renewable natural resource management and use without markets natural resources by their nature are not readily bent to the status of private property efficient resource use is complicated by jurisdictional externalities public goods non use values and beneficiaries spatially separated from the location of resources the task is made more challenging by ecological complexity that obscures cause benefits and effects costs and dramatic time lags between individual actions and subsequent social consequences that together with substantial uncertainty introduce the chance of irreversibilities resource economists have played a major role in the literature on externalities the development of individual transferable quotas non market valuation techniques and common property management

property rights externalities and resource degradation locating the tragedy abstract resource degradation in the third world is largely driven by the demands of farm households for fuelwood and land for agriculture since resources are often controlled through indigenous systems of property the tragedy of the commons has been used to explain resource degradation as a result private property is suggested as a solution to resource degradation a dynamic model capable of examining household incentives for resource use under private and common property is developed results of the model reject the conventional wisdom that gives rise to the presumed optimality of private individual property in natural resources and the correlated indictment of group management regimes

institutional constraints and deforestation an application to mexico 1 introduction in many tropical regions a key factor influencing deforestation is thought to be the lack of effective property rights and other institutional structures controlling access to and use of forests 1 where such institutions exist they limit access to and conversion of forest land thus acting as a deterrent to deforestation in the absence of formal ownership rules traditional common property regimes in some forested regions have also proven to be effective in controlling the open access deforestation problem gibson 2001 larson and bromley 1990 richards 1997 in short formal and informal institutions can influence the process of forest loss by imposing increased costs of conversion on farmers who clear forest land this article is concerned with analyzing the role of formal and informal institutions as constraints on the conversion of forest land to agriculture in developing countries the perspective on institutions adopted here follows the approach of north 1990 who defines institutions as humanly devised constraints that shape human interaction and that affect the performance of the economy by their effect on the costs of exchange and production in analyzing the relation between institutional constraints and the amount of forest land converted for use by smallholders this article makes several contributions first it demonstrates that if institutions raise the costs of land conversion then it is possible to utilize an agricultural household model to formalize the resulting impacts on the amount of converted land used by all farming households moreover the equilibrium level of land cleared will differ under conditions of no institutional constraints that is the pure open access situation compared to c onditions where effective institutions exist to control land conversion because institutions raise the cost of land clearing more land should be converted under pure open access 2 this in turn implies that the existence of institutional constraints prevents the adjustment of the stock of converted land to the long run equilibrium desired by agricultural households which is the amount of land that could be cleared under open access a dynamic panel analysis is therefore employed to test the hypothesis that the presence of institutions to control agricultural conversion can significantly affect deforestation the model of land expansion is applied to the case of mexico in the pre nafta north american free trade agreement reform era 1960 85 during this period the existence of ejido or communal land ownership for the vast majority of forest land meant that strong institutional controls may have restricted the rate of adjustment in the amount of new land converted and thus limited agricultural expansion sarukhan and larson 2001 the analysis also has direct relevance for the post nafta period particularly because the 1992 land reforms sanction changes in the traditional ejido land ownership structure ii a pure open access model of forest land conversion the following model of forest conversion is based on an approach similar to that of cropper et al 1999 lopez 1997 1998a and panayotou and sungsuwan 1994 assume that the economic behavior of all j rural smallholder households in the agricultural sector of a developing country can be summarized by the behavior of a representative jth household although the representative household is utility maximizing it is a price taker in both input and output markets farm and off farm labor of the household are assumed to be perfect substitutes such that the opportunity cost of the household s time i e its wage rate is exogenously determined the household s behavior is therefore recursive in the sense that the production decisions are made first and then the consumption decisions singh et al 1986 in any time period t let the profit function of the representative agricultural household s production decisions be defined as 1 max pi p w w

nonpecuniary benefits to farming implications for supply response to decoupled payments we develop a household model wherein farmers allocate labor to maximize utility from leisure consumption and nonpecuniary benefits from farming the model shows that farmers with decreasing marginal utility of income respond to higher decoupled payments by decreasing off farm labor and increasing farm labor resulting in greater agricultural output we then estimate the difference between farm and off farm returns to labor using data from three nationally representative farm household surveys the finding of a large on farm off farm wage differential provides compelling evidence of substantial nonpecuniary benefits from farming

land clearance and social capital in mountain agro ecosystems the case of opuntia scrubland in ayacucho peru abstract opuntia scrublands are important ecological economic systems in rural andean areas they provide goods for peasants diet and animal feed as well as cochineal insects a highly valued source of dyes land clearance on these scrublands promotes changes in land use from nonproductive wilderness to cochineal and fruit harvest areas grazing lands and fuel wood supply zones here we empirically explore the role of social capital on land clearance based on a case study of the humanga region of ayacucho peru the literature on social capital is showing evidence of the positive effect of social capital on development actions and on environmental conservation in rural areas of developing countries such as participatory forest management here the notion of social capital is captured by the idea that some features of social organization such as networks facilitate coordination and cooperation within the peasant communities that help in managing different economic activities both on and off farm the habilitation of the scrublands in the andean mountain environment could be generating negative externalities as a consequence of altering the vegetation cover such as soil erosion because the benefits arising from land clearance activities are obtained by cochineal collecting households and the negative environmental effects are costs imposed upon noncochineal collectors the social capital associated with scrubland habilitation could be perverse from an agro environmental viewpoint and a revision of some government policies and of some ngos actions for rural development through the promotion of various community networks in this deprived area could be needed

dual labor markets efficiency wages and search this article presents an equilibrium model of a dual labor market firms are assumed to be identical ex ante and dualism arises endogenously the dual labor market outcome is supported by efficiency wage and search considerations firms choose wage effort requirement packages optimally given optimal search and effort choice by workers and vice versa we prove existence and investigate the occurrence and nature of dual labor market equilibria

farm household production efficiency evidence from the gambia this article investigates the economic efficiency of farm households with an application to the gambia the efficiency analysis is conducted not at the farm level but at the household level thus capturing the importance of off farm activities output based measures of technical allocative and scale efficiency are generated using nonparametric measurements an econometric analysis of factors affecting the efficiency indexes is then conducted using a tobit model technical efficiency is fairly high indicating that access to technology is not a severe constraint for most farm households the cost of scale inefficiency is modest allocative inefficiency by contrast is found to be important for the majority of farm households on the basis of the tobit results imperfections in markets for financial capital and nonfarm employment contribute to significant allocative inefficiency

the effect of off farm work on the intensity of agricultural production changes in agricultural production methods have been associated with environmental pressure and a loss of natural habitats this paper explores the extent to which farmer participation in off farm work an increasing phenomenon in most developed countries changes the intensity of agricultural input use focusing in particular on fertilizer and crop protection product use a sample selection model that accounts for both unobserved heterogeneity between farms and the potential simultaneity between farm operations and hours worked off farm is estimated for 2 419 farms in england and wales the econometric evidence indicates that the input intensity of products which have well established links to environmental damage can increase as well as decrease the results suggest that that fertilizer intensity may decline as off farm labor increases while the use of crop protection per hectare increases as off farm work increases

racial discrimination in the labor market theory and empirics we review theories of race discrimination in the labor market taste based models can generate wage and unemployment duration differentials when combined with either random or directed search even when strong prejudice is not widespread but no existing model explains the unemployment rate differential models of statistical discrimination based on differential observability of productivity across races can explain the pattern and magnitudes of wage differentials but do not address employment and unemployment at their current state of development models of statistical discrimination based on rational stereotypes have little empirical content it is plausible that models combining elements of the search models with statistical discrimination could fit the data we suggest possible avenues to be pursued and comment briefly on the implication of existing theory for public policy jel j15 j31 j64 j71

the employment effects of wage discrimination against black men when labor supply curves are upward sloping wage discrimination against black men reduces not only their relative wages but also their relative employment rates using data from the 1984 survey o

the tragedy of the commons in cote d ivoire agriculture empirical evidence and implications for evaluating trade policies expansion of cultivated land diminishes the extent of forestlands or reduces the length of fallow periods and hence reduces the amount of natural vegetation the increase in land under cultivation has a direct output increasing effect at the cost of reducing natural capital and agricultural productivity the evidence for western cote d ivoire is consistent with and provides an explanation for the declining agricultural productivity observed in sub saharan africa during the past few decades this article uses a theoretical model to determine the level of land cultivation that maximizes village income using data from cote d ivoire for 1985 87 an important part of the land is under common property usually at the village level the results show that farmers do not internalize even a small fraction of the external cost of biomass in their land allocation decisions the lack of internalization of the social cost of the biomass resource leads to large income losses at the village level as much as 14 percent of village income these losses are many times larger than the usual estimates for conventional distortions

discrimination in an equilibrium search model i construct an equilibrium search model where some employers have a distaste for hiring minority workers and show that this bias results in economic discrimination against minority workers although only unprejudiced firms hire minority workers minority workers receive lower wages than workers not facing discrimination whenever any employers in the market have a distaste for minority workers one implication of the model is that gender or racial wage differentials understate the utility loss from discrimination in addition the wages of minority workers increase when their proportion increases in the labor market

estimating labor supply of farm households under nonseparability empirical evidence from nepal abstract this paper examines the labor supply of farm households in nepal using a recently developed methodology that accounts for the simultaneity between production and consumption decisions of the households estimates of marginal products of male and female labor or shadow wages are obtained from an agricultural production function an instrumental variable approach is then used to recover the household s structural labor supply from variations in the shadow wages and income as well as other household characteristics the findings reveal that both male and female total labor supply are sensitive to changes in shadow wages and income human capital embodied in education is found to exert a significant positive effect on output but has no statistically significant impact on total labor supply of individuals the results also rejects the existence of efficient labor markets in rural nepal

an optimal path to extinction poverty and resource degradation in the open agrarian economy this paper constructs a model of the open agrarian economy in order to explore the tendency of many such economies to evolve along paths characterised by severe environmental degradation it pays special attention to the importance of commodity prices and the transfer system in determining agricultural activity levels in ecologically delicate systems

environmental externalities in traditional agriculture and the impact of trade liberalization the case of ghana abstract this paper provides a framework for the evaluation of trade policies that explicitly considers the effects of such policies on the environmental resources biomass in doing this we estimate the effects of biomass as a factor of agricultural production and test the hypothesis that farmers efficiently exploit biomass a resource held in common property the main findings are i biomass is an important factor of production in ghanian agriculture ii the biomass resource is exploited beyond the socially optimal level iii a deepening of trade liberalization is likely to induce further losses of biomass and deforestation and iv national income is likely to fall in response to further trade liberalization

search bargaining and employer discrimination this article analyzes becker s 1957 1971 theory of employer discrimination within a search and wage bargaining setting discriminatory firms pay workers who are discriminated against less and apply stricter hiring criteria to these workers the highest profits are realized by firms with a positive discrimination coefficient moreover once ownership and management are separated both highest profits and highest utility can be realized by firms with a positive discrimination coefficient thus market forces like entry or takeovers do not ensure that wage differentials due to employer discrimination disappear

gender discrimination estimation in a search model with matching and bargaining this article develops a search model of the labor market with matching bargaining and employers taste discrimination in which under necessary but standard distributional assumption it is possible to separately identify gender discrimination and unobserved productivity differences the equilibrium shows that both prejudiced and unprejudiced employers wage discriminate maximum likelihood estimates on cps data indicate that half of the employers are prejudiced average female productivity is 6 5 lower and two third of the gender earning differential may be explained by prejudice an affirmative action policy is implemented resulting in a redistribution of welfare from men to women at no cost for employers welfare

estimating labor supply and production decisions of self employed farm producers abstract this paper proposes a model oriented towards integrating farm households production and consumption decisions into a unified theoretical and econometric framework it is argued that in contrast with other forms of economic organization farm households utility and profit maximization decisions are not likely to be independent econometric estimation of a farm household model using canadian data suggests that utility and profit maximizing decisions are not indeed independent and moreover that there are significant gains in explanatory power and efficiency by estimating the consumption and production equations jointly

the benefits and costs of strong patent protection a contribution to the current debate abstract today s conventional wisdom is that strong patent rights are conducive to economic progress yet not long ago students of the patent system took a more nuanced position arguing that often strong patents were not necessary to induce invention and entailed significant economic costs several empirical studies have supported this position however the current advocacy invokes theories of the positive benefits of patents that were repressed in the earlier more negative analyses this essay reviews these theories and the empirical evidence that might bear on them the authors conclude that there is reason for concern that the present movement towards stronger patent protection may hinder rather than stimulate technological and economic progress

supply and demand functions for multiproduct u s cash grain farms biases caused by research and other policies this study presents new estimates of supply and demand elasticities for u s multiproduct cash grain farms and estimates of input and output bias effects caused by public and private crop research extension and farmers schooling the study also shows that the social rate of return to public crop research is large about 62 percent

national wage trends and migration in a chinese village economy a micro level modeling approach based on a composite utility function china s economy is experiencing a regime shift away from a fully elastic supply of labor from a large pool of rural surplus labor and toward a situation of increasing labor scarcity and rising wage rates moreover faster wage increases in the regions of origin of many rural urban migrants are likely to affect the dynamics of inter regional migration these wage trends have implications at the local level in particular in a setting in which migration connects rural communities to the national labor market and in which migration is of high importance for the livelihoods of rural households taking a village perspective this article develops a village computable general equilibrium model to study local impacts of current wage trends in china as a central piece of the model the role of access to migration for household livelihoods is recognized access to migration is linked to household demographics and included in the model through a composite utility function that captures household preferences and disutilities associated with alternative off farm activities simulation results illustrate how households utility considerations affect migration responses to national wage changes statements about possible impacts on village level labor supply land use and agricultural production are made when migration wages and local off farm wages are simulated to increase an overall increase in household and village migration and a higher supply of labor to local off farm labor markets is accompanied by a contraction of farm production although land is reallocated between households with different migration responses total agricultural output declines

links between economic liberalization and rural resource degradation in the developing regions this paper examines evidence of the effects of economic liberalization and globalization on rural resource degradation in developing countries the principal resource effects of concern are processes of land use change leading to forestland conversion degradation and deforestation the main trends in globalization of interest are trade liberalization and economy wide reforms in developing countries that have opened up the agroindustrial sectors thus increasing their export orientation such reforms have clearly spurred agroindustrialization rural development and economic growth but there is also concern that there may be direct and indirect impacts on rural resource degradation the direct impacts may occur as increased agricultural activity leads to conversion of forests and increased land degradation from unsustainable production methods however there may also be indirect effects if agroindustrial development displaces landless near landless and rural poor generally who then migrate to marginal agricultural lands and forest frontier regions this paper explores these direct and indirect effects of globalization and agroindustrialization on rural resource degradation both generally plus through examining case study evidence the paper focuses in particular on the examples of structural adjustment trade liberalization and agricultural development in ghana and maize sector liberalization in mexico under north american free trade agreement nafta

natural resources agriculture and property rights abstract the study explores empirically forest resource and soil quality degradation under different property rights regimes in a subsistence agriculture framework the quantitative analysis is a direct test of the theoretical hypothesis of larson and bromley 1990 larson b bromley d 1990 property rights externalities and resource degradation locating the tragedy journal of development economics 33 2 that common property and private property rights may lead to similar incentives for resource protection a household model is formulated and applied empirically with data from indonesia to test rates of forest biomass and soil quality degradation under private and common property rights results show that the two regimes may equal each other by including bequest value sensitivity analysis is conducted by changing model parameters

embeddedness social epistemology and breakthrough innovation the case of the development of statins abstract radical breakthrough innovations create not only great industrial possibilities but also great social uncertainties when a breakthrough medical technology is discovered the question arises as to whether to accept the possible risks involved or to defer implementing the innovation until more data is available and specifically until others have taken up the innovation and demonstrated both its efficacy its relative safety and market acceptance specifically when a firm discovers a new candidate substance for a first in its class drug how to evaluate the potential risks becomes a key predicament for management this paper focuses on the role of a firm s social networks and national innovation system context in influencing the social epistemology around potential breakthrough innovations through an examination of the processes of drug development related to the same candidate substance in a japanese firm and an american firm we suggest that in addition to organizational capabilities at the corporate level social capital specifically formed under a certain innovation system plays a key role in leading to the successful introduction of breakthrough innovations

a decomposition method on employment and wage discrimination and its application in urban china 2002 2013 abstract labor market discrimination is an important issue in developing countries where path dependent institutions have been dominant while effective institutional arrangements and policies have been hidden by local customs and culture however the existing applications of classical blinder oaxaca decomposition face criticism for their imprecise understanding of the factors affecting institutional discrimination in labor markets as well as for their lack of power in formulating well targeted anti discrimination policies following oaxaca 1973 we propose a new method to decompose the total discrimination index tdi to analyze employment and wage discrimination in the labor markets of developing countries the tdi is decomposed into the employment discrimination index edi and the wage discrimination index wdi then into the underpayment index to majorities upi and the overpayment index to minorities opi we apply this method to the institutional discrimination against rural migrants in china s urban areas using national representative data from 2002 to 2013 we have found that 1 the tdi increased quickly after china entered the wto then dropped after anti discrimination policies were implemented 2 the tdi is mainly determined by the upi while the tdi s fluctuation is mainly determined by the wdi our method provides insights into the changing composition of employment and wage discrimination and their respective labor market outcomes in developing countries as a result appropriate policy measures may be developed accordingly

how valuable is on farm work to farmers in this article we estimate a rural household model that allows specific tastes for working on farm and can fit the data as well as the general model of lopez we use two samples that are matched by individual characteristics and adopt the method for matched surveys proposed by arellano and meghir we replicate using french data the empirical finding of elhorst who reports evidence that implicit wages of on farm family labor are significantly below off farm wages we then provide estimates of the lower bounds for preferences for on farm work for males and females which are significant and positive

globalization local ecosystems and the rural poor summary in this paper we draw upon models from ecology and new institutional economics to examine the various mechanisms through which globalization can lead to loss in resilience of ecosystems and thus increase the vulnerability of poor people who depend on it to illustrate ecological dynamics we examine a semi arid savanna ecosystem that is characterized by nonlinearities and multiple steady states we discuss how traditional knowledge and institutions affect resource use patterns and resilience of such an ecosystem in the absence of trade then we examine the effects of trade liberalization and international technology transfers on institutional and ecological dynamics and consequently on poverty

environmental degradation in developing countries households and the reverse environmental kuznets curve abstract we propose an alternative explanation for the inverted u shape relationship between income and environmental degradation in developing countries production and consumption patterns of rural households are the main cause of environmental damage with a conventional household model we demonstrate that the so called environmental kuznets curve may arise when the restrictive assumption of a set of perfect markets for factors and commodities is relaxed depending on the criterion or indicator that is used to represent environmental pressure however we demonstrate that the reverse may also hold this finding highlights the importance of selecting the appropriate dependent variable in regression analyses

household own consumption and grain marketable surplus in china this paper explores the interrelationships between chinese grain prices farm households income their own consumption of grain and their marketable surplus supply during the rural reform era a gorman polar indirect utility function is employed from which a set of household grain supply and consumption functions are estimated the integrated modelling approach recognizes the interdependence of household supply and consumption decisions a set of compensated elasticities are derived to show the effects of grain prices farm income and full household income on grain consumption and on farm labour supply the impact of own consumption on marketable surplus supply is then gauged by estimating conditional and unconditional price elasticities of marketable surplus supply the results point to the relatively strong positive effect of off farm income on household s own consumption of grain and the negative influence this has had on the marketable surplus of grain in china during the reform era

interactive dynamics between natural and man made assets the impact of external shocks abstract this paper studies a two sector economy in which one of the sectors the commodity sector depends in part on the exploitation of a renewable natural resource and examines the issue in an economy wide context where both natural resources and a man made asset change endogenously over time we show that under an open access resource regime i a resource rich capital poor economy may experience a natural resource curse phase and under certain conditions may even follow a non sustainable path leading to complete natural resource depletion ii a labor inflow results in a higher steady state per capita income with unchanged natural resources though it makes the economy more prone to reach a path that converges to resource collapse iii the introduction of a small import tariff or export tax results in larger steady state natural resources and commodity output and renders the economy less vulnerable to resource collapse we also contrast the open access case with the other polar case of perfect property rights showing that in this case the economy experiences neither a resource curse nor a resource collapse

quasi maximum likelihood estimation of multivariate probit models farm couples labor participation joint estimation of farmers farm and off farm work participation requires a multivariate probit model in which the number of equations is twice the number of household members where there are more than two such equations i suggest a quasi maximum likelihood method which requires only two levels of numerical integration the method maximizes the use of sample information given this numerical feasibility condition it is used for estimating a joint participation model of farm couples farm and off farm work the model yields conclusions about comparative advantages of men and women in farm off farm and housework which cannot be obtained with a more limited setup

valuing soil conservation benefits of agroforestry contour hedgerows in the eastern visayas philippines abstract trees can be considered as investments made by economic agents to prevent depreciation of natural assets such as stocks of top soil and water in agroforestry systems farmers use trees in this manner by deliberately combining them with agricultural crops on the same unit of land although advocates of agroforestry have asserted that soil conservation is one of its primary benefits empirical estimates of these benefits have been lacking due to temporal and spatial complexity of agroforestry systems and the nonmarket aspect of soil capital assets this study designs and applies a bio economic framework for valuing the soil conservation benefits of agroforestry the framework is tested with econometric analysis of data from surveys of households in eastern visayas philippines where usaid government of philippines introduced contour hedgerow agroforestry in 1983 by constructing a weighted soil quality index that also incorporates measures of soil fertility texture and color in addition to erosion we extend previous economic studies of soil resources this index is regressed on a variety of farming and site specific bio physical variables next we use a cobb douglas profit function to directly relate agricultural profits and soil quality thus the value of soil conservation is measured as a quasi rent differential or the share of producer surplus associated with a change in soil quality because this framework assumes the existence of markets the assumption is tested by analysing the statistical significance of consumption side variables e g number of household members on production side variables e g profits instrumental variables are used to handle the endogeneity of the soil index in the profit equation seemingly unrelated regression sur analysis is used to accommodate correlation of errors across the soil and profit equations regression results reveal the importance of agroforestry intensity private ownership land fragmentation and familiarity with soil conservation as positive covariates of soil quality analysis of production data indicate the importance of market prices education farming experience farm size topography and soil quality as positive covariates of household profits investments in agroforestry to improve or maintain soil capital can increased annual agricultural profits by us 53 for the typical household which is 6 of total income however there are significant up front costs given that small farmers in tropical uplands are important players in the management of deteriorating soil and forest resources policy makers may want to consider supporting farmers in the early years of agroforestry adoption

the tragedy of the commons in cote d lvoire agriculture expansion of cultivated land diminishes the extent of forestlands or reduces the length of fallow periods and hence reduces the amount of natural vegetation the increase in land under cultivation has a direct output increasing effect at the cost of reducing natural capital and agricultural productivity the evidence for western cote d lvoire is consistent with and provides an explanation for the declining agricultural productivity observed in sub saharan africa during the past few decades this article uses a theoretical model to determine the level of land cultivation that maximizes village income using data from cote d lvoire for 1985 87 an important part of the land is under common property usually at the village level the results show that farmers do not internalize even a small fraction of the external cost of biomass in their land allocation decisions the lack of internalization of the social cost of the biomass resource leads to large income losses at the village level as much as 14 perce

peasant household behaviour with missing markets some paradoxes explained a model of peasant household behavior under varying degrees of household specific food and labor market failures is constructed to show that these structural features can explain several well known patterns of peasant response which have often been attributed to peculiar motives presumed specific to peasants the model explains sluggish response to cash crops prices and high instability in perceived food and labor scarcities the key role of manufactured consumer goods prices in stimulating peasants effort in cash crops production the effectiveness of taxation as opposed to incentives in stimulating cash crops production and the key role of technological change in food production to enhance cash crop production results are obtained analytically in the case of one market failure and by numerical simulation with more than one

considering the effect of biomass energy consumption on economic growth fresh evidence from brics region abstract this paper investigates the relationship between biomass energy consumption and economic growth by incorporating capital and trade openness in production function for the case of brics countries in doing so unit root and cointegration tests have been used in order to examine unit root properties and long run relationship between the series for the period of 1991q1 2015q4 the results confirm the presence of long run equilibrium relationship between the variables moreover biomass energy consumption stimulates economic growth capital increments economic growth and trade openness spurs economic growth the feedback effect exists between biomass energy consumption and economic growth trade openness granger causes economic growth capital and biomass energy consumption the policy to adopt biomass as the primary source of renewable energy helps brics countries to achieve sustainable development goal in both short run and long run however the key innovative point of this study is to establish the sign for granger causality test

the effects of government spending on deforestation due to agricultural land expansion and co2 related emissions this paper examines the effect of changes in government spending level and composition on deforestation due to agricultural land expansion and related carbon dioxide emissions our theoretical model shows an unintended consequence from increased government spending and widening social safety nets in developing countries where agricultural land expansion significantly affects forest cover there is an increase in deforestation and carbon dioxide emissions from land use change our empirical tests show that an increase in total government spending significantly increases forest land clearing for agricultural production in the short run leading to more carbon dioxide emissions however there is no long run statistically significant effect on the steady state forest cover and carbon dioxide emissions

making the commons work conservation and cooperation in ireland commonage represents land held under common property that incorporates a system of local cooperative arrangements and rules to conserve and manage the irish uplands we analyze the institutional and economic factors that influence the behavior of commonage farmers under a common property regime using a recursive bivariate probit model results show that 1 cooperation has a positive and important impact on commonage conservation 2 agricultural policies by way of livestock premia increase the level of degradation while 3 farm financial support through agrienvironment measures positively affects commonage conservation and encourages cooperation between farmers

agricultural productivity and soil carbon dynamics a bioeconomic model we examine the dynamic management of a soil resource the issue at the core of both environmental and development challenges in developing countries our theoretical framework extends the traditional bioeconomic model of renewable resources to soil carbon management and investigates the effects of changes in agricultural practices on farmers natural resource base and livelihoods we parameterize the model using an eight year panel data set from an agronomic experiment and data from household and market surveys in the western kenyan highlands the optimal maize yields and soil carbon stocks are higher than those observed in the region this divergence is partly explained by farmers heterogeneous time preferences with the implied discount rates of 5 to 25 information barriers and market imperfections the steady state shadow price for soil carbon ranges from 95 mg to 168 mg indicating a significant opportunity cost for soil mismanagement

measuring regional diversification of environmental externalities in agriculture and the effectiveness of their reduction by eu agri environmental programs in poland abstract the problem of externalities is an important aspect of contemporary discussion about the directions of agricultural development and agricultural policy nonetheless measuring agri environmental externalities is a difficult task and rarely undertaken in scientific research in our research we have constructed a synthetic indicator that allows measuring agri environmental externalities at the regional level taking into account both positive and negative effects at the same time we also studied the extent to which our synthetic indicator can be used to inform about the effectiveness of subsidies paid to farmers in the european union under agri environmental programs in reduction of externalities generated by agriculture we concluded that the use of subsidies under agri environmental programs has a positive impact on reducing externalities generated by agricultural production measured by our indicator

should governments stop subsidies to private goods evidence from rural latin america abstract this paper empirically documents the effects of subsidizing private goods to the detriment of the government s supply of public goods we use a new data set from the rural sector in fifteen latin american countries over the period 1985 2001 collected using a methodology that allows us to separate government subsidies to private goods from expenditures in the provision of public goods the econometric evidence shows that the government s decision to subsidize either private or public goods has dramatic consequences for economic development reducing the share of subsidies to private goods or equivalently increasing the share of public goods in the government s budget has ceteris paribus a large and significant positive impact on rural per capita income reduces certain undesirable environmental effects associated with output expansion and contributes to poverty reduction

are agricultural markets more developed around cities testing for urban heterogeneity in separability in tanzania abstract a key question for policymakers concerned about feeding sub saharan africa s ssa rapidly growing cities is whether or not nearby farms benefit from improved agricultural markets evidence from case studies and agricultural location theory suggest so but urban heterogeneity has not yet been found in a common economic test of functioning agricultural markets the separability result the test is based on a key insight of the agricultural household model which finds that a farm s profit should be maximized independently from household utility given perfect factor markets i e separability but not so if the household faces at least two market failures i e non separability in this paper i test for geographic heterogeneity in separability between rural peri urban and urban districts using 2014 15 data from the world bank s living standards measurement study and integrated surveys on agriculture lsms isa from tanzania i find strong evidence that the correlation between pre harvest labor demand and household size implying non separability in rural areas is significantly weaker in three of tanzania s five largest cities dar es salaam arusha and mbeya given certain assumptions this can be interpreted as evidence of increased agricultural market functionality around these cities relative to rural areas overall these results contribute to the debate on how to achieve urban food security in ssa and give some validity to agricultural location theory and the separability test as tools to help policymakers characterize the nature of agricultural factor markets

discrimination nepotism and long run wage differentials the wage discrimination model developed by becker has been criticized for predicting that competitive forces will lead to the disappearance of racial discrimination in the long run we have reformulated the model in terms of nepotism toward white workers rather than discrimination against black workers in this new framework both nepotistic and taste neutral firms are expected to survive the competitive struggle in the long run therefore the new framework is consistent with long run as well as short run racial wage differentials

peasants against private property rights a review of the literature land is the main if not the only asset for a majority of people in developing countries the definition and allocation of rights over land are thus naturally essential aspects of individuals daily lives as well as critical determinants of social and economic development the privatization of land rights has long been seen as a necessary process enhancing both efficiency and equity however privatized land rights have not always emerged endogenously while exogenously driven programs of land privatization have not always been successful nor popular this has raised questions about the expected benefits of land rights privatization this paper aims at summarizing the main arguments and studies both theoretical and empirical on this issue with a specific focus on the factors that can make privatization inefficient or detrimental for the most concerned individuals

on price liberalization poverty and shifting cultivation an example from mexico a bioeconomic model is used to explore the potential impacts of price policies on land use under shifting cultivation the model is calibrated with household level and agroecological data from yucatan mexico besides the direct effect of the liberalization of maize prices the results indicate that changes in real wages in post nafta mexico may have non expected effects on the labor diversification and land use decisions of households further it is shown that income may well be inversely related to both the suboptimal level of forest clearing and the state of soil fertility albeit in a non monotonic u shape way

household composition labor markets and labor demand testing for separation in agricultural household models this paper tests the separation of farm labor supply and labor demand decisions using the observation that household composition is an important determinant of farm labor use with nonseparation after assessing the conditions under which the test has power against several alternatives an empirical model is developed to test the proposition that farm employment is independent of family composition the model is estimated on a data set from rural java the null hypothesis that farm labor allocation decisions are independent of household structure is not rejected the results are robust to different specifications of the labor demand function copyright 1992 by the econometric society

preferences in a communal economic system a voluntary communal economic system differs from most types of economic organizations in that its members prefer to carry out certain activities collecti vely and significant production and consumption activities take plac e within it communal systems are analytically modeled in the article as household production units or centrally planned economies the mo del is employed to evaluate the source of changes in consumption of i sraeli kibbutzim between 1955 and 1965 by focusing on changes in pric es technologies resources and preferences evaluating the stability of preferences hypothesis raised by g stigler and g becker 1977 copyright 1987 by the review of economic studies limited

agricultural intensification common property resources and the farm household this paper evaluates the impact of agricultural price and intensification policies for common property resources and welfare of rural communities in developing countries in doing so we develop a new model for the farm household that has analytical advantages over the traditional one and that has significant potential for empirical application the major findings are technical assistance that increase productivity of land intensive agricultural outputs cereals livestock etc cause degradation of the communal resources and may cause immiserization policies that increase the prices of these goods cause identical effects by contrast similar policies applied to labor intensive outputs vegetables tubers etc contribute to improve the common resources and to increase the welfare of the rural communities

dual economic growth in poor tropical areas abstract we consider a two sector model a modern sector and an extensive one with the extensive sector being highly dependent on natural vegetation cover as a factor of production in the extensive sector land tenure is not well defined we show that taxing the extensive sector as a whole and land intensive crops relative to labor intensive crops increases real income consumption in the short run however necessarily falls the cost of the adjustment is paid mostly by the poor when the extensive sector as a whole is taxed the distributional consequences of taxing the land intensive outputs however are ambiguous

trade policies economic growth and the direct causes of deforestation by ramon lopez gregmar i galinato please send correspondence to ramon lopez 2200 symons hall university of maryland college park md 20742 email rlopez arec umd edu tel 301 405 1281 fax 301 314 9091 gregmar i galinato 2200 symons hall university of maryland college park md 20742 email ggalinato arec umd edu tel 301 405 0477 fax 301 314 9091

the gender gap in agricultural productivity the role of market imperfections abstractthis paper hypothesises that labour and credit market imperfections by discouraging off farm income generating activities and restricting access to inputs respectively affect female farm productivity more deeply than male productivity the paper develops a theoretical model which decomposes the contribution of various market imperfections to the gender productivity gap empirically we show that agricultural labour productivity is on average 44 per cent lower on female headed plots than on those managed by male heads 34 per cent of this gap is explained by differences in labour market access and 29 per cent by differences in credit access

employers discriminatory behavior and the estimation of wage discrimination this paper considers the linkage of empirical estimates of wage discrimination between two groups introduced by oaxaca 1973 to a theoretical model of employers discriminatory behavior it is shown that conditional on different assumptions about employers discriminatory tastes oaxaca s estimators of wage discrimination can be derived that the approach is more generally useful is demonstrated by deriving an alternative estimator of wage discrimination based on the assumption that within each type of labor e g unskilled skilled the utility function capturing employers discriminatory tastes is homogeneous of degree zero with respect to labor inputs from each of the two groups the estimators are compared empirically in an application to male female wage differentials

virtual land use and agricultural trade estimating environmental and socio economic impacts abstract liberalization has caused an increase in the global trade of goods and services in particular the value and physical volume of agricultural goods traded have largely increased as the environmental and social consequences of trade are complex they are rarely included in the national and international agricultural policies one reason is that there is a lack of concepts and methods for assessing the environmental and social impacts of trade policies in this paper we develop a method for quantifying and assessing the land use hidden in the export and import of agricultural goods for the case of switzerland for our analysis we focus on arable crops the first methodological step of our research illustrates the spatial relationship of switzerland with countries all over the world through the import and export of land use for arable crops the second step links this spatial dimension with a qualitative assessment of the environmental and socio economic impacts of agricultural land use we applied the method to the case of wheat cultivation within switzerland and import to switzerland the major problem we were confronted with was the availability of data which had both to be reliable and available for the countries wheat is imported from the results show that the calculation of land use is credible in spite of the problems related with data availability the assessment results for each indicator are in agreement with the current situation in the respective countries in addition the aggregation seems to accurately reflect the countries agricultural polices the developed method is used to estimate the overall environmental and socio economic impacts of an increase in wheat imports to switzerland we argue that this method could be applied for anticipating potential impacts of trade agreements still further research is required for fine tuning of the utility functions including a weighting procedure in the aggregation procedure for practical applications important aspects like water shortage should enlarge our limited set of indicators in addition the average impact on a country level was assessed to refine that different agricultural systems ranging from intensive to extensive to organic should be considered beyond our scope was to analyze impacts due to other life cycle stages than the agricultural production for informed decision however information on the whole life cycle of agricultural products is required

on limiting or encouraging rivalry in technical progress the effect of patent scope decisions abstract this essay is on the effects of the scope of a patent e g how broad its allowed claims on subsequent inventing in a field it is argued that this depends on the topography of technical advance in a field in particular on how inventions are linked to each other and in the extent to which rapid technical advance requires a diversity of actors and minds as contrasted with being facilitated by express coordination of inventive activity technical advance is examined in several different fields with a focus on how patents influenced the pace and quality of development the authors conclude that allowing and enforcing broad patent claims tends to hinder technical progress

modeling farm households price responses in the presence of transaction costs and heterogeneity in labor markets we develop a farm household model to analyze price responses of farm households this model incorporates various types of transaction costs as well as labor heterogeneity nonproportional variable transaction costs or labor heterogeneity imply that production and consumption decisions become nonseparable even when the household buys or sells labor an empirical model is estimated using data from midwest poland the results show that nonproportional variable transaction costs and labor heterogeneity significantly influence household behavior not all price elasticities however change significantly if these are neglected

debt poverty and resource management in a rural smallholder economy this paper develops a model to capture the key features of poverty credit constraints and resource management faced by poor rural households we assume that due to the existence of asymmetric information and moral hazard the household faces an increasing cost of credit as its debt equity ratio rises a household exploiting a natural resource may fall into a poverty trap but only if it is unable to afford the increasing borrowing costs implied by increasing debt to allow it to avoid such a trap or if it discounts future utility so much that a balanced growth path cannot be financed at any level of long run borrowing in contrast along an optimal balanced growth path the household s asset wealth purchased inputs resource stock and consumption increase at the same constant rate however over the long run there may be carrying capacity limits that prevent the resource from improving further the household may then direct its savings to accumulating financial assets and eventually under certain conditions may become a net creditor with resource exploitation becoming a less and less important source of its income

the policy roots of socioeconomic stagnation and environmental implosion latin america 1950 2000 abstract the persistence of growth and its equity and environmental effects heavily depend on the composition of asset investments physical human and natural capital are the key assets behind the development process market failures tend to affect the accumulation of such assets asymmetrically leading to underinvestment in human and natural capital public policy in latin america has generally exacerbated such market failures by promoting physical capital investments using massive public subsidies instead of relying on the expansion of public and semipublic assets that complement physical capital the result economic stagnation deep social inequities and environmental destruction

the national system of innovation in historical perspective contrary to some recent work on so called globalisation this paper argues that national and regional systems of innovation remain an essential domain of economic analysis their importance derives from the networks of relationships which are necessary for any firm to innovate whilst external international connections are certainly of growing importance the influence of the national education system industrial relations technical and scientific institutions government policies cul tural traditions and many other national institutions is fundamental the historical examples of germany japan and the former ussr illustrate this point as well as the more recent contrast between east asian and latin american countries introduction the national system of friedrich list according to this author s recollections the first person to use the expression national system of innovation was bengt ake lundvall and he is also the editor of a highly original and thought provoking book 1992 on this subject however as he and his colleagues would be the first to agree and as lundvall himself points out the idea actually goes back at least to friedrich list s conception of the national system of political economy 1841 which might just as well have been called the national system of innovation the main concern of list was with the problem of germany overtaking england and for underdeveloped countries as germany then was in relation to england he advocated not only protection of infant industries but a broad range of policies designed to accelerate or to make possible industrialisation and economic growth most of these policies were concerned with learning about new technology and applying it the racialist and colonialist overtones of the book were in strong contrast to the inter nationalist cosmopolitan approach of the classical free trade economists and list s belief that holland and denmark should join the german bund and acquire german nationality because of their descent and whole character reads somewhat strangely in the european community of today nevertheless despite these unattractive features of his outlook he clearly anticipated many contemporary theories after reviewing the changing ideas of economists about development in the years since the second world war the world bank 1991 concludes that it is intangible investment in knowledge accumulation which is decisive rather than physical capital investment as was at one time believed pages 33 35 the report cites the new growth theory

deforestation property rights and international trade deforestation primarily affects developing countries most developing countries share two characteristics 1 trade liberalization reforms in the last two decades and 2 weak property rights and limited rule of law this paper investigates this second best world first in a stylized model in which trade distortions are eliminated in an economy whose natural resources are subject to open access second empirically in an estimation exercise that disentangles the direct effect of trade on deforestation rates and an indirect effect through its interaction with ownership security in accordance with the theory the results show that only the indirect effect is significant

moving toward markets labor allocation in rural china abstract china s economic reforms have brought rapid growth in rural off farm employment raising questions about the assumption that rural china is labor surplus and has poorly functioning factor markets we investigate this by testing for separability between household labor demand and supply using panel data we find that separability is rejected overall indicating that factor markets remain underdeveloped nonseparability however is associated with labor surplus in some areas and labor shortage in others moreover separability holds where substantial employment opportunities exist in the wider township suggesting that such employment promotes competitive allocation within villages as well as the inter village movement of resources

explaining a miracle intensification and the transition towards sustainable small scale agriculture in dryland machakos and kitui districts kenya abstract the transition to sustainable agriculture in tropical small scale farming has been discussed intensively since boserup published her theory on the role of population pressure as a leading factor bosemp s work challenged the malthusian approach to rural transformation recent evidence supports the boserup theory as applied to machakos district kenya this paper aims to establish how much of terracing is directly explained by population density increases as opposed to other district and village level variables by using a retrospective multivariate analysis in machakos and kitui districts kenya the findings suggest that variables such as the distance to major urban markets and the windfall profits from the coffee boom in the late 1970s are at least as important in explaining the investment in the quality of land in machakos and kitui districts

deprived land use intensification in shifting cultivation the population pressure hypothesis revisited this article provides a theoretical framework based on optimal control theory to analyze farm households land use intensification decisions in forest based shifting cultivation slash and burn agroecosystems the main results from the analysis generally coincide with the population pressure hypothesis pph as an important driver of soil degradation due to the so called fallow crisis or deprived land use intensification in shifting cultivation however the model also shows from a supply perspective that such a vicious circle of lower yields and greater forest land clearing may be avoided when the production elasticity of on farm labor outweighs the elasticity of substitution between farm labor and soil fertility furthermore using data from shifting cultivating households from yucatan mexico we calibrate the effect of changes in population density the numerical analysis suggests that by contrast to better off households when population density increases poorer shifting cultivating households optimal labor allocation strategy is to further extensify land use by clearing more forest in the village common property land or ejido land

consumer discrimination and self employment self employment rates and incomes differ significantly by race we show that these differentials arise in markets with consumer discrimination and incomplete information about the price of the good and the race of the seller equilibrium income distributions have two properties mean black incomes are lower than mean white incomes and the returns to ability are lower for black than for white sellers able blacks therefore are less likely to self select into the self employment sector than able whites using the 1980 census data we find that observed racial differences in the self employment income distributions are consistent with the theoretical predictions

on the decomposition of wage differentials the often used method for decomposing wage differentials into human capital and discrimination components is reformulated so that both t he disadvantage or cost discrimination it imposes on a black or minority wage earner and the advantage or benefit it bestows on a white or majority wage earner can be estimated copyright 1988 by mit press

a model of shifting cultivation can soil conservation reduce deforestation shifting cultivators manage soil not only by adjusting soil use on already cleared lands as in continuous cultivation but also by clearing forests to obtain new fertile soils this study examines the crucial link between on farm soil conservation and deforestation in shifting cultivation by modeling forest clearing as an investment in soil for a private farmer more generally by doing so the study attempts to integrate deforestation and soil conservation models which have been separately developed in the literature our policy goal is to arrest tropical deforestation as destruction of global commons caused by land degradation in shifting cultivation while improving the well being of poor shifting cultivators our integrated approach enables joint policy analyses of deforestation and land degradation three welfare enhancing policies are considered the first is agricultural and nonagricultural subsidies affecting farm and nonfarm income opportunities the second is fiscal and tenure policies affecting discount rates our question is whether the link between forest clearing and soil fertility alters the outcomes of these two standard macroeconomic policies commonly found in the literature the third policy or program is various soil conservation measures affecting soil regeneration and erosivity on already cleared lands this article examines a very important question which has received little attention in previous theoretical works can soil conservation reduce deforestation this study confirms anti deforestation effects of the promotion of nonfarming activities a common and often emphasized finding in previous works among shifting cultivators more importantly it also demonstrates that improving various soil conservation measures not only discourages forest clearing among shifting cultivators but also tends to have greater effects on forest protection than promoting nonfarming activities contrarily agricultural price subsidy or technological progress gives rise to the opposite outcome and lowering the farmer s discount rate or improving tenure security encourages him her to clear more forests just to accumulate soil

contingency in innovation and the role of national systems taxol and taxotere in the usa and france abstract a very rich collection of archival material is used to compare two anticancer drugs commercialised by multinationals collaborating with public sector research one in the usa and one in france the framework of national innovation systems is used to compare the innovative environments for each development different institutional structures research programmes financing industry academic government relationships environmental concern and intellectual property regimes the empirical work was able to bring out the nuances and subtleties of each environment the way in which innovation took place in practice and some striking differences from what stereotypical accounts of innovation in each country would have suggested

a note on soil depth failing markets and agricultural pricing comment abstract bulte and van soest bulte e van soest d 1999 a note on soil depth failing markets and agricultural pricing journal of development economics 58 245 254 argue that higher agricultural output prices result in greater soil conservation when labor markets function well but have ambiguous effects when labor markets are absent the latter result is not attributable to labor market failure but rather occurs whenever labor supply is less than perfectly elastic consistent with the more general model presented here empirical evidence from a number of developing countries suggests that well functioning labor markets are associated with decreases in investment in soils

trade tragedy and the commons we develop a theory of resource management where the degree to which coun tries escape the tragedy of the commons and hence the de facto property rights regime is endogenously determined three forces determine success or failure in resource management the regulator s enforcement power the extent of har vesting capacity and the ability of the resource to generate competitive returns without being extinguished the model can explain heterogeneity across coun tries and resources in the effectiveness of resource management and it predicts that changes in prices population and technology can cause transitions to better or worse management regimes jel p14 q21 q22 q23 q32 many of the world s major renewable resource stocks are in a state of decline this is true for capture fisheries for forests in developing countries and for many measures of the biosphere s health other renewable resources including many species of wildlife marine mammals and coral reefs are also under threat while poverty and government corruption are surely respon sible for some of this record particular emphasis is often placed on the potentially damaging role played by international trade this emphasis is not surprising given that natural resource products are a key export for much of the developing world and property rights over renewable resources are both difficult to define and poorly enforced but property rights are not an immutable country characteristic such as weather mineral deposits or topography they are instead market institutions developed to facilitate transactions and protect scarce resources consequently changes in prices technology and other effects of market integration may alter the de facto property rights regime and lead to impacts quite dif ferent from those predicted by existing analyses the purpose of this paper is to examine renew able resource use within a framework where the enforcement of property rights and hence the efficacy of resource management is endogenously determined we develop a theory where an existing government regulates the use of a renewable resource by a set of agents who have a right to harvest the resource could be a fishery forest stock aquifer etc and we assume it is local and therefore contained within one country the govern ment sets rules limiting harvests but agents may cheat on these allocations and risk punishment property rights are endogenous in this framework because the government must account for agents incentive to cheat as a result the effective protection for the resource or what we refer to as the de facto property rights regime may be far from perfect even though property rights would be perfectly enforced if there was no monitoring problem

an equilibrium search model with coworker discrimination this article analyzes the effect of coworker discrimination on wage and unemployment differentials between males and females using a search model an increase in female participation drives up the wage offer to female workers and raises female employment moreover an increase in the degree of discrimination by males results in gains to them in terms of higher wages and lower unemployment but results in losses to females in terms of lower wages and higher unemployment the benefit to males provides an explanation for the persistence of discrimination