SABIIA - Sistema Aberto e Integrado de Informação em Agricultura (Sabiia)

Maart, Syster Christin; Musshoff, Oliver.

Replaced with revised version of paper 5/26/11.

Facing decoupling: use of payments and investment reaction to decoupling in the EU

Palavras-chave: Experimental Economics; Investment; Real Options; Agribusiness; Agricultural Finance; Farm Management; Financial Economics; Institutional and Behavioral Economics; Risk and Uncertainty; C91; D81; D92.

Ano: 2011

URL: http://purl.umn.edu/103693

Viaggi, Davide; Raggi, Meri; Gomez y Paloma, Sergio.

The main objective of this paper is to evaluate ex-post the effects of the 2003 reform, in particular decoupling, of the Common Agricultural Policy (CAP) in the European Union (EU), with a specific focus on farm investment behaviour. In the past years a number of studies have addressed the issue of the impact of EU policy reforms. However, long-term effects of policy changes and related impacts on structural and investment behaviour received relatively little attention. This study is based on a survey of farm households in a number of EU Member States. In the majority of cases, farmers stated they were indifferent to decoupling. Where any change occurred, the impact of decoupling was highly differentiated. Numerous reactions are better explained by various...

Economic Hysteresis in Variety Selection

Palavras-chave: Decoupling; Empirical survey; Investment; CAP reform; Agricultural and Food Policy; Agricultural Finance; Production Economics.

Ano: 2009

URL: http://purl.umn.edu/51724

Richards, Timothy J.; Green, Gareth P..

Investing in a new perennial crop variety involves an irreversible commitment of capital and generates an uncertain return stream. As a result, the decision to adopt a new variety includes a significant real option value. Waiting for returns to rise above this real option causes a delay in adoption because of economic hysteresis. This study tests for hysteresis in the adoption of wine grape varieties using a sample of district-level data from the state of California. The empirical results show a significant hysteretic effect in wine grape investment, which might be reduced by activities that smooth earnings over time.

Tipo: Journal Article

Palavras-chave: California; Grapes; Hysteresis; Investment; Jump diffusion; Real options; Variety adoption; Wine; Q14; Q11; D92; C34.

Ano: 2003

URL: http://purl.umn.edu/37310

Biotechnology: Can We Trade It?

Bredahl, Maury E.; Kalaitzandonakes, Nicholas G..

The question in the title is divided into: (1) Can we trade the current generation of products from biotech or the technology itself? and (2) Can we trade the future generations of products of the technology? Controversy over the first generation of products has resulted in international trade being segmented into two markets: GMO-free and GMO. The first market is supported by voluntary labelling, making mandatory labelling largely unnecessary. While trade flows have been rearranged, markets have been little affected. We conclude that trade in the future generation will be dominated by capital and technology flows, with production for local markets dominating product trade flows.

Tipo: Journal Article

Palavras-chave: GMO; Institutions; Investment; Labelling; Trade; International Relations/Trade.

Ano: 2001

URL: http://purl.umn.edu/23860

Corruption and economic growth in Lebanon

Farida, Moe; Ahmadi-Esfahani, Fredoun Z..

This paper seeks to examine the impact of corruption on economic growth in Lebanon. Using a neoclassical model, we hypothesise that corruption reduces the country's standard of living as measured by real per capita GDP. We show that corruption deters growth indirectly through reducing the factor input productivity in a Cobb-Douglas production function. We provide empirical evidence suggesting that corruption increases inefficiencies in government expenditure and reduces investment and human capital productivity, leading to a negative impact on output. The implications of the analysis are explored.

International environmental agreements with mixed strategies and investment

Palavras-chave: Corruption; Economic growth; Investment; Human capital; Government expenditure; Foreign aid; Institutional and Behavioral Economics; Labor and Human Capital; Public Economics.

Ano: 2008

URL: http://purl.umn.edu/6043

Hong, Fuhsai; Karp, Larry S..

We modify a canonical participation game used to study International Environmental Agreements (IEA), considering both mixed and pure strategies at the participation stage, and including a prior cost-reducing investment stage. The use of mixed strategies at the participation stage reverses a familiar result and also reverses the policy implication of that result: with mixed strategies, equilibrium participation and welfare is higher in equilibria that involve higher investment.

Tipo: Working Paper

Palavras-chave: International Environmental Agreement; Climate agreement; Participation game; Investment; Mixed strategy; Environmental Economics and Policy; C72; H4; Q54.

Ano: 2012

URL: http://purl.umn.edu/123719

Small dams and social capital in Yemen: How assistance strategies affect local investment and institutions

Vermillion, Douglas Lynn; Al-Shaybani, Said.

This report examines the development of eight small dam projects in the mountainous province of Al-Mahweet in north-central Yemen. The report also investigates how external assistance affects incentives for local people to invest in dam development and water delivery systems and also to create rules, property rights and institutional arrangements to manage the dam and water.

Tipo: Report

Palavras-chave: Dams; Investment; Development aid; Irrigated farming; Villages; Water delivery; Agribusiness; Agricultural Finance; Community/Rural/Urban Development; Environmental Economics and Policy; Farm Management; Land Economics/Use.

Ano: 2004

URL: http://purl.umn.edu/44555

When Government Spending Serves the Elites: Consequences for Economic Growth in a Context of Market Imperfections

Lopez, Ramon E.; Islam, Asif M..

Government spending should be regarded as a social and political phenomenon, not merely as a technical choice. We argue that there is an implicit contract between the organized elites and politicians which often leads to a pro-elite allocation of public resources. A natural and simple taxonomy of government spending follows from this view: spending in public goods broadly defined which mitigate market failures versus spending in non-social subsidies, mainly a vehicle to serve the elites. We theoretically and empirically show that pro-elite spending biases are costly in terms of economic growth. The empirical findings are exceptionally robust.

Access to Credit, Factor Allocation and Farm Productivity: Evidence From the CEE Transition Economies

Palavras-chave: Government spending; Economic growth; Market imperfections; Investment; Subsidies; International Development; Labor and Human Capital; Political Economy; Public Economics.

Ano: 2008

URL: http://purl.umn.edu/45875

Ciaian, Pavel; Falkowski, Jan; Kancs, d'Artis.

This paper analyses how farm access to credit affects farm input allocation and farm efficiency in the CEE countries. Drawing on a unique farm level panel data with 37,409 observations and employing a matching estimator we are able to control for the key source of endogeneity – unoberserved heterogeneity. We find that farms are credit constrained both in the short-run as well as in the long-run, but that credit constraint is asymmetric between inputs. Our estimates suggest that farm access to credit increases TFP up to 1.9% per 1000 EUR of additional credit. The use of variable inputs and capital investment increases up to 2.3% and 29%, respectively, per 1000 EUR of additional credit. Due to credit-financed investment in labour-saving farm equipment,...

Managing Dairy Heifer Growth Investment

Palavras-chave: Access to credit; Investment; Factor allocation; Productivity; Transition countries; Agricultural and Food Policy; Farm Management; Land Economics/Use; Q12; P14.

Ano: 2010

URL: http://purl.umn.edu/61347

Wolf, Christopher A.; Hadrich, Joleen C.; Vandehaar, M.J..

Accelerated prepubertal growth rates can lower heifer raising costs but may put heifers at risk for impaired mammary development and have been found to be detrimental decreased to milk production in the first lactation. The tradeoff between heifer raising costs and milk production loss is examined in a capital budgeting model. Monthly annuity net present value of a heifer investment through the first lactation is assessed for heifers calving at 20, 22, 24, 26 and 28 months of age. A 24 mo AFC base case strategy with 9009.5 kg subsequent first lactation milk yields $7.34 in returns per month. Accelerated growth resulted in higher returns ($12.77/mo for 20 mo AFC; $9.86/mo for 22 mo AFC) when milk production is not affected as total raising costs decline...

Investing In African Agriculture to Halve Poverty By 2015

Palavras-chave: Heifer growth; Economics; Investment; Livestock Production/Industries.

Ano: 2006

URL: http://purl.umn.edu/7429

Fan, Shenggen; Johnson, Michael; Saurkar, Anuja; Makombe, Tsitsi.

This paper proposes a simple methodology to estimate the agricultural spending that will be required to achieve the Millennium Development Goal of halving poverty by 2015 (MDG1) in 30 sub-Saharan African countries. This method uses growth-poverty and growth-expenditure elasticities to estimate the financial resources required to meet the MDG1, considering both the direct and indirect impacts of agricultural spending on poverty reduction. The paper attempts to address a key knowledge gap by improving estimation of MDG costs at both the regional and country levels.

LIVESTOCK SECTORS IN THE ECONOMIES OF EASTERN EUROPE AND THE FORMER SOVIET UNION; TRANSITION FROM PLAN TO MARKET AND THE ROAD AHEAD

Palavras-chave: Poverty; Millennium Development Goals; Investment; Sub-Saharan Africa; Agriculture; Food Security and Poverty.

Ano: 2008

URL: http://purl.umn.edu/42807

Bjornlund, Britta; Cochrane, Nancy J.; Haley, Mildred M.; Hoskin, Roger; Liefert, Olga; Paarlberg, Philip L..

This report examines the restructuring of the livestock sectors in five countries: Russia, Ukraine, Poland, Hungary, and Romania. All five countries experienced a decline in both animal inventories and meat output during the early years of transition away from a centrally planned economy. ERS, in cooperation with Purdue University, developed five general equilibrium models depicting the economies of each nation. The models were used to evaluate capital investment at different stages of production; the rise in land prices that would result from a better functioning land market; reduced marketing costs; increased availability of credit; and, the creation of off-farm employment to draw labor out of agriculture. The study identifies potential trade and...

Tipo: Report

Palavras-chave: Livestock sector; Eastern Europe; Centrally planned economy; Cattle; Dairy; Beef; Pork; Poultry; Hogs; Property rights; Trade; Investment; Reform; Livestock Production/Industries.

Ano: 2002

URL: http://purl.umn.edu/33977

Uncertain Land Availability and Perceived Biases in Investment Decisions: The Case of Dutch Dairy Farms

Feinerman, Eli; Peerlings, Jack H.M..

Uncertainty about the possibility of acquiring land can be rather large in the EU for sectors like dairy farming. Farm-level investment decisions are commonly made ex-ante when the farmer is not certain about the possibility of purchasing land. This possibility is realized only in a future period. In this paper, we have developed and applied a simple two-period model in which a profit-maximizing farmer, facing uncertainty about the possibility of acquiring land, had to choose the optimal mix of capital (buildings) investment and land endowment. We have shown that commonly "observed" biases towards non-optimal investment decisions are not necessarily justified. Rather, these perceived biases may be the result of evaluating investment decisions without...

IMPACTS OF FINANCIAL CHARACTERISTICS AND THE BOOM-BUST CYCLE ON THE FARM INVENTORY-CASH FLOW RELATIONSHIP

Palavras-chave: Investment; Land; Uncertainty; Land Economics/Use.

Ano: 2002

URL: http://purl.umn.edu/24949

Bierlen, Ralph W.; Ahrendsen, Bruce L.; Dixon, Bruce L..

The sensitivity of farm inventory investment to movements in cash flow is tested. Inventories should be sensitive to shifts in cash flow because inventory investment is readily reversible and inventories are a significant portion of assets. Investment models estimated with Kansas farm panel data indicate that: (a) farms absorb internal finance shocks by adjusting inventories, (b) the inventory investment of livestock and high-debt farms are more sensitive to movements in cash flow than crop and low-debt farms, and (c) inventory investment is more sensitive to cash flow during the 1981-86 bust and the 1987-92 recovery than during the 1975-80 boom.

Tipo: Journal Article

Palavras-chave: Cash flow; Credit constraints; Farm cycles; Farm inventories; Investment; Investment models; Agricultural Finance.

Ano: 1998

URL: http://purl.umn.edu/15560

VIABILIDADE FINANCEIRA NA INTERNALIZAÇÃO DA PRODUÇÃO DE RAÇÃO NA SUINOCULTURA

Bispo, Oscar Neto De Almeida; Ferreira, Marco Aurelio Marques; Abrantes, Luiz Antonio.

Utilizando-se a avaliação de viabilidade financeira, associada às técnicas de análise de risco, este estudo investigou os benefícios e a atratividade da internalização da fabricação de ração na suinocultura, considerando os quesitos atratividade financeira e custos de transação. No cenário determinístico a internalizacão apresentou viabilidade, porém, à luz da teoria de riscos essa viabilidade foi questionada. Isso porque a internalização que gera benefícios rentáveis, traz consigo a incorporação de riscos que antes eram do produtor de ração e não do suinocultor. O estudo demonstrou que, ainda que existam riscos, os possíveis custos gerados pelos ativos específicos podem ser diluídos através do horizonte de tempo do projeto de investimento, visto que as...

Modelling Corruption in a Cobb-Douglas Production Function Framework

Palavras-chave: Investimento; Agronegócios; Risco; Custos de transação; Suinocultura; Investment; Agrobusiness; Risks; Transaction costs; Swine confinement; Livestock Production/Industries.

Ano: 2008

URL: http://purl.umn.edu/112723

Farida, Moe; Ahmadi-Esfahani, Fredoun Z..

In this paper, we extend the Solow growth model to include corruption as a determinant of the multifactor productivity using a Cobb-Douglas production function framework. In addition to the classical components of any growth model (output, labor, capital), we incorporate corruption as a determinant of government expenditure, investment and foreign aid. It is proposed that output and growth are influenced by the level of corruption. This model is to be tested empirically to trace the corruptive behaviour in Lebanon based on the available time series data.

Financial constraints in economic transition: Empirical evidence from Ukrainian large farms

Palavras-chave: Corruption; Economic growth; Investment; Government expenditure; Foreign aid; International Development.

Ano: 2007

URL: http://purl.umn.edu/10400

Zinych, Nataliya; Odening, Martin; Huettel, Silke.

This paper addresses the question of financial constraints in Ukrainian agriculture in transition. The main objective is to reveal the evidence of the both phenomena, soft budget constraints and credit rationing, investigating investment behaviour of large farms in Ukraine. Our empirical analysis is based on unbalanced panel data containing 529 agricultural enterprises from three Ukrainian regions between 2001 and 2005. Estimates of the Euler investment equation for several sub-samples reveal a dissimilar level of financial constraints. We confirm the presence of the soft financial environment (soft budget constraints) for the Ukrainian large farms being in an unconstrained financial regime. The farms belong to this regime if they receive credits after...

A földpiaci sajátosságok és tendenciák

Palavras-chave: Transition agriculture; Investment; Soft budget constraints; Credit rationing; Ukraine; Agricultural Finance.

Ano: 2007

URL: http://purl.umn.edu/7834

Minimizing the negative environmental and health impacts of agricultural water resources development in Sub-Saharan Africa

Kurucz, Adrienn.

Az elmúlt években ugyan emelkedtek a hazai földárak, de az uniós csatlakozástól várt jelentős árnövekedés és földpiaci forgalomélénkülés elmaradt, sőt, a bérleti díjakban sem hozott átütő fordulatot. A közelmúltban erősödött a magyarországi földpiac megmozdulását várók tábora, a 2011 májusában lejáró derogáció miatt. A szakemberek optimisták, mert a lejáró derogációval kiszélesedhet a vásárlói kör. A hazai agrárgazdaság egyik legnagyobb gondja a tőkehiány, ami akadályozza a technikai és technológiai fejlesztést, az ágazat versenyképessé és jövedelmezőbbé tételét. A földpiac megnyitása becslések szerint ezer milliárd forintot hozhatna az ágazatba, hatalmas lökést adhatna az innovációnak és ugrásszerűen javíthatna az agrárgazdaságból közvetve vagy...

Tipo: Journal Article

Palavras-chave: Földpiac; Földár; Beruházás; Válság; Derogáció; Land market; Land prices; Investment; Crisis; Derogation; Agricultural and Food Policy; Land Economics/Use.

Ano: 2010

URL: http://purl.umn.edu/99140

McCartney, Matthew P.; Boelee, Eline; Cofie, Olufunke O.; Mutero, Clifford M..

This paper provides a synopsis of environmental and health impacts arising from agricultural water development in sub-Saharan Africa and recommends ways to increase the sustainability of investments in irrigation by giving greater prominence to health and environmental concerns. In many places in the region, irrigation is a key means of enhancing agricultural productivity that can reduce poverty and improve livelihoods. However, failure to adequately foresee, plan and manage the negative environmental and health impacts arising from irrigation undermines the sustainability of many schemes and can worsen poverty. To improve sustainability, environmental and health issues must be at the core of future irrigation development with much greater emphasis on the...