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Assessing Market Functioning: The Case of the Hungarian Milk Chain AgEcon
Hockmann, Heinrich; Voneki, Eva.
The paper discusses the impact of market power in the Hungarian milk chain. In a first step a vector error correction model is estimates to assess whether a domestic market for raw milk exists. Since the answer was positive we proceed by developing a structural market model of the Hungarian market for raw milk that is able to identify a possible affect of market power on resource allocation. A nonlinear 3SLS approach was applied to estimate the supply and the demand for raw milk. The results provide that despite the high concentration of in dairy processing the indications for market poser are rather limited. The “Bertrand like” equilibrium can be attributed to the low degree of capacity utilization in dairy processing and the marketing alternative of...
Tipo: Conference Paper or Presentation Palavras-chave: Market power; Market integration; Dairy; Hungary.; Livestock Production/Industries; Marketing.
Ano: 2007 URL: http://purl.umn.edu/7805
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Farm Heterogeneity and Efficiency in Polish Agriculture: A Stochastic Frontier Analysis AgEcon
Hockmann, Heinrich; Pieniadz, Agata.
This paper deals with the estimation of a random coefficient model. The virtue of this approach is that it considers firm heterogeneity, which conventional SFA models do not. Applying the model to Polish farms, the results indicate that the conventional random and fixed effect models overestimate the inefficiency score. In addition, the reasons for inefficiency are analysed. It is shown that despite the fragmentation of Polish agriculture, there is no evidence for scale inefficiency. Moreover, inefficiency could partly be attributed to factors that affect management input and requirements on farms.
Tipo: Conference Paper or Presentation Palavras-chave: SFA; Random component model; Poland; Agriculture; Management; Productivity Analysis.
Ano: 2008 URL: http://purl.umn.edu/44278
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Price distortions on the Hungarian raw milk market AgEcon
Voneki, Eva; Hockmann, Heinrich.
The paper attempts to identify the impact of market power in the Hungarian milk chain. Since the conventional conjectural variation approach provides suspicious results the incentives to collude are discussed in an alternative framework. It is argued that the high degree of market transparency, the high frequency of interaction, the low number of large firms which could actually influence market prices, the threat of severe sanctions due to the under-utilization of processing capacities as well as opportunistic behavior make collusive behavior more likely than competitive behavior. The empirical evidence for the period 1998 to 2006 supports this view.
Tipo: Conference Paper or Presentation Palavras-chave: Market power; Dairy processing; Hungary; Industrial Organization; Q11; Q13.
Ano: 2009 URL: http://purl.umn.edu/51673
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Incentive Compatible Pricing and Quality Adoption: The Case of the Polish Dairy Sector AgEcon
Pieniadz, Agata; Hockmann, Heinrich.
We construct a model to identify determinants of the diffusion rate of standards in a food chain. We argue that adoption decisions in the food chain are determined by farmers’ and processors’ economic considerations. Factors such as pricing behavior, compliance costs and market structure, all of which influence the adoption of standards, are identified and discussed in the paper. The findings are used to test an econometric model utilizing data on Polish milk processing firms in the period between 2000 and 2002. The results indicate that input and output prices have a significant influence on the diffusion rate of standards. The dominance of large-scale holdings in the relevant procurement market significantly increases, whereas high compliance costs...
Tipo: Conference Paper or Presentation Palavras-chave: Product quality; Standards; EU enlargement; Industrial organization.; Industrial Organization; Livestock Production/Industries.
Ano: 2007 URL: http://purl.umn.edu/7833
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How Effective is the Invisible Hand? Agricultural and Food Markets in Central and Eastern Europe AgEcon
Hockmann, Heinrich; Brosig, Stephan; Popp, Jozsef; Wilkin, Jerzy; Juchniewicz, Małgorzta; Milczarek, Dominika; Ferto, Imre; Forgacs, Csaba; Juhasz, Aniko; Kurthy, Gyongyi; Hein, Piret; Hobbs, Jill E.; Nuppenau, Ernst-August; Brümmer, Bernhard; Zorya, Sergiy; Bakucs, Lajos Zoltan; Bojnec, Stefan; Svetlov, Nikolai M.; Hurrelmann, Annette; Maack, Kai; Hanf, Jon Henrich; Glauben, Thomas; Herzfeld, Thomas; Wang, Xiaobing; Balint, Borbala; Lerman, Zvi; Shagaida, Natalya; Benner, Eckhard; Wandel, Jurgen; Nivievskyi, Oleg; Kuhn, Arnim.
Since the seminal work of Adam Smith, markets have been considered an efficient tool for co-ordinating the behaviour of economic agents. The basic characteristic of a market economy is that the complex system of interaction among individuals is not centrally coordinated. Under the assumption of profit and utility maximisation (and a whole set of assumptions about the institutional framework), relative prices and their change over time provide the signals that guide, like an invisible hand, the allocation of resources, i.e., the structure of production and the intensity of input use in the various production processes. They do this by co-ordinating the activities of economic agents, i.e., of resource owners, producers, intermediaries, traders, and...
Tipo: Book Palavras-chave: Agribusiness; Community/Rural/Urban Development; Industrial Organization; International Development; Labor and Human Capital; Land Economics/Use; Political Economy.
Ano: 2005 URL: http://purl.umn.edu/93018
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Product Differentiation on the Polish Pig Meat Market AgEcon
Pieniadz, Agata; Hockmann, Heinrich.
This study deals with horizontal product differentiation in the Polish pig meat market. Hypothesis among firms behaviour are derived from an illustrative model and tested in an empirical analysis using data from 1991-1998. The empirical analysis suggest that product differentiation is a relevant phenomenon in the polish pig meat markets. In addition we found that costs and competitions are important factors influencing price variation. However, further influences like price discrimination and vertical product differentiation are also important determinants for product price variations.
Tipo: Conference Paper or Presentation Palavras-chave: Pricing; Market structure; Product quality; Marketing.
Ano: 2002 URL: http://purl.umn.edu/24959
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Black-Box Frontiers and Implications for Development Policy – Theoretical Considerations AgEcon
Sauer, Johannes; Frohberg, Klaus; Hockmann, Heinrich.
The availability of efficiency estimation software – freely distributed via the internet and relatively easy to use – recently inflated the number of corresponding applications. The resulting efficiency estimates are used without a critical assessment with respect to the literature on theoretical consistency, flexibility and the choice of the appropriate functional form. The robustness of policy suggestions based on inferences from efficiency measures nevertheless crucially depends on theoretically well-founded estimates. This paper addresses stochastic efficiency measurement by critically reviewing the theoretical consistency of recently published technical efficiency estimates with respect to economic development. The results confirm the need for a...
Tipo: Working or Discussion Paper Palavras-chave: International Development; Research and Development/Tech Change/Emerging Technologies.
Ano: 2004 URL: http://purl.umn.edu/18772
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The Need for Theoretically Consistent Efficiency Frontiers AgEcon
Sauer, Johannes; Hockmann, Heinrich.
The availability of efficiency estimation software –freely distributed via the internet and relatively easy to use –recently inflated the number of corresponding applications. The resulting efficiency estimates are often used without a critical assessment with respect to the literature on theoretical consistency, flexibility and the choice of the appropriate functional form. The robustness of policy suggestions based on inferences from efficiency measures nevertheless crucially depends on theoretically well-founded estimates. This paper addresses stochastic efficiency measurement by critically reviewing the theoretical consistency of recently published technical efficiency estimates. The results confirm the need for a posteriori checking the regularity of...
Tipo: Conference Paper or Presentation Palavras-chave: Functional form; Stochastic efficiency analysis; Theoretical consistency; Research and Development/Tech Change/Emerging Technologies; C51; D24; Q12.
Ano: 2005 URL: http://purl.umn.edu/24497
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Factors Constraining Efficiency of Russian Corporate Farms: The Case of the Moscow Region AgEcon
Hockmann, Heinrich; Svetlov, Nikolai M..
A time series model is estimated to identify the interrelation among prices on the international and the EU domestic market for butter. Although the findings were not derived from a causal model, the inspection of the data provides economically reasonable and important insights in structural relationship between international and domestic prices. The fact that international prices in the EU and Oceania are causal for each other is an indication of an integrated market. Price transmission is not perfect suggesting that competition between the EU and Oceania exists, however, but not as intense as it could be expected for a homogeneous good like butter. The estimates provide that the EU absorbs price fluctuations form the word market. Interestingly, changes...
Tipo: Conference Paper or Presentation Palavras-chave: Dairy market; International trade; Market integration; Agribusiness; Productivity Analysis; F15; Q13; Q17.
Ano: 2006 URL: http://purl.umn.edu/25439
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MODELING HETEROGENEITY IN PRODUCTION MODELS: EMPIRICAL EVIDENCE FROM INDIVIDUAL FARMING IN POLAND AgEcon
Hockmann, Heinrich; Pieniadz, Agata; Goraj, Lech.
This discussion paper deals with the estimation of a random coefficient model. The virtue of this approach is that it considers firm heterogeneity, which conventional SFA models do not. Applying the model to Polish farms, the results indicate that the conventional random and fixed effect models overestimate the inefficiency score. In addition, the reasons for inefficiency are analyzed. It is shown that despite the fragmentation of Polish agriculture, there is no evidence for scale inefficiency. Moreover, inefficiency could partly be attributed to factors, which affect the management input and requirements on farms.
Tipo: Working or Discussion Paper Palavras-chave: SFA; Random component model; Poland; Management.; Agribusiness; Farm Management; Productivity Analysis; Research Methods/ Statistical Methods; Q12; D24.
Ano: 2007 URL: http://purl.umn.edu/91733
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Structural change in Europe’s rural regions – Farm livelihoods between subsistence orientation, modernisation and non-farm diversification AgEcon
Salasan, Cosmin; Curtiss, Jarmila; Gomez y Paloma, Gomez; Buchenrieder, Gertrud; Fritzsch, Jana; Wegener, Stefan; Glauben, Thomas; Hockmann, Heinrich; Moller, Lioudmila; Pieniadz, Agata; Renner, Swetlana; Davidova, Sophia; Fredriksson, Lena; Petrovici, Dan Alex; Mishev, Mishev; Hubbard, Carmen; Gorton, Matthew; Wolek, Tomasz.
Edited volume of the contributions to the mini-symposium of the same title at the IAAE conference 2009.
Tipo: Book Palavras-chave: EU; Enlarged EU; Structural change; Farm livelihoods; Modernization; Rural development; Success stories; Agricultural and Food Policy; Community/Rural/Urban Development; International Development.
Ano: 2009 URL: http://purl.umn.edu/53334
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On Flexibility in the Polish Farming Sector AgEcon
Renner, Swetlana; Hockmann, Heinrich; Pieniadz, Agata; Glauben, Thomas.
This paper investigates the flexibility of the Polish farming sector during a transition period. Flexibility is considered to be a farm’s ability to change output by sustaining average costs. We argue that flexibility is a crucial factor in farmers’ competitive advantage, especially under dynamically changing environmental conditions. We propose a flexibility measure that accounts for both input and output flexibility. This measure is used to empirically investigate the magnitude and sources of flexibility in Polish family farming. We also identify the main factors that explain the proposed flexibility indices. The empirical findings reveal that Polish farms use different technologies regarding their input and output flexibility. While small and...
Tipo: Conference Paper or Presentation Palavras-chave: Flexibility; Family Farm; Poland; Consumer/Household Economics; Production Economics; D24; Q12.
Ano: 2009 URL: http://purl.umn.edu/52841
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The Choice of Technology in Russian Agriculture: An Application of the Induced Innovation Hypothesis AgEcon
Hockmann, Heinrich; Kopsidis, Michael.
Even after more then ten years after the beginning of the transition process, Russian agriculture shows only limited sign of a recovery. Production has not reached the level of the pre-transition period and investment is still on a very low level. In this paper we use the "Theory of Induced Innovation" in order to access the development of production structures in Russia and to identify the major obstacles for restructuring. We argue that due to multiple market failure (capital, labour) and inappropriate institutional arrangements inherited from Soviet times hinder the development of Russian agriculture. Both reasons causes that agricultural enterprises have difficulties with regard to an adjustment of factor input and production corresponding to the real...
Tipo: Conference Paper or Presentation Palavras-chave: Technical change; Efficiency; Russia; Agriculture; Induced innovation theory; Agribusiness; Q11; Q16.
Ano: 2005 URL: http://purl.umn.edu/24652
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Production Risk and Technical Inefficiency in Russian Agriculture AgEcon
Bokusheva, Raushan; Hockmann, Heinrich.
This paper aims to contribute to a better understanding of possible causes of considerable production variability that characterised Russian agriculture during the last decade. The study investigates production risk and technical inefficiency as two sources that influence production variability. Using panel data from 1996 to 2001, an empirical analysis of 443 large agricultural enterprises from three regions in central, southern and Volga Russia is conducted. A production function specification accounting for the effect of inputs on both risk and technical inefficiency is found to describe production technologies of Russian farms more appropriately than the traditional stochastic frontier formulation.
Tipo: Conference Paper or Presentation Palavras-chave: Production risk; Technical efficiency; Panel data; Russian agriculture; Production Economics; D81; Q12.
Ano: 2005 URL: http://purl.umn.edu/24610
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ZUR WETTBEWERBSFAHIGKEIT DER WEISSSRUSSISCHEN MILCHWIRTSCHAFT: EINE ANWENDUNG DES PORTERSCHEN DIAMANTEN AgEcon
Hockmann, Heinrich; Ramanovich, Mikhail.
This Discussion Paper provides an analysis of competitiveness of the Belarus’ dairy sector based on international trade indicators. The ex-post analysis is extended by an ex-ante analysis in order to gain detailed insights into the sector’s future opportunities and challenges. Systematic access is established through relevant determinants with respect to Porter’s diamond. Ex-post analysis results indicate a strong position of Belarus in the international dairy trade although limited to homogenous products like milk powder and evaporated milk. Competitive disadvantages were revealed for highly processed dairy products. The ex-ante analysis through Porter’s diamond model reveals the necessary prerequisites for potentially successful future developments in...
Tipo: Working or Discussion Paper Palavras-chave: Belarus; Foreign trade; Porter; Competitiveness; Milk; Weissrussland; Aussenhandel; Porter; Wettbewerbsfahigkeit; Milch; Agribusiness; Industrial Organization; Institutional and Behavioral Economics; International Development; International Relations/Trade; Productivity Analysis; P23; P45; Q17.
Ano: 2010 URL: http://purl.umn.edu/91962
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Agricultural economics and transition: What was expected, what we observed, the lessons learned Proceedings (Volume I / II) AgEcon
Csaki, Csaba; Forgacs, Csaba; Koester, Ulrich; Liefert, William M.; Banse, Martin; Gay, Stephan Hubertus; McDonald, Scott; M'Barek, Robert; Swinnen, Johan F.M.; Kim, Hanho; An, Donghwan; Hubbard, Lionel J.; Rieger, Laszlo; Szoke, Gyula; Cristoiu, Adriana; Udovc, Andrej; Kagan, Adam; Sassi, Maria; Takacs, Istvan; Takacs, Emese; Cimpoies, Dragos; Ertsey, Imre; Kovacs, Sandor; Przygodzka, Renata; Dziemianowicz, Ryta Iwona; Magda, Robert; Borodina, Elena; Borodina, Alexandra; Gavrilescu, Dinu; Pecze, Denes; Balogh, Peter; Cechura, Lukas; Sayin, Cengiz; Cengiz, M. Nisa; Osanami, Fumio; Szabo, Gabor G.; Karaman, Suleyman; Szekely, Geza; Szczepaniak, Iwona; Szczegolska, Monika; Serova, Eugenia; Pieniadz, Agata; Barmon, Basanta Kumar; Kondo, Takumi; Becvarova, Vera; Levkovych, Inna; Hockmann, Heinrich; Bezlepkina, Irina V.; Kupavych, Alexander; Konig, Gabor; Halmai, Peter; Vasary, Viktoria; Vincze, Maria-Magdolna; Lerman, Zvi; Kolcsey, Andrea; Bokusheva, Raushan; Turtoi, Crina Sinziana; Toma, Camelia; Gavrilescu, Camelia; Davidova, Sophia; Blaas, Gejza; Antonova, Maria; Zeller, Manfred; Deininger, Klaus W.; Savastano, Sara; Carletto, Calogero; Caceres-Clavero, Francisco; Lucena-Cobos, Blanca; Latruffe, Laure; Takacs-Gyorgy, Katalin; Bandlerova, Anna; Sadowski, Adam; Gomez y Paloma, Sergio; Luca, Lucian; Cristoiu, Adriana; Ciaian, Pavel; Pokrivcak, Jan; Drabik, Dusan; Voneki, Eva; Tonini, Axel; Burger, Anna; Szep, Katalin; Majewski, Edward; Raggi, Meri; Viaggi, Davide; Maccarini, Elisa Ricci; Monasterolo, Irene; Vandeplas, Anneleen; Jongeneel, Roelof A.; Novak, Petr; Brasili, Cristina; Meyer, William H.; Kuhne, Bianka; Fanfani, Roberto; Gellynck, Xavier; Molnar, Adrienn; Gagalyuk, Taras; Traikova, Diana; Mollers, Judith; Cochrane, Nancy J.; Kazlauskiene, Natalija; Fekete-Farkas, Maria; Molnar, Jozsef; Szucs, Istvan; Popp, Jozsef; Udovecz, Gabor; Florkowski, Wojciech J.; Fritzsch, Jana; Buchenrieder, Gertrud; Kasarjyan, Milada; Podruzsik, Szilard; Korff, Rudiger; Wilkin, Jerzy; van Leeuwen, Myrna; Bartova, Lubica; Erjavec, Emil; Katona-Kovacs, Judit; Baranyai, Zsolt; Hubbard, Carmen.
Over fifteen years have elapsed since the transition from the centrally planned economic system started in the early 1990’s. During this time agricultural and rural areas of Central and Eastern Europe have undergone profound structural changes with wide variations in the degree of transformation and in the rate of success in creating a competitive market and private ownership based food and agricultural system. By becoming member of the European Union the "transition" in its traditional interpretation has been concluded in ten of the Central East European countries. The transition to market based agriculture, however, is far from completion in Southern and Eastern Europe and especially in the CIS countries. International Association of Agricultural...
Tipo: Conference Paper or Presentation Palavras-chave: Agribusiness; Agricultural Finance; Farm Management; Financial Economics; Industrial Organization; International Development; International Relations/Trade; Land Economics/Use; Production Economics.
Ano: 2008 URL: http://purl.umn.edu/92319
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Explaining differences in farms efficiencies in Polish agriculture AgEcon
Hockmann, Heinrich; Pieniadz, Agata.
This paper deals with the estimation of a random coefficient model. The virtue of this approach is that it considers firm heterogeneity, which conventional SFA models do not. When the model is applied to Polish farms, the results indicate that the conventional random and fixed effect models overestimate the potential production increases due to the reduction of inefficiency. Additionally, our findings provide evidence of the importance of input quality for efficiency analysis. Moreover, the results indicate that farm heterogeneity is a significant determinant of agricultural production. We found that differences in productivity between the farms can partly be attributed to farm size, degree of integration in the product markets and incurred transaction...
Tipo: Conference Paper or Presentation Palavras-chave: SFA; Random component model; Poland; Agriculture; Firm heterogeneity; Farm Management; Labor and Human Capital; Production Economics; Productivity Analysis; Research Methods/ Statistical Methods; Q12; C23; D24; L23.
Ano: 2009 URL: http://purl.umn.edu/51051
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Measuring flexibility of multi-output firms: a primal and a dual measure AgEcon
Renner, Swetlana; Hockmann, Heinrich; Glauben, Thomas.
Tipo: Conference Paper or Presentation Palavras-chave: Industrial Organization.
Ano: 2011 URL: http://purl.umn.edu/114797
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Business Relationships and B2B Communication in Selected European Agri-food Chains – First Empirical Evidence AgEcon
Fischer, Christian; Hartmann, Monika; Bavorova, Miroslava; Hockmann, Heinrich; Suvanto, Hannele; Viitaharju, Leena; Leat, Philip M.K.; Revoredo-Giha, Cesar; Henchion, Maeve M.; McGee, Claire; Dybowski, Grzegorz; Kobuszynska, Mira.
The roles of business relationships and B2B communication in selected European agri-food chains are analyzed. Using survey data from 1,026 farmers, food processors and retailers in two commodity sectors (meat and cereals) and five different EU countries (Germany, United Kingdom, Ireland, Finland, Poland), we test the empirical relevance of several theory-based determinants of relationship goodness. This is undertaken for the overall dataset and separately for different supply chain stages (farmer-processor versus the processor-retailer relationship) and for the individual countries. The estimation results, derived from structural equation modeling, suggest that the most important contributor to good business relationships is effective communication, with...
Tipo: Journal Article Palavras-chave: Business relationships; B2B communication; Agri-food; Value/supply chain; Structural equation modeling; Agribusiness; Agricultural and Food Policy; Q10; Q13; Q16; Q18.
Ano: 2008 URL: http://purl.umn.edu/53645
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RISK, TECHNICAL EFFICIENCY AND MARKET TRANSACTION COSTS IN DIFFERENT ORGANISATIONAL FORMS: EVIDENCE FROM THE OBLAST TATARSTAN AgEcon
Hockmann, Heinrich; Gataulina, Ekaterina; Hahlbrock, Konstantin.
The paper investigates the significance of external and internal transaction costs and risk in agriculture in the Tatarstan Republic. The analysis is conducted for independent farms and farms which are members of agroholdings. The result indicates that external transaction costs are more marked in independent farms than in agroholding members. However, average prices do not differ among the organisational forms. With regard to internal transaction costs (or inefficiency) the result is the opposite. Inefficiency in agroholding members is considerably higher than in independent farms. However, the estimation suggests that this result is due to more intense risk management in agroholding members. Thus, members of a business group have a more intense use of...
Tipo: Conference Paper or Presentation Palavras-chave: Risk production function; Internal and external transaction costs; Agribusiness; Agricultural and Food Policy; Agricultural Finance; Industrial Organization; Institutional and Behavioral Economics; Q110; D220; P230.
Ano: 2011 URL: http://purl.umn.edu/114510
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