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Adjustment is Much Slower than You Think AgEcon
Caballero, Ricardo J.; Engel, Eduardo M.R.A..
In most instances, the dynamic response of monetary and other policies to shocks is infrequent and lumpy. The same holds for the microeconomic response of some of the most important economic variables, such as investment, labor demand, and prices. We show that the standard practice of estimating the speed of adjustment of such variables with partial-adjustment ARMA procedures substantially overestimates this speed. For example, for the target federal funds rate, we find that the actual response to shocks is less than half as fast as the estimated response. For investment, labor demand and prices, the speed of adjustment inferred from aggregates of a small number of agents is likely to be close to instantaneous. While aggregating across microeconomic units...
Tipo: Working or Discussion Paper Palavras-chave: Speed of adjustment; Discrete adjustment; Lumpy adjustment; Aggregation; Calvo model; ARMA process; Partial adjustment; Expected response time; Monetary policy; Investment; Labor demand; Sticky prices; Idiosyncratic shocks; Impulse response function; Wold representation; Time-to-build; Financial Economics; C22; C43; D2; E2; E5.
Ano: 2003 URL: http://purl.umn.edu/28419
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Agricultural Efficiency Gains and Trade Liberalization in Sudan AgEcon
Siddig, Khalid H.A.; Babiker, Babiker Idris.
The traditional agriculture in Sudan occupies 60% of the total cultivated land and employs 65% of the agricultural population. Nevertheless, it is characterized by its low crop productivity, which is mainly driven by low technical efficiency, while drought and civil conflicts threaten most of its areas countrywide. Therefore, it has contributed only an average of 16% to the total agricultural GDP during the last decade. This paper addresses from an empirical point of view the sectoral and macroeconomic implications of agricultural efficiency improvement in Sudan and assesses the efficiency gains under the assumption of trade liberalization. Efficiency improvement experiments are implemented by augmenting the efficiency parameters of labor, capital, and...
Tipo: Working or Discussion Paper Palavras-chave: Agricultural efficiency; Liberalization; Sudan SAM; CGE analysis; Agribusiness; Agricultural and Food Policy; Agricultural Finance; Consumer/Household Economics; Crop Production/Industries; Food Security and Poverty; Labor and Human Capital; Land Economics/Use; Production Economics; Productivity Analysis; D2; D5; D6; E1; E2; F1; F2; H2.
Ano: 2011 URL: http://purl.umn.edu/112786
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CAP Reforms and Total Factor Productivity Growth in Belgian Agriculture: A Malmquist Index Approach AgEcon
Coelli, Tim J.; Perelman, Sergio; Van Lierde, Dirk.
Have the 1992 and 2000 CAP reforms had any discernable effect upon agricultural productivity? In this study we derive detailed information on the total factor productivity (TFP) growth of arable farms in Belgium over a 16-year period from 1987 to 2002. Calculations are based on a carefully constructed high-quality detailed farm-level data set containing 1728 observations, involving over 100 farms in most years. Three output variables (cereals, other crops, other outputs) and four input variables (land, labour, capital and other inputs) are constructed, using multilateral Fisher index numbers where crop aggregation is required. The TFP measures are calculated using a Malmquist TFP index relative to a series of data envelopment analysis (DEA) frontiers....
Tipo: Conference Paper or Presentation Palavras-chave: CAP reforms; Belgian agriculture; Total factor productivity; Malmquist index; Shadow shares; Agricultural and Food Policy; Productivity Analysis; C6; D2; O4; Q1.
Ano: 2006 URL: http://purl.umn.edu/25472
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Chapter 2: The Case of Australia AgEcon
Griffith, Garry R.; Wright, Vic.
Tipo: Book Palavras-chave: Food Consumption/Nutrition/Food Safety; Industrial Organization; Marketing; D2; D4; L.
Ano: 2009 URL: http://purl.umn.edu/60673
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Contracts, Transaction Costs and Agricultural Production in the Pampas AgEcon
Lema, Daniel.
This paper presents an analysis of agricultural contracts using a transaction costs approach. We contend that in a context of modern agriculture, with well defined property rights, agricultural contracts must balance costs and benefits, aligning tenant and landlord incentives towards a similar objective. The study debates the potential effects of tenancy status and duration of contracts, over soil conservation and input use. We present empirical evidence about the effects over the soil and input use in tenant (fixed rent or sharecropping) and owner-operator farms using farm level data from the 2002 National Agricultural Census of Argentina. The empirical results show some differential effects but do not support a general and clear negative effect for...
Tipo: Conference Paper or Presentation Palavras-chave: Contracts; Agriculture; Transaction Costs; Sharecropping; Property Rights; Land Tenancy; Production Economics; D2; Q15.
Ano: 2006 URL: http://purl.umn.edu/25420
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Effect of Prices, Traits and Market Structure on Corn Seeding Density AgEcon
Mitchell, Paul D.; Shi, Guanming; Ma, Xingliang; Lauer, Joseph G..
Recent agronomic research finds that economically optimal seeding densities have likely increased for many Midwestern corn farmers as a result of genetic improvements including new GM traits such as Bt corn and herbicide tolerance. We derive a per acre demand model for hybrid seed corn to examine the determinants of corn seeding densities and estimate the model using a large data set of individual farmer seed corn purchases. Current results identify factors other than prices affecting farmer corn seeding densities. Among these factors are the GM trait of the seed corn, measures of the local seed corn market structure, seed purchase source and intended end use. We interpret these effects in terms of information effects—farmers with more/better access to...
Tipo: Conference Paper or Presentation Palavras-chave: Hybrid seed corn; Bt corn; Herbicide tolerance; Herfindahl index; Corn borer; Rootworm; Hyperbolic yield model; Agribusiness; Crop Production/Industries; Farm Management; Industrial Organization; Production Economics; D2; D21; Q1; Q12.
Ano: 2009 URL: http://purl.umn.edu/49520
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Efficiency and Productivity of Farmers in Nigeria: A Study of Rice Farmers in North Central Nigeria AgEcon
Okoruwa, Victor O.; Ogundele, O.O.; Oyewusi, B.O..
This study contributes to the agricultural productivity literature in developing countries and Nigeria especially by quantifying the level of efficiency for sample of rice farmers from North Central Zone of Nigeria. A stochastic efficiency decomposition frontier analysis was used to derive technical efficiency measures separately for rice under two production systems (upland and lowland systems). Average economic efficiency of 51.9 % and 55.4 % found for up land and lowland rice farmers respectively suggests that there is room for productivity gain for farms in the sample through better use of available resources given the state of technology. Gains in productivity growth have become increasingly important to Nigerians as demand for rice continue to...
Tipo: Conference Paper or Presentation Palavras-chave: Crop Production/Industries; Productivity Analysis; D2.
Ano: 2006 URL: http://purl.umn.edu/25248
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Environmental and Distributional Impacts of Conservation Targeting Strategies AgEcon
Wu, JunJie; Zilberman, David; Babcock, Bruce A..
Resource purchasing funds have become a major tool for environmental protection and resource conservation. These funds use various strategies to target resources for environmental conservation, the choice of which may lead to striking differences in environmental performance. This paper develops an analytical framework to compare the effects of alternative targeting strategies on consumer surplus, producer surplus, and environmental benefits. We demonstrate that ignoring the output price effect of purchasing funds reduces environmental gain from the purchasing fund and, in some cases, may make a purchasing fund counterproductive. A purchasing strategy that targets resources with the highest environmental benefits may be counterproductive even if the price...
Tipo: Working or Discussion Paper Palavras-chave: Conservation funds; Distributional effects; Environmental benefits; Targeting strategies; Environmental Economics and Policy; D1; D2.
Ano: 1999 URL: http://purl.umn.edu/18528
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Estimation with Price and Output Uncertainty AgEcon
Alghalith, Moawia.
This paper extends the existing estimation methods to allow estimation under simultaneous price and output uncertainty. In contrast with the previous literature, our approach is applicable to the direct and indirect utility functions and does not require specification and estimation of the production function. We derive estimating equations for the two most common forms of output risk (additive and multiplicative risks) and empirically determine which form is appropriate. Moreover, our estimation method can be utilized by future empirical studies in several ways. First, our method can be extended to include multiple sources of uncertainty. Second, it is applicable to other specifications of output uncertainty. Third, it can be used to conduct hypothesis...
Tipo: Journal Article Palavras-chave: Estimating equations; Output uncertainty; Price uncertainty; Utility; D8; D2.
Ano: 2005 URL: http://purl.umn.edu/37108
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EXOGENOUS PRODUCTION SHOCKS AND TECHNICAL EFFICIENCY AMONG TRADITIONAL IVORIEN RICE FARMERS AgEcon
Sherlund, Shane M.; Barrett, Christopher B..
This paper uses a unique panel data set and data envelopment analysis (DEA) to obtain estimates of technical efficiency for 492 traditional rice plots in Côte d'Ivoire. The objective of this paper is to explore the importance of explicitly controlling for exogenous shocks to production in technical efficiency estimation. We show how omission of such variables in highly stochastic production environments can lead to serious inferential errors, with potentially significant policy implications. Conventional DEA estimation of a production frontier, followed by second-stage Tobit estimation of the correlates of plot- level technical efficiency, suggest widespread and substantial inefficiency related to crop fragmentation and seed varieties. However, when...
Tipo: Conference Paper or Presentation Palavras-chave: Africa (Sub-Saharan); Ivory Coast; Production frontiers; Agricultural productivity; Rice.; Crop Production/Industries; Productivity Analysis; O12; Q12; D2.
Ano: 1998 URL: http://purl.umn.edu/20945
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Getting Implicit Shadow Prices Right for the Estimation of the Malmquist Index: The Case of Agricultural Total Factor Productivity in Developing Countries AgEcon
Nin Pratt, Alejandro; Yu, Bingxin.
The Malmquist index has become extensively used in international comparisons of agricultural productivity since it does not require prices for its estimation, which are normally not available. However, the DEA approach used to estimate this index still uses implicit price information. This entails potential problems because these methods are susceptible to the effect of data noise, and shadow prices can prove to be inconsistent with prior knowledge on cost shares. In this paper we analyze implicit input shadow shares used in the DEA approach to estimate agricultural productivity using the Malmquist index for 72 developing countries. We then set bounds to the implicit input shares introducing information on their likely value and compare constrained and...
Tipo: Conference Paper or Presentation Palavras-chave: Malmquist; Shadow prices; Total factor productivity; Production Economics; Productivity Analysis; Research Methods/ Statistical Methods; D2.
Ano: 2009 URL: http://purl.umn.edu/51797
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Household Resources Allocation, Gender, and Economic Performance: Empirical Evidence from Senegal, West Africa AgEcon
Ndoye Niane, Aifa Fatimata.
This paper has examined Pareto efficiency of household resources allocation and the appropriateness to use gender-specific models rather than unitary model while investigating economic performance of men and women managers of separate plots within horticultural households in Senegal, West Africa. This paper contributes to the gender and economics literature providing empirical evidence of intrahousehold resources allocation in a specific social, economic and cultural context in which polygamy occurs and where husband and wives manage separately their plots. The findings confirm the suitability of gender-specific models to shed light on the gender differential of performance. As the subject matter is efficiency, as well in econometric as in economic point...
Tipo: Conference Paper or Presentation Palavras-chave: Household Resources Allocation; Gender; Economic Performance; Horticulture; Senegal; Agricultural and Food Policy; Crop Production/Industries; Production Economics; Productivity Analysis; D2.
Ano: 2009 URL: http://purl.umn.edu/50902
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Less Discussed Dynamics in the Czech Farm Structure Development AgEcon
Curtiss, Jarmila; Ratinger, Tomas; Medonos, Tomas.
The paper provides an empirical study of the dynamics of ownership changes in Czech agricultural companies, which are assigned by unique heterogeneity in ownership forms. Since employee ownership has retained a relatively important place in these structures, neoclassical, as well as institutional theories of labour managed firms are considered. Building upon efficiency arguments, both approaches suggest the dissolution of labour managed firms. The empirical analysis utilized detailed survey data from 2004 and accountancy data from 1997 to 2003. We used cluster analysis to classify companies into homogeneous groups with respect to their ownership structure and stage of restructuring, and analysed these characteristics in relation to performance indicators....
Tipo: Conference Paper or Presentation Palavras-chave: Cluster analysis; Czech agriculture; Ownership; Large-scale farms; Performance; Principal; Component analysis; Farm Management; D2; L1; L2.
Ano: 2006 URL: http://purl.umn.edu/25337
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Measuring Male-Female Productivity Differentials in Ethiopian Agriculture: Policy Implications for Improving the Livelihood of Female Farmers AgEcon
Ehui, Simeon K.; Yadeta, Kenea; Paulos, Zelekawork; Teklewold, Hailemariam.
An understanding of the efficiency with which women farmers are operating, particularly where they account for the largest share of the labor force required for agricultural production, is essential for designing appropriate policies to improve the overall performance of agriculture as well as the livelihood of women farmers. This paper contributes to the gender productivity debate by drawing on crop production data collected in three districts (Ada, Akaki and Gimbichu) in East Shoa, Ethiopia during the 1999/2000 cropping season through detailed multi-visit surveys of 80 farm households of which 39 were female-headed households. Using the Tornqvist-Theil index, Total factor productivity (TFP) is measured to analyze crop production efficiency differentials...
Tipo: Conference Paper or Presentation Palavras-chave: Agricultural efficiency; Total factor productivity; Gender; Ethiopian agriculture; Labor and Human Capital; D2; Q12; Q18.
Ano: 2006 URL: http://purl.umn.edu/25782
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Modeling Risk Behavior of Agricultural Production in Chinese Small Households AgEcon
Lu, Wencong C.; Xi, Aiqin; Ye, Jian.
This paper analyzed Chinese small-scale farmer's response to agricultural risks by using MOTAD model. Based on the household's data from the two villages Wangjia and Damao in Zhejiang province, we established "representative rural household" for each of the sampling villages. The results show that farmers in Zhejiang are quite sensitive to agricultural risks. However, different farming systems, the ratio of agricultural income to total family income, as well as the size of arable land, differentiates their risk response. The decision maker's risk preference not only affects the type of agricultural activities and corresponding scales they selected, but also have further effects on the micro agricultural production structure and stable growth of household's...
Tipo: Conference Paper or Presentation Palavras-chave: Farming household; Agricultural risks; Risk response; MOTAD Model; Farm Management; Risk and Uncertainty; D1; C6; D2.
Ano: 2006 URL: http://purl.umn.edu/25656
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OPTIMAL MARKETING DECISIONS FOR FEEDER CATTLE UNDER PRICE AND PRODUCTION RISK AgEcon
Wang, Xuecai; Dorfman, Jeffrey H.; McKissick, John C.; Turner, Steven C..
In many parts of the U.S., beef cattle production is a large sector of the agricultural economy, yet few of the cattle are stockered; instead the production is focused on cow-calf operations only. Restricting their operation to only the first phase of beef production may be limiting the cattle owners' profit potential. This paper examines the opportunities for operators to earn additional profit from stockering cattle. Using a representative risk-averse producer, a decision set with seven possible marketing strategies is elevated for the optimal decision in a Bayesian framework which allows for price and production risk. We find that in many instances retaining the cattle for stockering is a superior decision when done in conjunction with specific...
Tipo: Journal Article Palavras-chave: Cattle; Decision science; Estimation risk; Marketing; Livestock Production/Industries; C6; D2; Q1.
Ano: 2001 URL: http://purl.umn.edu/15442
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SERVING PRODUCERS IN VOLATILE TIMES REPORT FROM THE 2008 LARGE COMMERCIAL PRODUCER SURVEY AgEcon
Alexander, Corinne E.; Boehlje, Michael; Downey, W. Scott; Gray, Allan W.; Gunderson, Michael A.; Roucan-Kane, Maud.
Purdue University’s Center for Food and Agricultural Business undertook the 2008 Large Commercial Producer Survey with the goal of providing food and agribusiness firms with a clear depiction of the commercial producers—a group that purchases the majority of agricultural inputs. This survey summarizes the results of more than 2,500 farm operator interviews completed in January and February 2008. The center first conducted this survey in 1993 and collects new data every five years. This study offers a broad look at changes in farm businesses over time. In addition to demographic information, the questions specifically explore the goals, attitudes and buying behaviors of large commercial farming and ranching operations.
Tipo: Working or Discussion Paper Palavras-chave: Commercial producers; Buying behavior; Attitudes; Demographic; Goals; Large farms; Agribusiness; Q12; Q14; G32; J11; D2; M21.
Ano: 2009 URL: http://purl.umn.edu/56116
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Tenure Insecurity, Transaction Costs in the Land Lease Market and their Implications for Gendered Productivity Differentials AgEcon
Holden, Stein T.; Bezabih, Mintewab.
This study sets out to assess the link between land leasing behavior and productivity differentials between male and female-headed households. A double-moral hazard model allows us to show that landlord's tenure insecurity leads to sub-optimal level of effort on tenant's part, via its impact on the likelihood of contract renewal. The landlord's enforcement ability is also shown to increase the optimal level of effort. The empirical findings support the hypothesis that female heads of households have higher tenant turnover and lower enforcement ability. The results, however, show that contract renewal is not strongly linked to productivity.
Tipo: Conference Paper or Presentation Palavras-chave: Productivity; Female headed households; Contract length; Enforcement ability; Land Economics/Use; D2; Q12; Q15; C21; C7.
Ano: 2006 URL: http://purl.umn.edu/25273
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Theoretical frameworks for a productivity and efficiency analysis of agricultural enterprises AgEcon
Lissitsa, Alexej; Babitcheva, Tamara.
Das Hauptziel des vorliegenden "Discussions Paper" ist es, den russischsprachigen Leser mit den theoretischen Grundlagen der Produktivitäts- und Effizienzanalyse der landwirtschaftlichen Unternehmen vertraut zu machen. In der russischsprachigen Literatur wurden und werden bis zu heutigem Zeitpunkt in der Regel bei der Analyse der Effizienz der Unternehmen, die Kennzahlen der Rentabilität verwendet, deren Bedeutungen nach den einzelnen Unternehmen oder ihren Gruppen verglichen werden. In dieser Arbeit erfolgt eine Darstellung der im englischsprachigem Raum weitverbreiteten Methoden zur Effizienz und Produktivitätsanalyse. Die Arbeit ist so aufgebaut, dass zuerst die Unterschiede zwischen der Produktivität und Effizienz aus theoretischen Sicht erklärt und...
Tipo: Working or Discussion Paper Palavras-chave: Produktivität; Effizienz; Indexzahlentheorie; Malmquist; Törnkvist; Fisher Index; Productivity; Efficiency; Index Number Theory; Продуктивность; Эффективность; Теория индексов; Малмквист; Торнквист и Фишер индексы.; Agribusiness; Industrial Organization; Productivity Analysis; Research Methods/ Statistical Methods; B4; C6; D2; O3; O4.
Ano: 2003 URL: http://purl.umn.edu/92170
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When Should Uncertain Nonpoint Emissions be Penalized in a Trading Program? AgEcon
Hennessy, David A.; Feng, Hongli.
When nonpoint source pollution is stochastic and the damage function is convex, intuition might suggest it is more important to control a nonpoint pollution source than a point source. Earlier research has provided sufficient conditions such that the permit price for a unit of ex-ante expected emissions should be higher than the permit price for a unit of certain emissions. Herein we provide a set of necessary and sufficient conditions such that this is the case. An approach to testing for the validity of the condition set is available, and has been applied to a related problem.
Tipo: Conference Paper or Presentation Palavras-chave: Agricultural pollution; Multiple inputs; Permit trading; Social optimality; Trading ratio; Water quality; Environmental Economics and Policy; Q1; Q2; D2; D8.
Ano: 2007 URL: http://purl.umn.edu/9805
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