Merits
and Demeits
Obayelu Abiodun Elijah (University of Ibadan, Ibadan Oyo
State Nigeria)
Okoruwa V.O (University of Ibadan Ibadan Oyo state, Nigeria)
The main objective of this working paper was to look at the
economic reforms and there impacts in the Nigeria agricultural
sector using some indicators such as the Gross domestic Products,
prices of agricultural product,prices of agricultural inputs,
effects on poverty, effects on both imports and export effect on
quality of agricultural products etc.This was however done
through extensive review of various forms of economic reform the
sectors since the pre colonial era and comparing there effects
both negative and positives on all the stakeholders: the farmers,
consumers as well as the government and the economy as a whole.
The result shows that The Nigerial economic reforms in the
agricultural sector is the best option only if nigeria government
is honest in the execution of the reform exercise. This will in
know doubtenable the country to compete favourably with other
countries of the world interm of provision of food to her
citizenry as well as generation of foreign exchange in boosting
the economy
Keywords: Economic reform, agricultural sector, Nigeria, merits
and demerits
JEL: O P
Date: 2005-09-14
URL: http://d.repec.org/n?u=RePEc:wpa:wuwpdc:0509014&r=agr
3. Dams
Esther Duflo (Massachusetts Institute of Technology)
Rohini Pande (Economic Growth Center, Yale University)
The construction of large dams is one of the most costly and
controversial forms of public infrastructure investment in
developing countries, but little is known about their impact.
This paper studies the productivity and distributional effects of
large dams in India. To account for endogenous placement of dams
we use GIS data and the fact that river gradient affects a
district's suitability for dams to provide instrumental variable
estimates of their impact. We find that, in a district where a
dam is built, agricultural production does not increase but
poverty does. In contrast, districts located downstream from the
dam benefit from increased irrigation and see agricultural
production increase and poverty fall. Overall, our estimates
suggest that large dam construction in India is a marginally cost-
effective investment with significant distributional implications,
and has, in aggregate, increased poverty.
Keywords: Dams, Development Planning, Program Evalluation, India
JEL: O21 O12 H43 H23
Date: 2005-08
URL: http://d.repec.org/n?u=RePEc:egc:wpaper:923&r=agr
4. Examining Changes in the Value of Rural Land in New Zealand
between 1989 and 2003
Steven Stillman (Motu Economic & Public Policy Research)
This paper uses valuation data from Quotable Value New Zealand
to examine changes in the value of the rural land in New Zealand
between 1989 and 2003. The value of rural land reflects the
profitability of agriculture as well as the returns to
alternative land uses, and has a large impact on the prosperity
of rural areas. The paper highlights the importance of both
changes in land use and changes in the value of land in different
uses in explaining overall changes in land values. It also
examines the relationship among productive characteristics of the
land, the local climate, various local amenities, and changes in
land values and land use to better understand what factors have
been driving overall changes in the value of rural land across
New Zealand. We find that the real value of rural land in all
uses increased substantially over the years being examined. Land
use in rural areas also changed considerably during this period,
but these changes in land use were essentially uncorrelated with
changes in land values. Our regression results indicate that
rural land values increased the most in less populated areas with
good climates and local amenities. Initial land use also plays an
important role in explaining the variation in changes in rural
land values with greater increases in land values found in areas
with more land initially devoted to urban uses and commercial
forestry, and less land initially devoted to horticulture and
lifestyle uses.
Keywords: Land Use, Land Value, New Zealand, Rural Areas
JEL: R14 R22 Q15
Date: 2005-09-12
URL: http://d.repec.org/n?u=RePEc:wpa:wuwpur:0509015&r=agr
5. Driver costs in small firms: empirical analysis for farms
Josep Maria Argil?s and Josep Garcia Bland?n (Universitat
de Barcelona)
The agricultural sector has always been characterized by a
predominance of small firms. International competition and the
consequent need for restraining costs are permanent challenges
for farms. This paper performs an empirical investigation of cost
behavior in agriculture using panel data analysis. Our results
show that transactions caused by complexity influence farm costs
with opposite effects for specific and indirect costs. While
transactions allow economies of scale in specific costs, they
significantly increase indirect costs. However, the main driver
for farm costs is volume. In addition, important differences
exist for small and big farms, since transactional variables
significantly influence the former but not the latter. While
sophisticated management tools, such ABC, could provide only
limited complementary useful information but no essential
allocation bases for farms, they seem inappropriate for small
farms.
Keywords: cost behavior, Activity based costing, farm management
accounting, small firms
JEL: M10 M40 M41
Date: 2005
URL: http://d.repec.org/n?u=RePEc:bar:bedcje:2005140&r=agr
6. Policy to Encourage Carbon Sequestration in Plantation Forests
Suzi Kerr (Motu Economic & Public Policy Research)
Emma Brunton (Motu Economic & Public Policy Research)
Ralph Chapman (Maarama Consulting Ltd)
Carbon sequestration in plantation forests provides the main
means by which New Zealand will meet its international climate
change obligations in the first commitment period of the Kyoto
Protocol (2008?2012). However, without active policy, forests
are unlikely to contribute as much in subsequent commitment
periods. This research paper provides the background for
examining policy measures for encouraging carbon sequestration in
plantation forests in New Zealand. Part I focuses on providing
factual information and positive analysis of: key domestic and
international regulations; information on New Zealand forests,
the forestry industry and forest profitability; discussion of
land-use decision making, including the central question of what
influences conversion of farmland to forestry; and forest carbon
ecology. Part II moves on to normative analysis of policy design.
It discusses how including considerations of the value of carbon
sequestration and storage changes optimal land-use behaviour, and
outlines key issues that need to be addressed when developing a
policy to encourage sequestration and storage in a pragmatic way.
Finally, the paper identifies a number of key areas where we need
more information before we can make well- informed choices about
policy design. Future work will endeavour to identify and
evaluate policies that would effectively encourage sequestration.
Keywords: climate, forest, carbon sequestration, policy, New
Zealand, Kyoto
JEL: Q25 Q28
Date: 2005-09-12
URL: http://d.repec.org/n?u=RePEc:wpa:wuwpot:0509009&r=agr
7. Boards in Agricultural Cooperatives: Competence, Authority,
and Incentives
Hendrikse, G.W.J. (Erasmus Research Institute of Management (
ERIM), RSM Erasmus University)
This article addresses three observations regarding the board of
directors in agricultural cooperatives. First, many scholars and
practitioners worry about the competency of the member dominated
board of directors in agricultural cooperatives. Second, it is
sometimes stated that cooperatives seem to behave like ordinary
enterprises. Finally, it is argued that cooperatives may have
advantages compared to firms with publicly exchanged shares.
These observations are analyzed from various contract theoretic
perspectives.
Keywords: Boards;Cooperatives;Contract theory;
Date: 2005-09-05
URL: http://d.repec.org/n?u=RePEc:dgr:eureri:30007462&r=agr
8. Land reform with human capital: A new analysis using the
theory of economic growth and the theory of the firm
Miguel Rocha de Sousa
In section 1 we refer to a historical synopsis, section 2
classifies the different land reforms using KAWAGOE (1999)
typology. Afterwards we link the concepts of human capital and
land reform within the theory of economic growth. In section 3 a
simplified formal dynamic model of land reform based on the
neoclassical theory of economic growth is introduced, following
SOLOW-SWAN models. In section 4 an endogenous growth model tries
to evaluate land reform in the process of economic growth, based
on the ROMER (1990) model. We further try to relate the notion of
convergence with successful land reform. The main conclusion of
these sections is that with the neoclassical exogenous framework
there is convergence between small landholders and latifundia
holders. This is a successful land reform: there is a finite time
horizon that allows almost landless illiterate to catch up with
rich literate farmers. In the case of endogenous growth there is
never convergence thus the land reform process fails. Another
conclusion in the endogenous framework is that, by reverse
causality, failed land reforms result from perpetuating initial
differential human capital stocks. In section 5, another approach
is to extend ARROW (1962) learn by doing model to evaluate land
reform as a structural break (or cut-off point). A condition for
land reform viability is established, creating a Possibility Set
of Recovery of Human Capital (PSRHC). In section 6 we simplify
the theory of the firm JOVANOVIC?s (1982) model, applying it to
agricultural firms to explain birth, life and death of latifundia.
We establish the date and process of land reform, as a cut-off
process, in which it arises from the failure of firms. Finally,
in section 7, we conclude and present in section 8 the references.
JEL: Q15 O0
Date: 2005
URL: http://d.repec.org/n?u=RePEc:evo:wpecon:13_2005&r=agr
9. The likely regional impacts of an agricultural emissions
policy in New Zealand: Preliminary analysis
Isabelle Sin (Motu Economic & Public Policy Research)
Emma Brunton (Motu Economic & Public Policy Research)
Joanna Hendy (Motu Economic & Public Policy Research)
Suzi Kerr (Motu Economic & Public Policy Research)
Hendy and Kerr (2005b) find that an emissions charge on
agricultural methane and nitrous oxide of $25 per tonne of carbon
dioxide (CO2) equivalent would be likely to reduce New
Zealand?s net land-use related emissions for commitment period
one in the order of 3%, with full accounting. The costs per
farmer and as a percentage of profit would be very high. This
paper considers the regional impacts of such a policy in New
Zealand by allocating the emission charge across space according
to the location of animals. We then combine our emissions charge
information with data on the socio-economic characteristics of
the affected areas. Obviously rural areas are heavily affected.
In many respects, for example median income, ethnic mix, and
percentage of working people with a university degree, the rural
areas most affected have very similar socio-economic
characteristics to other parts of rural New Zealand. Only in two
ways do they appear to differ. Our findings indicate that areas
with high emission costs tend to have high employment rates, but
that they also have a disproportionately high number of
unqualified people.
Keywords: climate change, land use, social impacts, methane,
nitrous oxide, dairy, sheep, beef, distribution of
costs, regional
JEL: Q25 Q28 R14
Date: 2005-09-12
URL: http://d.repec.org/n?u=RePEc:wpa:wuwpot:0509010&r=agr
10. Land Reforms and Economic Development
Gersbach, Hans
Siemers, Lars
We demonstrate that there is a nexus between land transfers and
human capital formation. A sequence of land redistributions
enables the beneficiaries to educate their children and thus to
escape from poverty and to overcome child labour. We find that
open access to land markets should be prohibited for
beneficiaries for some time. Moreover, a temporary state of
inequality among the poor is unavoidable. Finally, a successful
land reform allows for the transition of a society from an
agriculture-based state of poverty to a human capital-based
developed economy.
Keywords: land market access; land reforms; migration; poverty;
transition
JEL: I28 I38 O11 O15 Q15
Date: 2005-08
URL: http://d.repec.org/n?u=RePEc:cpr:ceprdp:5184&r=agr
11. Vertical Product Differentiation, Entry-Deterrence
Strategies, and Entry Qualities
Noh, Yong-Hwan
Moschini, GianCarlo
We analyze the entry of a new product into a vertically
differentiated market in which an entrant and an incumbent
compete in prices. Here the entry-deterrence strategies of the
incumbent firm rely on ?limit qualities.? With a sequential
choice of quality, a quality-dependent marginal production cost,
and a fixed entry cost, we relate the entry-quality decision and
the entry-deterrence strategies to the level of entry cost and
the degree of consumer heterogeneity. Quality-dependent marginal
production costs in the model entail the possibility of inferior-
quality entry as well as an incumbent?s aggressive entry-
deterrence strategies of increasing its quality level toward
potential entry. Welfare evaluation confirms that social welfare
is not necessarily improved when entry is encouraged rather than
deterred.
Keywords: entry deterrence; quality choice; vertical product
differentiation.
JEL: C72 D43 L13
Date: 2005-09-14
URL: http://d.repec.org/n?u=RePEc:isu:genres:12412&r=agr
12. Technology Fees Versus GURTs in the Presence Of Spillovers:
World Welfare Impacts
Lence, Sergio H.
Hayes, Dermot J.
A two-country extension of an ex ante simulation model of
research and development (R&D) in agriculture developed by Lence,
Hayes, McCunn, Smith, and Niebur (2005) is used to analyze issues
regarding intellectual property (IP) protection, spillovers, and
genetic use restriction technologies (GURTs) in the context of
the United States and South America soybean sectors. The model is
used to examine how various IP protection levels in the United
States and South America might have impacted on the level of
innovation, market equilibrium and the welfare of market
participants had they been in place prior to the introduction of
Roundup Ready technologies. The results indicate that technology
fees that are charged in the United States but not in South
America are harmful to US producers. Neither producers in the
United States nor US-based R&D firms have incentives to support
or develop technologies such as Roundup Ready that can be easily
adopted in countries with low IP protection. However, total world
welfare is higher when this type of transferable R&D is conducted.
Equalizing IP protection across countries gives R&D firms a
strong incentive to conduct R&D of relevance to both countries.
Surprisingly, the introduction of a low level of IP protection in
South America does not necessarily improve expected welfare of US
producers. To the extent that GURTs contribute toward IP
protection harmonization, they can be world-welfare enhancing.
However, the positive impact of GURTs could be greatly reduced if
they increase IP protection beyond a certain level. The use of
GURTs to impose IP protection in South America generally
increases the expected welfare of US producers.
Keywords: GURT, Roundup Ready soybeans, spillover, technology
fee, welfare.
Date: 2005-09-22
URL: http://d.repec.org/n?u=RePEc:isu:genres:12417&r=agr
13. Small Fish - Big Issues The Effect of Trade Policy on the
Global Shrimp Market
Debaere, Peter
It is a well-established theoretical result that the trade
policy of a large country can directly affect its own and other
countries' welfare by affecting international goods prices.
However, there exist very few empirical studies that analyze the
effect of trade policy on international prices. With detailed
data on unit values and tariffs, I show how policy actions in
Europe disrupted the global shrimp market in a non-negligible way
and set the stage for the current anti-dumping case in the US.
The loss of Thailand's preferential trade status in Europe and
the international differences in food safety standards during the
antibiotics crisis, have shifted esp. Thai, Vietnamese and
Chinese shrimp exports away from Europe towards the US in the
late 1990s and early 2000s. I document how these shifting markets
have decreased US prices for shrimp significantly compared to
those in Europe.
Keywords: international trade
JEL: F1
Date: 2005-09
URL: http://d.repec.org/n?u=RePEc:cpr:ceprdp:5254&r=agr
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