Hybrid journal (It can contain Open Access articles) ISSN (Print) 0165-1587 - ISSN (Online) 1464-3618 Published by Oxford University Press[396 journals]
Authors:Ma Q; Paudel K, Gu L, et al. Pages: 677 - 721 Abstract: Yield and return of plants grown in a region are generally closely related. Agricultural scientists are less likely to recommend a single-plant enterprise for a region because of risk and return concerns. From a risk/return perspective, a plant enterprise selection problem can be considered as a portfolio optimisation problem. We use a multiple benchmark tracking error (MBTE) model to select an optimal plant enterprise combination under two goals. A cardinality constraint (CC) is used to efficiently balance multiple objectives and limit over-diversification in a region. We use Chinese national and province level datasets from multiple plant enterprises over 25 years to identify the best plant enterprise combination with two objectives under consideration: return maximisation and risk minimisation. A simulated case using discrete programming is applied in order to analyse a farmer’s choice of specific plant enterprise and the transaction cost during rotation. In the continuous problem, the MBTE model is found to be efficient in choosing plant enterprises with high returns and low risk. The inclusion of a CC in the MBTE model efficiently reduces the plant enterprise number and volatility while creating smaller tracking errors than the MBTE model alone in an out-of-sample test. In the discrete problem, a CC can be used to search for the optimal number of plant enterprises to obtain high returns and low risk. The study and methods used can be helpful in choosing an optimal enterprise combination with multiple objectives when there are over-diversification concerns. PubDate: Sat, 31 Mar 2018 00:00:00 GMT DOI: 10.1093/erae/jby004 Issue No:Vol. 45, No. 5 (2018)
Authors:Rizov M; Davidova S, Bailey A. Pages: 723 - 748 Abstract: This paper investigates the effects of the Common Agricultural Policy (CAP) payments on the indirectly generated non-farm jobs in small and medium-sized enterprises, which are central to job creation. It examines whether there are differences in the effect according to business location – rural or urban, the agricultural supply chain and according to CAP Pillars. A microeconomic approach is employed, based on firm data from FAME dataset combined with detailed subsidies information from Department of Environment, Food and Rural Affairs. The generalised method of moments (system GMM) is used to estimate the effect of CAP payments in both static and dynamic models of employment. The results suggest positive net spillovers of CAP payments to non-farm employment. Although the magnitude of the effect is small, it is economically significant. In general, Pillar 1 has a stronger positive employment effect relative to Pillar 2. However, Pillar 2 payments have a stronger positive effect per Euro spent in rural areas and within agricultural supply chain. PubDate: Tue, 17 Apr 2018 00:00:00 GMT DOI: 10.1093/erae/jby008 Issue No:Vol. 45, No. 5 (2018)
Authors:Alemu M; Olsen S. Pages: 749 - 782 Abstract: In this paper, we test whether a Repeated Opt-Out Reminder (ROOR) can mitigate hypothetical bias in stated discrete choice experiments (DCE). The data originate from a field experiment concerning consumer preferences for a novel food product made from cricket flour. Utilising a between-subject design with three treatments, we find significantly higher marginal willingness-to-pay values in hypothetical than in nonhypothetical settings, confirming the presence of hypothetical bias. Comparing this to a hypothetical setting where the ROOR is introduced, we find that the ROOR effectively mitigates hypothetical bias for one attribute and significantly reduces it for the rest of the attributes. PubDate: Tue, 17 Apr 2018 00:00:00 GMT DOI: 10.1093/erae/jby009 Issue No:Vol. 45, No. 5 (2018)
Authors:Van Campenhout B; Pauw K, Minot N. Pages: 783 - 807 Abstract: For developing countries, whose governments are faced with volatile world food prices, the appropriate policy response hinges on who are the likely winners and losers. Therefore, it is necessary to predict the impact of higher commodity prices on different subgroups of society. We compare the results of a method that is popular with policy makers because of its parsimony and ease of interpretation with the results of a more complex and data-intensive general-equilibrium model. Using historical prices between 2008 and 2011 for Uganda, we find that both methods predict high prices benefit poor rural farmers, but more so if a more elaborate model is used. PubDate: Fri, 11 May 2018 00:00:00 GMT DOI: 10.1093/erae/jby013 Issue No:Vol. 45, No. 5 (2018)
Authors:Konrad M; Levin G, Termansen M. Pages: 809 - 829 Abstract: Uptake of energy crop production is slow, even though the returns are competitive with traditional crops, suggesting the existence of barriers to adoption. Danish farm-level data from 2006 to 2013 are used to identify incentive mechanisms and potential barriers to uptake. The results identify land quality, existing farm activities and local markets as important conditions. The influence of farm size and the decisions of neighbouring farmers suggest more subtle barriers: learning costs, uncertainties about future markets and start-up costs. The study thus points towards some of the underlying barriers for the uptake of energy crops and potential new policy directions. PubDate: Tue, 03 Jul 2018 00:00:00 GMT DOI: 10.1093/erae/jby015 Issue No:Vol. 45, No. 5 (2018)
Authors:Yang S; Shumway C. Pages: 831 - 856 Abstract: Asset fixity of inputs is tested under state-contingent production uncertainty. We construct a general dynamic dual model for U.S. agriculture that allows tests for full variability and strict fixity to be performed for each input as well as tests for functional form. We estimate the model using a generalised Box–Cox functional form. Most test results are robust to functional form, but test results of fixity are sensitive for two of four inputs. The generalised Leontief is found to be significantly preferred to the translog and normalised quadratic functional forms for the dynamic model. With this functional form, family labour exhibits strict fixity, while land, capital and hired labour exhibit quasi-fixity. The estimated adjustment rates for the three quasi-fixed inputs are 15, 27 and 47 per cent. Production uncertainty has limited impacts on aggregate investment decisions for quasi-fixed inputs. The insignificant elasticity between state-contingent outputs suggests that an ex post analysis conditional on the realised states of nature is appropriate. PubDate: Wed, 11 Jul 2018 00:00:00 GMT DOI: 10.1093/erae/jby016 Issue No:Vol. 45, No. 5 (2018)
Authors:Luo T; Kostandini G, Jordan J. Pages: 857 - 878 Abstract: This article examines the impact of the Legal Arizona Workers Act (LAWA) on the farm occupation decisions of family labour in agricultural households. This question is studied at the individual level using the difference-in-differences model with the American Community Survey data from 2000 to 2010. We find that LAWA has significantly increased the probability of farm family labourers choosing agricultural occupations by 3–5.5 per cent and the impact is 11 per cent for non-Hispanic farms. This study suggests that stringent immigration laws could change the patterns of family labour use among US farm households. PubDate: Thu, 19 Jul 2018 00:00:00 GMT DOI: 10.1093/erae/jby017 Issue No:Vol. 45, No. 5 (2018)
Hybrid journal (It can contain Open Access articles)
[396 journals]
