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ACT Now or Later: The Economics of Malaria Resistance AgEcon
Laxminarayan, Ramanan.
In the past, malaria control efforts in sub-Saharan Africa have relied on a combination of vector control and effective treatment using chloroquine. With increasing resistance to chloroquine, attention has now turned to alternative treatment strategies to replace this failing drug. Although there are strong theoretical arguments in favor of switching to more expensive artemisinin-based combination treatments (ACTs), the validity of these arguments in the face of financial constraints has not been previously analyzed. In this paper, we use a Bioeconomic model of malaria transmission and evolution of drug resistance to examine questions of optimal treatment strategy and coverage when drug resistance places an additional constraint on choices available to the...
Tipo: Working or Discussion Paper Palavras-chave: Malaria; Mathematical models; Drug resistance; Bioeconomics; Health Economics and Policy; I10; I19; C61.
Ano: 2003 URL: http://purl.umn.edu/10699
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Sacrifice, discounting and climate policy: five questions AgEcon
Karp, Larry S..
I provide a selective review of discounting and climate policy. After reviewing evidence on the importance of the discount rate in setting policy, I ask whether standard models tend to exaggerate the sacrifices that the current generation needs to undertake in order to internalize climate damages. I then consider whether the risk of catastrophic damage really overwhelms discounting, in the determination of optimal policy. I revisit the question of how we actually think about the distant future.
Tipo: Working or Discussion Paper Palavras-chave: Climate change; Discounting; Intergenerational conflict; Catastrophic risk; Hyperbolic discounting; Environmental Economics and Policy; Research Methods/ Statistical Methods; Resource /Energy Economics and Policy; C61; C73; D63; D99; Q54.
Ano: 2009 URL: http://purl.umn.edu/51612
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TO NEGOTIATE OR TO GAME THEORIZE: Negotiation vs. Game Theory Outcomes for Water Allocation Problems in the Kat Basin, South Africa AgEcon
Dinar, Ariel; Farolfi, Stefano; Patrone, Fioravante; Rowntree, Kate.
The 6th MEETING ON GAME THEORY AND PRACTICE Zaragoza, Spain 10-12 July 2006
Tipo: Working or Discussion Paper Palavras-chave: Negotiation; Role-playing game; Core; Nucleolus; Shapley value; Water allocation; Economic efficiency; Planning models; Resource /Energy Economics and Policy; C61; C71; C78; Q25; Q56; R14.
Ano: 2006 URL: http://purl.umn.edu/60888
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The Free Trade Area of the Americas and the Market for Processed Orange Products AgEcon
Spreen, Thomas H.; Brewster, Charlene; Brown, Mark G..
The proposed Free Trade Area of the Americas would join the world’s two largest processed orange producing regions: Brazil and the United States. Because the United States currently imposes a sizeable tariff on imported processed orange products, there is concern by U.S. orange growers over possible adverse effects resulting from tariff elimination. A model of the world processed orange market is developed as a spatial equilibrium model with implicit supply functions based on the dynamic behavior of orange production. The model is used to estimate the impact of U.S. tariff elimination on U.S. production, grower and processor prices, and imports. The results suggest a sizeable price impact on U.S. producers if the tariff is eliminated.
Tipo: Journal Article Palavras-chave: Orange juice; Spatial equilibrium; Tariffs; Trade; C61; F13.
Ano: 2003 URL: http://purl.umn.edu/37837
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Modelos de valoracion en ambiente de incertidumbre AgEcon
Bellver, Jeronimo Aznar; Martinez, Francisco Guijarro.
Resumen En este trabajo se presentan diversos modelos de valoración en ambiente de incertidumbre que combinan información precisa e imprecisa. En el desarrollo de los mismos se ha extendido la técnica de programación por metas básica a modelos que permiten considerar intervalos en la expresión del precio o las variables explicativas del mismo, enunciando una serie de proposiciones con las que se obtiene un completo conocimiento sobre el grado de adecuación entre los valores observados en el precio y los valores estimados por la función de valoración. Así mismo, se ha formulado un índice de adecuación que permite comparar diferentes modelos obtenidos mediante la metodología propuesta. Palabras clave: Valoración, Incertidumbre, Programación por metas con...
Tipo: Journal Article Palavras-chave: Valuation; Uncertainty; Interval goal programming; Research Methods/ Statistical Methods; C61; G12; Q14.
Ano: 2004 URL: http://purl.umn.edu/28731
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MUNICIPALITY DISAGGREGATION OF GERMAN'S AGRICULTURAL SECTOR MODEL RAUMIS AgEcon
Roeder, Norbert; Gocht, Alexander.
Since several decades the RAUMIS modelling system is applied for policy impact assessments to measure the impact of agriculture on the environment. A disaggregation at the municipality level with more than 9.000 administrative units, instead of currently used 316 counties, would tremendously improve the environmental impact analysis. Two sets of data are used for this purpose. The first are geo-referenced data, that are, however, incomplete with respect its coverage of production activities in agriculture. The second set is the micro census statistic itself, that has a full coverage, but data protection rules (DPR) prohibit its straightforward use. The paper show how this bottleneck can be passed to obtain a reliable modelling data set at municipality...
Tipo: Conference Paper or Presentation Palavras-chave: Highest Posterior Density estimator (HPD); RAUMIS; Down scaling; Agricultural and Food Policy; C11; C61; C81; Q15.
Ano: 2011 URL: http://purl.umn.edu/99248
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Selective vs. Broad-Spectrum Pesticides: When Do Private Decisions Differ from Socially Optimal Decisions? AgEcon
Grogan, Kelly A.; Goodhue, Rachael E..
This paper examines the spatial externalities of conventional and organic pest control methods to determine if, and how, the two types affect each other. These interactions make the problem more complicated than the usual analysis of a single externality. The numerical simulation model includes one organically managed and one conventionally managed field. One pest and one predator of the pest move between the two fields over five seasons. In each season, the conventional grower has the option of applying a broad-spectrum pesticide that kills the predator a selective pesticide that has no adverse effects on the predator but is either more expensive or less effective than the broad-spectrum pesticide. The organic grower can apply an organic pesticide,...
Tipo: Conference Paper or Presentation Palavras-chave: Spatial-dynamic games; Spatial externalities; Non-cooperative games; Organic agriculture; Biological control; Agricultural policy; Agricultural and Food Policy; Crop Production/Industries; Resource /Energy Economics and Policy; C61; C72; Q18; Q52; Q57.
Ano: 2011 URL: http://purl.umn.edu/103760
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Safe Minimum Standards in Dynamic Resource Problems -- Conditions for Living on the Edge of Risk AgEcon
Margolis, Michael; Naevdal, Eric.
Safe Minimum Standards (SMSs) have been advocated as a policy rule for environmental problems where uncertainty about risks and consequences are thought to be profound. This paper explores the rationale for such a policy within a dynamic framework and derives conditions for when SMSs can be summarily dismissed as a policy choice and for when SMSs can be defended as an optimal policy based on standard economic criteria. We have determined that these conditions can be checked with quite limited information about damages and risks. In order to analyze the SMSs in a dynamic setting, we have developed a method for solving optimal control problems where the state space is divided into risky and non-risky subsets.
Tipo: Working or Discussion Paper Palavras-chave: Safe minimum standards; Optimal control; Critical zone; Threshold effects; Mixed risk spaces; Risk and Uncertainty; C61; Q20; Q30.
Ano: 2004 URL: http://purl.umn.edu/10568
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On the Optimal Taxation of Common-Pool Resources AgEcon
Kossioris, Georgios; Plexousakis, Michael; Xepapadeas, Anastasios; Fe Zeeuw, Aart.
Recent research developments in common-pool resource models emphasize the importance of links with ecological systems and the presence of non-linearities, thresholds and multiple steady states. In a recent paper Kossioris et al. (2008) develop a methodology for deriving feedback Nash equilibria for non-linear differential games and apply this methodology to a common-pool resource model of a lake where pollution corresponds to benefits and at the same time affects the ecosystem services. This paper studies the structure of optimal state- dependent taxes that steer the combined economic-ecological system towards the trajectory of optimal management, and provides an algorithm for calculating such taxes.
Tipo: Working or Discussion Paper Palavras-chave: Differential Games; Non-linear Feedback Nash Equilibria; Ecosystems; Optimal State-dependent Tax; Environmental Economics and Policy; Q25; C73; C61.
Ano: 2010 URL: http://purl.umn.edu/94619
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Cod today and none tomorrow: The Economic Value of a Marine Reserve AgEcon
Grafton, R. Quentin; Kompas, Tom.
The northern cod fishery was once one of the world’s largest capture fisheries. Using data from the fishery, this research calculated the economic value of a marine reserve using a stochastic optimal control model with a jump-diffusion process. The analysis shows that, an optimal-sized marine reserve in this fishery would have prevented the fishery’s collapse and generated a triple payoff. Even if harvesting had been ‘optimal’ the profits from fishing would have been raised. The recovery time would also have decreased for the biomass to return to its former state and smoothed fishers’ harvests and profits. Following a negative shock, the chance of a catastrophic collapse would have been lowered.
Tipo: Report Palavras-chave: Marine reserves; Stochastic control; Fisheries; Environmental Economics and Policy; C61; Q22.
Ano: 2009 URL: http://purl.umn.edu/94822
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Structural Adjustment Processes of Farming Enterprises: The Role of Trust for Cooperation and Collaboration Strategies AgEcon
Albisser, Gregor.
As a consequence of the reorientation of the Swiss as well as the European agricultural policy, prices for agricultural products drop and farmers have to reduce their production costs or will lose income. Therefore a lot of farmers have a high incentive to change their production structures. One of the most effective strategies to reduce production costs is going into cooperation and collaboration with other farmers. Therewith farmers can profit from scale effects without changing the property rights. Several case studies as well as results from modeling reveal that farmers have more income with less workload. In reality only 3% of Swiss farmers have gone into a collective farming system. Weaker forms of cooperation like sharing machinery are more common...
Tipo: Conference Paper or Presentation Palavras-chave: Agent-based simulation; Structural change; Cooperation strategies; Collaboration; Agribusiness; Farm Management; C61; Q12; Q15.
Ano: 2007 URL: http://purl.umn.edu/6576
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Sophisticated Program Planning Approaches Generate Large Benefits in High Risk Crop Farming AgEcon
Musshoff, Oliver; Hirschauer, Norbert.
Agricultural production relies to a great extent on biological processes in natural environments. In addition to volatile prices, it is thus heavily exposed to risks caused by the variability of natural conditions such as rainfall, temperature and pests. With a view to the apparently lacking support of risky farm production program decisions through formal planning models, the objective of this paper is to examine whether, and eventually by how much, farmers’ “intuitive” program decisions can be improved through formal statistical analyses and stochastic optimization models. In this performance comparison, we use the results of the formal planning approach that are generated in a quasi ex-ante analysis as a normative benchmark for the empirically observed...
Tipo: Conference Paper or Presentation Palavras-chave: Stochastic optimization; Stochastic processes; Production risk; Program planning; Time series analysis; C1; C61; M11; Q12.
Ano: 2008 URL: http://purl.umn.edu/36865
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Profit and Variance Analysis of Cotton Production Technologies and Rotation Crops in Georgia AgEcon
Flanders, Archie; White, Fred C.; Shurley, W. Donald; Brown, Steve M..
Genetically modified cotton varieties have the potential for increasing returns and/or decreasing labor requirements. A nonlinear optimization model is applied to a whole farm analysis for evaluating cotton production technologies. This model maximizes farm utility, composed of expected returns and their variability, at various risk aversion levels in order to evaluate cotton production technologies. Results show that while conventional cotton maximizes utility in a risk-neutral situation, transgenic cotton varieties entered into the optimal solutions as higher levels of risk aversion were considered.
Tipo: Journal Article Palavras-chave: Cotton production technologies; Mathematical optimization; Risk aversion; Whole farm analysis; C61; Q16.
Ano: 2003 URL: http://purl.umn.edu/43204
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Optimal Agricultural Credit Association Branch Office Locations AgEcon
Scaletta, Timi M.; Stokes, Jeffrey R..
Since the farm financial crisis of the 1980s, Farm Credit System banks continue to merge and consolidate to enhance competitiveness. Two mixed-integer programming models of AgChoice Agricultural Credit Association (ACA), a recently merged ACA in Pennsylvania, were developed to determine the optimal number, location, and territory of branches. The approach suggests useful information can be determined regarding the reconfiguration process after bank mergers, especially given the fact that the current AgChoice ACA configuration is available for comparison purposes.
Tipo: Journal Article Palavras-chave: Agricultural Credit Association; Compromise programming; Farm Credit System; Location model; Mixed-integer programming; C61; G21; Q14.
Ano: 2003 URL: http://purl.umn.edu/37838
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Consequences of the 2003 CAP Reform on a Mediterranean Agricultural System of Portugal AgEcon
Carvalho, Maria Leonor da Silva; Godinho, Maria de Lurdes Ferro.
Agriculture in dry land Mediterranean areas faces considerable level of production risk as result of the unpredictable weather. Governmental income stabilisation instruments have had a major impact on Mediterranean farms in changing land allocation, and changing income levels and variability. Using a mathematical programming model, the impact of the 2003 CAP reform on land allocation and on income variability is evaluated for a Portuguese Mediterranean farm. The results show an increase of extensification of production activities. They also show an increase in total farm income, a reduction in relative total income variability and an increase in relative production income variability.
Tipo: Conference Paper or Presentation Palavras-chave: Agricultural policy modelling; Decoupling; Mediterranean; Agricultural and Food Policy; Q18; C61.
Ano: 2005 URL: http://purl.umn.edu/24719
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INVESTMENT, CREDIT CONSTRAINTS AND PUBLIC POLICY IN A NEOCLASSICAL ADJUSTMENT COST FRAMEWORK AgEcon
Cechura, Lukas.
This paper deals with the analysis of the impact of credit rationing on the farmer’s economic equilibrium and the analysis of different policy scenarios in a derived neoclassical adjustment cost framework. The theoretical model is an optimal dynamic investment model, in which the upper bound on investment is introduced. The limit of the investment enables to analyse the consequence of the occurrence of credit rationing on farmer’s capital accumulation, investment and supply. The method of optimal control is used to solve the optimization problem. The results show that the occurrence of credit rationing may significantly determine a farmer’s economic equilibrium. Then the analysis of defined policy scenarios suggests that a loan guarantee efficiently solves...
Tipo: Working or Discussion Paper Palavras-chave: Credit constraint; Investment; Capital; SGAFF (Supporting and Guarantee Agricultural and Forestry Fund); Adjustment cost and farmer’s economic equilibrium; Kreditrationierung; Investitionen; Kapital; EAGFL (Europäische Ausrichtungsund Garantiefond für die Landwirtschaft); Dynamische Anpassungskosten und langfristiges Gleichgewicht.; Agribusiness; Agricultural Finance; Financial Economics; Institutional and Behavioral Economics; Political Economy; C61; Q12; Q14; Q18.
Ano: 2008 URL: http://purl.umn.edu/91954
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Controlling a Stock Pollutant with Endogenous Abatement Capital and Asymmetric Information AgEcon
Karp, Larry S.; Zhang, Jiangfeng.
Non-strategic firms with rational expectations make investment and emissions decisions. The investment rule depends on firms' beliefs about future emissions policies. We compare emissions taxes and quotas when the (strategic) regulator and (nonstrategic) firms have asymmetric information about abatement costs, and all agents use Markov Perfect decision rules. Emissions taxes create a secondary distortion at the investment stage, unless a particular condition holds; emissions quotas do not create a secondary distortion. We solve a linear-quadratic model calibrated to represent the problem of controlling greenhouse gasses. The endogeneity of abatement capital favors taxes, and it increases abatement.
Tipo: Working or Discussion Paper Palavras-chave: Pollution control; Investment; Asymmetric information; Rational expectations; Choice of instruments; Environmental Economics and Policy; C61; D8; H21; Q28.
Ano: 2002 URL: http://purl.umn.edu/25071
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International Emission Strategies under the Threat of a Sudden Jump in Damages AgEcon
Nkuiya, Bruno.
We characterize the equilibrium level of emissions, the equilibrium stock of global pollution and the discounted net social welfare for both the cooperative and non-cooperative equilibria when the countries face the threat of a sudden irreversible jump in the global damages at an unknown date. The goal is to analyze the impact of this type of uncertainty on the equilibrium behavior of the countries. We find that it can have a significant effect on those equilibria. Countries reduce their emissions to mitigate their exposure to this threat. As the level of threat rises, countries adjust their emissions to lower the stock of pollutant. However, although initially this threat has the effect of lowering the discounted net welfare, it can in the long run have a...
Tipo: Working or Discussion Paper Palavras-chave: Global pollution; Environmental uncertainty; Regime shift; Stochastic differential games; Environmental Economics and Policy; C61; C7; D81; Q54.
Ano: 2011 URL: http://purl.umn.edu/117826
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Mixed Crop Livestock Farming Incorporating Agroforestry Orchards Facing the New Cap AgEcon
Ducros, Denis; Kephaliacos, Charilaos; Ridier, Aude.
In the context of the new CAP, decoupling subsidies from production should incite farmers to reorganize their production systems, particularly through diversification opportunities. In this paper we focus our analysis on the conditions that could permit the development of extensive orchards by modelling mixed crop livestock farms, which incorporate orchards. A mathematical programming model is built to simulate various intensification levels characterizing different technical pathways within the different farm activities (cattle breeding, forage fields, arboriculture). This model also enables us to take into account some environmental indicators related to these pathways. Moreover, the method illustrates technical complementarities existing within the...
Tipo: Conference Paper or Presentation Palavras-chave: Decoupling; Diversification; Agroforestry orchards; Joint production; Mathematical programming; Agribusiness; C61; D24; Q12; Q21.
Ano: 2005 URL: http://purl.umn.edu/24532
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Pricing Benefit Externalities of Soil Carbon Sequestration in Multifunctional Agriculture AgEcon
Hartell, Jason G..
“Multifunctionality” emphasizes the benefit externality properties of nonfood products that coincide with agricultural commodity production, some of which also have public-good properties. However, determining the willingness to pay for local benefit externalities is seen as necessary but daunting. This paper pursues the idea that the valuation process might first start by estimating the incentives required to supply various levels of a benefit externality. With the use of carbon sequestration through the adoption of no-till cultivation as an example of a multifunctional benefit externality, mathematical programming is used to derive representative price schedules. The implication for incentive prices are examined in light of risk aversion.
Tipo: Journal Article Palavras-chave: Carbon sequestration; Externalities; Multifunctionality; Quadratic programming; C61; D62; Q12; Q21.
Ano: 2004 URL: http://purl.umn.edu/43416
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