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Estimating the economic implications for grazing properties in the Mackay Whitsunday catchments of practice changes to more sustainable landscapes AgEcon
East, Miriam.
In the Mackay Whitsunday region, the dominant grazing based operations are small intensive systems that heavily utilise soil, nutrient and chemical management practices. To improve water quality entering the Great Barrier Reef, graziers are being encouraged to adopt improved management practices. However, while there is good understanding of the management changes required to reach improved practice classification levels, there is poor understanding of the likely economic implications for a grazier seeking to move from a lower level classification to the higher level classifications. This paper provides analysis of the costs and benefits associated with adoption of intensive grazing best management practices to determine the effect on the profitability and...
Tipo: Conference Paper or Presentation Palavras-chave: Grazing; Management practices; Incentives; Mackay Whitsunday; Farm Management.
Ano: 2010 URL: http://purl.umn.edu/59070
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Rational Inefficiencies AgEcon
Bogetoft, Peter; Hougaard, Jens Leth.
In this paper, we suggest that inefficiency may be an indirect, on-the-job compensation to agents in an organization. We show how to use actual production data to reveal the trade-offs between different inefficiencies (slacks). Moreover, we discuss how to use this to improve productivity analysis as well as decision making and incentive provisions in organizations.
Tipo: Working or Discussion Paper Palavras-chave: Efficiency; Preferences; Incentives; Bargaining; Planning; Productivity Analysis.
Ano: 2001 URL: http://purl.umn.edu/24191
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DEA based yardstick competition in natural resource management AgEcon
Bogetoft, Peter; Nielsen, Kurt.
In this paper, we discuss the pros and cons of using Data Envelopment Analysis (DEA) to evaluate and enhance the efficiency of natural resource management. The need for a multidimensional production frontier approach is sketched, along with examples from other regulated multi-output industries, Also, reviews of the basic properties of DEA and DEA based yardstick competition are provided. Finally, we discuss the use of DEA based yardstick to evaluate bids in multi-dimensional procurement auctions.
Tipo: Conference Paper or Presentation Palavras-chave: Regulation; Incentives; Performance evaluation; Yardstick competition; Data envelopment analysis (DEA); Research Methods/ Statistical Methods; Resource /Energy Economics and Policy.
Ano: 2003 URL: http://purl.umn.edu/57928
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COMPARATIVE ANALYSIS OF COST-EFFECTIVENESS OF CO-REGULATORY APPROACHES TO FOOD SAFETY CONTROLS AgEcon
Hussein, Mohamud; Fearne, Andrew; Martinez, Marian Garcia; Di Falco, Salvatore.
Food safety controls are currently enforced in the UK by a variety of regulatory approaches that considerably differ in their efficiency and effectiveness in achieving social goals of safe food supply and improved consumer confidence. Aim of this study is to establish whether a coregulatory enforcement of these controls is more cost-effective than the traditional command-and- control enforcement modes. First of its kind, the study reviewed a vast theoretical literature on economics of food safety and incentives to develop a conceptual framework and appropriate methodology for comparative cost-effectiveness analysis of co-regulatory approaches to food hygiene controls in the UK meat industry. A panel data on costs and compliance of 710 meat firms operating...
Tipo: Conference Paper or Presentation Palavras-chave: Cost-effectiveness; Co-regulation; Food safety; Incentives; Panel data modelling; Food Consumption/Nutrition/Food Safety; C23; K32; Q18; Q28.
Ano: 2010 URL: http://purl.umn.edu/91725
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Professionalism, Latent Professionalism and Organizational Demands for Health Care Quality in a Developing Country AgEcon
Leonard, Kenneth L.; Masatu, Melkiory C..
Medicine is a professional pursuit, and even in developing countries professionalism should lead at least some practitioners to care for their patients despite the absence of direct incentives to do so. Even if practitioners do not behave as professionals, what is the extent of latent professionalism, in which socialization in the profession conditions health workers to respond to a demand for professionalism even if they do not normally act as professionals? How many health care workers in developing countries act as professionals all the time and what will happen if health services turn toward remuneration schemes in which health workers are paid by the output or outcome? We examine the behavior of 80 practitioners from Arusha region of Tanzania for...
Tipo: Working or Discussion Paper Palavras-chave: Incentives; Quality; Health care; Professionalism; Tanzania; Health Economics and Policy; I1; O1; O2.
Ano: 2008 URL: http://purl.umn.edu/42883
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Research: Are We Valuing the Right Stuff? AgEcon
Brorsen, B. Wade.
The incentives researchers face depend directly upon what we as a profession value. The impacts of research can be either disciplinary by adding to economic knowledge or real world by being useful to economic agents. Various measures of research impact such as publications, citations, and external funding are discussed, and the strengths and weaknesses of each measure are evaluated. Because of the difficulty of accurately measuring research impact, we must depend on internal incentives to motivate researchers to select topics with the most potential impact.
Tipo: Journal Article Palavras-chave: Incentives; Methodology; Research impact; Research and Development/Tech Change/Emerging Technologies.
Ano: 2009 URL: http://purl.umn.edu/50079
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Czech Agricultural Associations and the Impact of Membership on Farm Efficiency AgEcon
Bavorova, Miroslava; Curtiss, Jarmila; Jelinek, Ladislav.
The study investigates the efficiency effect of affiliation with the two strongest associations in Czech agriculture. These represent large-scale enterprises and individual farmers, respectively. The efficiency analysis is supplemented by analyses of incentives for associations' membership and farm characteristics decisive for membership choice. The results imply that political lobbying is the main entry incentive. Commercially-oriented individual farms which employ external workers are more likely to choose association membership, as are agricultural enterprises that specialize in livestock production or preserve a high share of employee ownership. We find that association membership has a significant positive impact on farms' performance, especially...
Tipo: Conference Paper or Presentation Palavras-chave: Associations; Agricultural enterprises; Czech agriculture; Incentives; Individual farms; Technical efficiency; Stochastic frontier analysis; Transition; Farm Management.
Ano: 2005 URL: http://purl.umn.edu/24430
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Conservation impediments and incentives – progressing the understanding of linkages between the adoption of conservation practices and the motivational orientation of graziers in the tropical savannas AgEcon
Gregg, Daniel; Greiner, Romy.
The adoption of conservation practices is a complex matter – rural landholders consider a wide variety of factors and characteristics when deciding whether to adopt a conservation practice. To confound the issue, recent research has suggested that the goals of landholders affect the adoption of conservation practices by creating a subjective consideration of the relative importance of impediments and effectiveness of incentives in the adoption decision. In this research we describe an empirical link between graziers’ goals and their perceptions of the relative importance of impediments and the effectiveness of incentives in the adoption of conservation practices. The research was carried out in the tropical savannas region of Australia where pastoral...
Tipo: Conference Paper or Presentation Palavras-chave: Graziers; Goals; Conservation; Tropical savannas; Impediments; Incentives; Crop Production/Industries.
Ano: 2009 URL: http://purl.umn.edu/49923
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Mixed Tournaments, Common Shocks, and Disincentives: An Experimental Study AgEcon
Wu, Steven Y.; Roe, Brian E.; Sporleder, Thomas L..
Two well-known hypotheses from the literature on tournaments are that (1) tournaments can filter out common shocks thereby reducing agents’ risk exposure; and (2) disincentive effects can arise when a tournament scheme is administered on a group of mixed ability agents. While handicapping and/or the creation of homogeneous groups have been suggested as mechanisms for mitigating disincentive effects, it is often impractical to use handicapping schemes and nearly impossible to create a completely homogeneous labor force. Hence, contract administrators who intend to use tournaments to elicit effort must be able to assess the positive effects of tournaments (eliminate common shocks) against the negative effects (disincentive effects). Using economic...
Tipo: Conference Paper or Presentation Palavras-chave: Mixed tournaments; Incentives; Relative performance contracts; Experimental economics; Research Methods/ Statistical Methods; C91 D01; D81; D82; D86.
Ano: 2007 URL: http://purl.umn.edu/9703
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Multilateral Trade Liberalisation and FDI: An Analytical Framework for the Implications for Trading Blocs AgEcon
Ghazalian, Pascal L.; Cardwell, Ryan T..
The proliferation of regional integration agreements (RIAs) over the past several years has led to significant changes in the global configuration of trade and investment activity. Multinational enterprises now face the prospect of multilateral trade liberalisation that could significantly affect the foreign direct investment (FDI) incentive structures that were established within the range of current RIAs. RIAs that provide preferential market access to member countries modify firms’ incentives to undertake FDI activities and can lead to various permutations of trade and investment creation and diversion. This article provides an analytical framework for understanding the implications of multilateral trade liberalisation for the incentive structures of...
Tipo: Journal Article Palavras-chave: Foreign direct investment; Incentives; Multilateral trade liberalisation; Regional integration agreements; Demand and Price Analysis; Financial Economics; International Relations/Trade; Political Economy.
Ano: 2010 URL: http://purl.umn.edu/90590
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An Information Economic Rationale for Cooperatives AgEcon
Boetoft, Peter.
We consider how to organize the processing and marketing of an agricultural product when farming costs are known only by the individual farmers. We show that when marginal costs are un-correlated, the market for …nal goods is competitive, and the market for processing is non-competitive, the socially optimal production levels are sustained by a cooperative and a cooperative only. We show also that the cooperative form is particularly useful when the cost uncertainty is large and the net average revenue product is small.
Tipo: Conference Paper or Presentation Palavras-chave: Economics of cooperatives; Asymmetric information; Incentives; Rationing; Agribusiness.
Ano: 2005 URL: http://purl.umn.edu/24476
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PRIVATE R&D INVESTMENTS IN AGRICULTURE: THE ROLE OF INCENTIVES AND INSTITUTIONS AgEcon
Alfranca, Oscar; Huffman, Wallace E..
This paper presents econometric evidence of the effects of economic incentives and institutions on national aggregate private agricultural R&D investments. A model is proposed and fitted to annual data for seven European Union countries, 1984-1995. We find strong impacts of both incentives and institutions on private agricultural R&D investment, and including institutional factors strengthens the story and in some cases changes greatly the results. In particular, we reject the hypothesis that quality of property rights does not matter. We find that stronger contract enforcement, more efficient public bureaucracies, and stronger patent rights lead to larger aggregate private agricultural R&D investment, other things equal. Furthermore, we...
Tipo: Working or Discussion Paper Palavras-chave: Private R&D; Incentives; Institutions; Property rights; European Union; Agriculture; Spillovers; Research and Development/Tech Change/Emerging Technologies.
Ano: 1999 URL: http://purl.umn.edu/18246
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SUSTAINABLE BIOFUELS IN HUNGARY AND EUROPE – SELF-DEFEATING INCENTIVES? AgEcon
Szendro, Gabor.
Substituting fossil fuels has been a prominent issue in the EU in recent years. Energy security, agricultural and environmental considerations have all played a part in the development of alternative fuels and in the creation of incentives promoting their use. The system, like big systems in general, cannot react to new developments quickly and it seems there are elements that we should seriously consider removing or replacing to avoid adverse effects. This paper will attempt to summarize the current issues and propose possible solutions in the form of seven recommendations to make the European incentive system more effective in the interest of sustainable rural development, an area that is of prime importance for Hungary....
Tipo: Journal Article Palavras-chave: Incentives; Sustainable biofuel production; Transport; Rural development; Externalities; Támogatások; Fenntartható bioüzemanyag-termelés; Kereskedelem; Vidékfejlesztés; Externáliák; Agricultural and Food Policy; Land Economics/Use.
Ano: 2010 URL: http://purl.umn.edu/99207
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Collaterals, Bank Monitoring and Performance: the Case of Newly Established Wine Farmers AgEcon
Cadot, Julien.
This research aims at identifying the incentives associated to collaterals in an asymmetric information context and when the bank is the main financial partner of the entrepreneurs, which is typically the case for most farms and especially in the wine sector. In one hand, collaterals may reduce the risk of overinvestment by entrepreneurs and so reduce the risk of repayment default. In the other hand, to contract collaterals may lead the bank to reduce the monitoring effort. In this paper we test these two hypotheses in taking into account the fact that entrepreneurs can benefit from a banking relationship or not. Our results confirm that collaterals’ incentives depend on the bank monitoring. Moreover, this emphasizes the uniqueness of land mortgages....
Tipo: Conference Paper or Presentation Palavras-chave: Collaterals; Incentives; Bank monitoring; Agricultural Finance; G32; G33; G35.
Ano: 2011 URL: http://purl.umn.edu/103414
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Balancing Grower Protection Against Agency Concerns: An Economic Analysis of Contract Termination Damages AgEcon
Lee, Myoungki; Wu, Steven Y.; Fan, Maoyong.
This study examines legislation that would grant growers termination damages if their contracts are terminated. Our model suggests that, with no contracting frictions, damages would not reduce ex ante efficiency as processors can contract around damages through contract restructuring. Growers would earn less under continuation but would be protected if terminated, although overall expected profits would be unaffected. However, when contracting friction exist, then efficiency losses can occur as processors would be constrained in restructuring contractual incentives to deal with moral hazard. Growers' expected profits would increase while processors' profit would decrease.
Tipo: Journal Article Palavras-chave: Contract law; Contract regulation; Damages; Incentives; Principal-agent; Farm Management.
Ano: 2008 URL: http://purl.umn.edu/42461
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The Advantage of Cooperatives under Asymmetric Cost Information AgEcon
Bogetoft, Peter; Jensen, Peter Max Friis; Olsen, Rene H..
We consider how to organize the processing and marketing of an agricultural product when farming costs are known only by the individual farmers. We show that when marginal costs are un-correlated and the market for final goods is competitive, the socially optimal production levels may be sustained by a cooperative and a cooperative only. We show also that the cooperative form is particularly useful when the uncertainty is large and the net revenue product is small.
Tipo: Working or Discussion Paper Palavras-chave: Economics of cooperatives; Asymmetric information; Incentives; Agribusiness.
Ano: 1999 URL: http://purl.umn.edu/24176
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Ecosystem Services Beyond Valuation, Regulation and Philanthropy: Integrating Consumer Values into the Economy AgEcon
Swallow, Stephen K.; Smith, Elizabeth C.; Uchida, Emi; Anderson, Christopher M..
Tipo: Journal Article Palavras-chave: Environmental Markets; Ecosystem Service Markets; Payment For Ecosystem Services; Incentives; Nature's Services; Resource /Energy Economics and Policy; Q20; Q57; C93; H41.
Ano: 2010 URL: http://purl.umn.edu/94656
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Towards an Analytical Framework for Assessing Property Rights to Natural Resources: A Case Study in the Communal Areas of Zimbabwe AgEcon
Kundhlande, Godfrey; Luckert, Martin K..
A taxonomy for describing property rights to natural resources is described and applied in a Zimbabwean case study. The taxonomy allows: tenures to be systematically compared and contrasted; incentives for natural resource management to be identified; and the evolution of tenure to natural resources to be assessed. In the case study, we find: key differences between tenure types, all termed "communal"; a wide range of tenure arrangements that transcend concepts of "tree" and "land tenure"; information suggesting that the promotion of tree planting may work on some tenure types, but is likely to fail on others; and that the evolution of indigenous tenure to natural resources seems to have been somewhat immune from external changes in institutional systems....
Tipo: Working or Discussion Paper Palavras-chave: Incentives; Natural resources; Property rights framework/taxonomy; Tenure; Zimbabwe; Resource /Energy Economics and Policy.
Ano: 1998 URL: http://purl.umn.edu/24115
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Contract Production of Green Peas AgEcon
Olesen, Henrik Ballebye.
This paper analyzes a contract between farmers and a large company in the Danish food industry, Danisco Foods. Production of green peas requires a very accurate coordination, which is obtained through centralized decision-making. The contract is based on a tournament system providing risk sharing between the farmers. General problems from the contract theory such as hold up, moral hazard, risk sharing and screening are analyzed. The paper illustrates the tradeoffs between these problems in design of contracts. By negotiating the contract through a pea-growers association, the farmers gain some bargaining power. Thus the farmers can ensure that Danisco Foods uses only one contract for all farmers. This paper analyzes the consequences of the farmers'...
Tipo: Working or Discussion Paper Palavras-chave: Contract theory; Coordination; Incentives; Risk sharing; Agribusiness.
Ano: 2001 URL: http://purl.umn.edu/24200
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Using Both Sociological and Economic Incentives to Reduce Moral Hazard AgEcon
Richter, Francisca G.-C.; Diaz, Edgar F. Pebe; Brorsen, B. Wade; Currier, Kevin.
Economists tend to focus on monetary incentives. In the model developed here, both sociological and economic incentives are used to diminish the apparent moral hazard problem existing in commodity grading. Training that promotes graders' response to sociological incentives is shown to increase expected benefits. The model suggests this training be increased up to the point where the marginal benefit due to training equals its marginal cost. It may be more economical to influence the grader's behavior by creating cognitive dissonance through training and rules rather than by using economic incentives alone.
Tipo: Journal Article Palavras-chave: Grading; Incentives; Moral hazard; Norms; Social sanctions; Institutional and Behavioral Economics.
Ano: 2003 URL: http://purl.umn.edu/31096
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