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A NOTE ON THE EFFICIENCY OF INCOME REDISTRIBUTION WITH SIMPLE AND COMBINED POLICIES 31
Bullock, David S.; Salhofer, Klaus.
Recent studies have investigated the efficiencies of policies that use several policy instruments simultaneously (for example, a policy that uses a production subsidy combined with a production quota). Several studies of very specific cases find that optimal combination of two policy instruments is more efficient than optimal independent use of either. In this note we demonstrate using set theory and maximization theory, that all such specific results are examples of a more general result, which is that by combining m instruments efficiently, a government can always be at least as efficient as when using a subset of those m instruments. This result holds for any of the several definitions of "efficiency" in the literature.
Tipo: Journal Article Palavras-chave: Agricultural and Food Policy.
Ano: 1998 URL: http://purl.umn.edu/31524
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Comparing productivity growth in conventional and grassland dairy farms 31
Kellermann, Magnus; Salhofer, Klaus.
This paper analyzes technical efficiency and productivity growth of dairy farms in southern Germany. We compare the performance of farms operating on permanent grassland and conventional farms using fodder crops from arable land. Using a latent class stochastic frontier model, intensive and extensive production systems are identified for both types of farms. We estimate stochastic output distance functions to represent the production technology. TFP change is calculated and decomposed using a generalized Malmquist productivity index. Our results show that grassland farms can in general keep up with conventional farms. The productivity on intensive (extensive) grassland dairy farms grew by 1.15% (0.93%) per year, compared to 1.19% (intensive) and 1.0%...
Tipo: Conference Paper or Presentation Palavras-chave: Productivity; Dairy farming; Stochastic frontier analysis; Livestock Production/Industries; Productivity Analysis.
Ano: 2011 URL: http://purl.umn.edu/114763
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Cooperative vs. Non-Cooperative Spatial Competition for Milk in the Presence of Farm Marketing Cooperatives 31
Graubner, Marten; Koller, Ines; Salhofer, Klaus; Balmann, Alfons.
Although important, the spatial dimension is often neglected in studies of market power and competition in agricultural markets. This paper investigates spatial competition for raw milk between dairies under the presence of marketing cooperatives. Since observed in reality, our model is based on uniform delivered pricing and overlapping market areas. We compare spatial cooperative price matching with non-cooperative Hotelling-Smithies conduct. Utilizing a vector error correction model we show that the observed low price transmission in Germany is in line with cooperative behaviour. This seems rational since it increases processors profits. The abolition of the quota system may increase price transmission.
Tipo: Conference Paper or Presentation Palavras-chave: Spatial competition; Uniform delivered pricing; Price transmission; Horizontal cooperation; VECM; Marketing.
Ano: 2009 URL: http://purl.umn.edu/58021
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Enlargement of Trade Blocs: National Welfare Effects If Trade Is Liberalized 31
Glebe, Thilo W.; Salhofer, Klaus.
Small countries may benefit from the formation of a trade bloc, since their combined market power will enable them to manipulate the terms of trade. The question of interest is whether countries will benefit from the enlargement of a trading bloc, if trade liberalization induces countries to substitute domestic support measures for conventional border protection. The paper deals with this question by analyzing the conditions for positive welfare effects resulting from the enlargement of a trade bloc. Based on a partial equilibrium trade model, we consider a game in production taxes/subsidies between two trade blocs. The tax/subsidy instrument may capture the production effect which can be induced by a combination of environmental, health or safety rules....
Tipo: Conference Paper or Presentation Palavras-chave: Trade bloc; Trade liberalization; Game theory; European Union; International Relations/Trade; D6; F11; Q17; C7.
Ano: 2006 URL: http://purl.umn.edu/25529
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IMPACTS OF 2003 CAP REFORM ON LAND PRICES: FROM THEORY TO EMPIRICAL RESULTS 31
Kilian, Stefan; Anton, Jesus; Roder, Norbert; Salhofer, Klaus.
Based on a graphical model we analyse the impacts of the Fischler Reform on land prices and the capitalization of single farm payments (sfp) into land values. The model shows that if there are more sfp than eligible land, the capitalization ratio will not decline but rather increase due to the inclusion of animal premiums in the sfp. We can confirm our theoretical results for cross-section data on land rental prices in Bavaria in 2005. Empirical results indicate that sfp of the Fischler reform are more capitalized into rental prices than the coupled direct payments of the time prior to the reform.
Tipo: Conference Paper or Presentation Palavras-chave: Land rent; Capitalisation of payments; CAP Fischler Reform; Agricultural and Food Policy; Public Economics; Q18; Q15; H22.
Ano: 2008 URL: http://purl.umn.edu/44808
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LEAST COST EFFICIENCY OF AGRICULTURAL PROGRAMS: AN EMPIRICAL INVESTIGATION 31
Salhofer, Klaus; Schneider, Friedrich; Streicher, Gerhard.
The study evaluates the efficiency of government intervention using a vertical structured model including imperfectly competitive agricultural input markets, the bread grains market, and the imperfectly competitive food industry. The actually observed policy is compared to a hypothetical optimal policy of the same policy instruments to test for policy efficiency.
Tipo: Conference Paper or Presentation Palavras-chave: Agricultural and Food Policy; Research Methods/ Statistical Methods.
Ano: 1999 URL: http://purl.umn.edu/21565
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NATIONAL DIFFERENCES IN THE UPTAKE OF AGRI-ENVIRONMENTAL SCHEMES: AN EXPLANATION 31
Salhofer, Klaus; Glebe, Thilo W..
The number of agri-environmental programs, as well as the share of agricultural land covered under these programs, varies significantly between EU member states. We analyze national differences in the uptake of agri-environmental programs by developing a model of countries'’ political objective function. Based on this model we identify six factors which may explain the extent to which agri-environmental policies are implemented: environmental benefits, opportunity costs of participation, financial budget pressure, the share of program expenditures financed by the EU, contribution to the EU budget, and political weight attributed to farmers'’ income. The conceptual approach is then supplemented by an empirical analysis.
Tipo: Conference Paper or Presentation Palavras-chave: Environmental Economics and Policy.
Ano: 2004 URL: http://purl.umn.edu/20191
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National Differences in the Uptake of EU Agri-environmental Schemes: An Explanation 31
Salhofer, Klaus; Glebe, Thilo W..
The number of agri-environmental programs launched under EU Regulation 1257/99, as well as the share of agricultural land covered under these programs, varies significantly between EU member states. National differences in the uptake of agri-environmental schemes would be economically efficient if they accounted for differences in countries' natural capacity to assimilate pollution and reflected the social value attributed to environmental quality. However, political decisions are unlikely to be influenced only by efficiency consideration. This paper assesses the distributional, budgetary and welfare effects of agri-environmental programs and analyses how this may explain the pattern of agri-environmental policy in Europe. The study is based on an...
Tipo: Conference Paper or Presentation Palavras-chave: Environmental Economics and Policy.
Ano: 2006 URL: http://purl.umn.edu/25565
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Output Effects of Agri-environmental Programs of the EU 31
Salhofer, Klaus; Streicher, Gerhard.
By definition agri-environmental programs of the EU aim not only at improving environmental quality, but also at reducing overproduction while supporting farm income. The aim of the study is to empirically measure the success of agri-environmental programs in regard to the objective of reducing or stabilizing production levels.
Tipo: Conference Paper or Presentation Palavras-chave: Environmental Economics and Policy.
Ano: 2002 URL: http://purl.umn.edu/19666
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Price sensitivity within and across retail formats 31
Widenhorn, Andreas; Salhofer, Klaus.
Paper removed at the request of the first author, October 2013.
Tipo: Presentation Palavras-chave: Demand; Elasticity; Discount; Retail formats; International Relations/Trade; D12.
Ano: 2012 URL: http://purl.umn.edu/124108
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Production Effects of Agri-environmental "Green Box" Payments: Empirical Results from the EU 31
Salhofer, Klaus; Streicher, Gerhard.
Agri-environmental programs are part of the green box of the GATT Uruguay Round and are supposed to "have no, or at most minimal trade distorting effects or effects on production." In addition, "the amount of payment shall be limited to the extra costs or loss of income involved in complying with the government programme." Utilizing farm accounting data we estimate the effects on yields for ten agri-environmental programs in Austria, which account for 12% of EU's budget expenditures for agri-environmental programs. Only three out of these ten programs have significant negative effects on yields, while one program has a significant positive impact and the rest has no significant impact. These results suggest that there are serious windfall profits...
Tipo: Conference Paper or Presentation Palavras-chave: Agri-environmental programs; Green box; WTO; Common Agricultural Policy; Decoupling; Environmental Economics and Policy; F16; Q56.
Ano: 2005 URL: http://purl.umn.edu/24494
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Promoting Organic Food: Information Policy Versus Production Subsidy 31
Tribl, Christoph; Salhofer, Klaus.
In developed countries governments aim to increase the market share of organic products. Assuming that organic farming creates a positive externality, we address the question of how this environmental benefit can be internalized best. Using the concept of heterogeneous producers and consumers we compare two policy options to enhance organic supply and demand with respect to their efficiency and distributional effect: First, we analyze the effect of a supply-side oriented policy like a subsidy on organic production. Second, we compare this policy measure to a demand-side oriented information policy, which aims to enhance the acceptance and identification of an organic food label. Third, we assume a mix of both policy measures. The main findings of this...
Tipo: Conference Paper or Presentation Palavras-chave: Organic food; Labeling; Production subsidy; Information policy; Welfare; Agricultural and Food Policy; D61; D62; L15; Q18.
Ano: 2005 URL: http://purl.umn.edu/24653
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PROMOTING ORGANIC FOOD: INFORMATION POLICY VERSUS PRODUCTION SUBSIDY 31
Tribl, Christoph; Salhofer, Klaus.
Governments in developed countries aim to increase the market share of organic products as a possibility to improve the environment or animal welfare or as a reaction to food crises and changing consumer preferences. Assuming that organic farming creates a positive externality, we address the question of how this environmental benefit can be internalized best. We use the concepts of heterogeneous producers with different unit production costs and heterogeneous consumers with different preferences for conventional and organic food, and compare two policy options to enhance organic supply and demand with respect to their efficiency and distributional effect: Firstly, we analyze the effect of a supply-side oriented policy like a subsidy on organic production...
Tipo: Conference Paper or Presentation Palavras-chave: Marketing.
Ano: 2004 URL: http://purl.umn.edu/20003
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Scale Efficiency in Organic and Conventional Dairy Farming 31
Salhofer, Klaus; Kargiannis, Giannis; Sinabell, Franz.
Recently, several studies compared the performance of conventional and organic farms. Most studies concentrated on technical efficiency. In this paper we add to this literature by also comparing the scale efficiency of conventional and organic milk farms in Austria during the period 1997-2002. To do so we utilize a bilateral production frontier that includes both production technologies and Green’s (1995a,b) true fixed effects model to account for firm specific time-invariant heterogeneity and technical inefficiency. We find both groups of farms to be on average equally technical efficient (when compared to their production frontier), but conventional farms being on average considerably more scale efficient. However, while scale efficiency remained...
Tipo: Presentation Palavras-chave: Scale efficiency; Conventional vs. organic farming; Milk production; Austria; Production Economics; Q12; D20.
Ano: 2012 URL: http://purl.umn.edu/124119
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SPATIAL COMPETITION IN MILK PROCESSING INDUSTRY 31
Wagner, Peter; Huck, Petra; Salhofer, Klaus.
A model of uniform spatial pricing with Löschian conduct as developeded by Alvarez et al. is tested for the milk processing industry in Germany. Results confirm some oligopsony power in this spatial markets and a low pass-through of a retail price change to the farm.
Tipo: Conference Paper or Presentation Palavras-chave: Research Methods/ Statistical Methods.
Ano: 2004 URL: http://purl.umn.edu/20112
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Spatial Competition of Milk Processing Cooperatives in Northern Germany 31
Huck, Petra; Salhofer, Klaus; Tribl, Christoph.
In this paper we develop a theoretical model of competition among marketing cooperatives (co-ops) in a spatial market setting assuming uniform delivered pricing and Loschian conduct. The model is an extension to Alvarez et al.'s (2000) spatial competition model for investorowned firms (IOF). Theoretical results include i) that the prices for raw milk are, ceteris paribus, higher in a pure market of coops than in a pure IOF market; ii) that even coops may imperfectly transmit price changes upstream; and iii) that the price farmers receive for their raw product is a function of economic space (distance times transportation costs) between coops. We test our theoretical findings for milk processing co-ops in Northern Germany using data of monthly average...
Tipo: Conference Paper or Presentation Palavras-chave: Spatial competition; Oligopsony; Milk processing; Cooperatives; Agribusiness; L13; Q13.
Ano: 2006 URL: http://purl.umn.edu/25633
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Teaching sustainable resource management in uncertain environment 31
Huck, Petra; Salhofer, Klaus.
Dynamic evolutions of resource stocks with stochastic elements in the transition equation are in general very difficult to master. Their handling requires a deep understanding of control theory, probability theory and sometimes even of game theory due to strategic interaction of ‘'agents'’. But without strong mathematical backgrounds, students from adjacent research fields have a hard time with control theory. The same is true for probability theory and game theory. One way to avoid this problem is to change the aim: instead of target function optimization, guarantee the continuance of the system within certain boundaries. The latter relates to Viability theory. Unfortunately, even Viability theory requires more mathematics than the '‘average'’ student...
Tipo: Conference Paper or Presentation Palavras-chave: Resource /Energy Economics and Policy.
Ano: 2006 URL: http://purl.umn.edu/21451
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TESTING FOR EFFICIENCY: A POLICY ANALYSIS WITH PROBABILITY DISTRIBUTIONS 31
Salhofer, Klaus; Schmid, Erwin; Streicher, Gerhard; Schneider, Friedrich.
The study evaluates the efficiency of government intervention using a vertical structured model including imperfectly competitive agricultural input markets, the bread grain market, and the imperfectly competitive food industry. To test for policy efficiency the actually observed bread grain policy is compared to a hypothetical efficient policy. To account for the sensitivity of the results in regard to the model parameter values computer-intensive simulation procedures and surface response functions are utilized.
Tipo: Conference Paper or Presentation Palavras-chave: Agricultural policy; Efficient combination of policy instruments; Statistical policy analysis; Productivity Analysis.
Ano: 2003 URL: http://purl.umn.edu/25891
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Testing for the Efficiency of a Policy Intended to Meet Objectives: General Model and Application 31
Streicher, Gerhard; Schmid, Erwin; Salhofer, Klaus.
This study presents a general model demonstrating how to measure the (in)efficiency of a policy intended to meet objectives. If it is assumed that the government has available only those policy instruments it actually utilizes, our method is a test as to whether the government combines these instruments efficiently. In addition, one could also include other policy instruments, which are not actually used, but are available to the government. Our general model is applied to bread grain policy in Austria. The primary result is that the policy was quite inefficient in meeting the two main objectives of farm income support and self-sufficiency. The stochastic nature of our efficiency measures is acknowledged by taking into account the inherent uncertainty of...
Tipo: Journal Article Palavras-chave: Agricultural policy; Policy efficiency; Statistical policy analysis; Agricultural and Food Policy.
Ano: 2006 URL: http://purl.umn.edu/8613
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The Economics of Delaying Policy Change: An Application to the 1992 CAP Reform 31
Mittenzwei, Klaus; Bullock, David S.; Salhofer, Klaus; Kola, Jukka.
Positive political economy is usually concerned with economic explanations of observed policy choices, while the timing of a policy reform has not gained similar attention. This is somewhat surprising since policy makers most often are free to decide both the design and timing of a policy reform. Drawing on insights from recent developments in the finance literature on investment under uncertainty, here we apply the idea of option value to the analysis of government policy making. Common political-economic explanations of the 1992 CAP reform are that policymakers felt domestic political pressure to make the CAP more efficient, and also international political pressure and to bring the CAP in line with treaty obligations. Although these arguments are sound,...
Tipo: Conference Paper or Presentation Palavras-chave: Agricultural and Food Policy.
Ano: 2009 URL: http://purl.umn.edu/50957
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