a joint product analysis of the adoption of modern cereal varieties in developing countries semi dwarf wheat varieties have been slow to diffuse in some regions despite their superior grain yield we analyze varietal differences in yields of the joint products of grain and straw the decision to adopt new varieties and nitrogen demand the low straw yield of semi dwarf varieties under low input conditions is shown to be a plausible explanation for their slow adoption in some regions first generation modern varieties induced a large increase in the derived demand for nitrogen but subsequent varietal development appears to have had little impact on nitrogen demand

technology adoption impact and extension in developing countries agriculture a review of the recent literature given the stagnant agricultural productivity and persistent food insecurity in low income countries notably in sub saharan africa ssa there has been continued interest in the adoption of new technology and its impact on productivity in these regions interestingly there are signs of green revolution in maize and rice in ssa reflected in sharply increasing yield trends in advanced regions to increase crop yields and sustain yield gains recent case studies of technology adoption unanimously recommend the adoption of integrated farm management systems particularly in ssa on the other hand since the 2010s there have been increasing numbers of studies on social network or farmer to farmer technology extension these studies explore more efficient extension systems than traditional public sector extension approaches this article reviews both recent case studies of technology adoption and its productivity impacts as well as studies on agricultural extension to identify common findings shortcomings and major remaining issues

diversification and livelihood sustainability in a semi arid environment a case study from southern ethiopia abstract this paper examines the recently growing adoption of non pastoral livelihood strategies among the borana pastoralists in southern ethiopia a large portion of the current non pastoral participation is in petty and natural resource based activities pastoral and crop production functions are estimated using the cobb douglas model to analyse the economic rationale behind the growing pastoralist shift to cultivation and other non pastoral activities the low marginal return to labour in traditional pastoralism suggests the existence of surplus labour that can gainfully be transferred to non pastoral activities an examination of the pastoralist activity choices reveals that the younger households with literacy and more exposure to the exchange system display a more diversified income portfolio preference the findings underscore the importance of human capital investment and related support services for improving the pastoralist capacity to manage risk through welfare enhancing diversified income po

measurement errors in agricultural data and their implications on marginal returns to modern agricultural inputs the low uptake of modern agricultural technologies in sub saharan african countries has encouraged researchers to revisit the returns to or profitability of these agricultural inputs a related strand of literature is exploring the allocative efficiency of these factors of production in african agriculture however all these studies rely on self reported agricultural data which are prone to nonclassical measurement errors the errors in these data are correlated with the true values of variables of interest in this article we investigate the implication of measurement errors in self reported agricultural input and production data on marginal returns to these modern agricultural inputs we consider a generic two sided measurement error problem where both production and inputs can be measured with error and these errors can be correlated we employ both self reported and objective measures of production and plot size to compute output elasticities under these alternative measurement scenarios we find that using self reported production and plot size overestimates output elasticities and hence marginal returns to modern agricultural inputs including chemical fertilizer and improved seed these results are noteworthy in terms of informing conventional technology diffusion strategies as well as in view of revisiting existing presumptions about the profitability of modern agricultural inputs

stuck on stubble the non market value of agricultural byproducts for diversified farmers in morocco diversified agricultural households often use byproducts of one activity as inputs for another for crop livestock farmers cereal production provides grain and crop residue where the latter can be used as livestock feed to properly assess the cost of introducing new technologies into such systems one must value the implicit cost of byproducts which is made difficult by missing byproduct markets we estimate the shadow value of non market crop stubble using household data from morocco and find that stubble accounts for around one quarter of the value of cereal production in a normal rainfall year and three quarters in a drought year

unraveling the effect of targeted input subsidies on dietary diversity in household consumption and child nutrition the case of malawi abstract malawi s farm input subsidy program fisp has generated significant attention with several studies showing an increase in maize production since the inception of the program in 2005 but stagnating poverty levels in this study i examine whether and how fisp has affected dietary diversity in household food consumption and child nutrition i find that children under the age of five living in households that received a voucher between 2008 and 2013 for the purchase of fertilizer have a statistically significantly higher at the 1 level weight for age weight for length height and body mass index than children living in non recipient households i also find that households having received a voucher consume cereals nuts vegetables meats and fruits more frequently than non recipient households the analysis uses two stage least squares to account for the endogeneity of selection into the fertilizer subsidy program i test the robustness of these results using child fixed effects the results indicate that past studies evaluating fisp failing to account for the positive gains in child nutrition and household food consumption diversity may be underestimating its benefits

filling a gap in traditional transaction cost economics towards transaction benefits based analysis abstract this paper analyzes dyadic partnership formation between asymmetric buyers and specialized suppliers in the first part of the paper different economics of organization based approaches are evaluated their basic implications concerning the rise of partnerships are derived in the second part a dynamized transaction cost and benefit model is introduced to analyze the most critical elements of a typical partnership decision the final part is based on insights from practice and in depth interviews among 12 specialized suppliers and their four large incumbent partners in the information and telecommunications industry

input subsidy programs in sub saharan africa a synthesis of recent evidence input subsidy programs have once again become a major plank of agricultural development strategies in africa ten african governments spend roughly us 1 billion annually on input subsidy programs isps amounting to 28 6 of their public expenditures on agriculture this article reviews the microlevel evidence on isps undertaken since the mid 2000s we examine the characteristics of subsidy beneficiaries crop response rates to fertilizer application and their influence on the performance of subsidy programs the impacts of subsidy programs on national fertilizer use and the development of commercial input distribution systems and finally the impact of isps on food price levels and poverty rates the weight of the evidence indicates that the costs of the programs generally outweigh their benefits findings from other developing areas with a higher proportion of crop area under irrigation and with lower fertilizer prices factors that should provide higher returns to fertilizer subsidies than in africa indicate that at least a partial reallocation of expenditures from fertilizer subsidies to r d and infrastructure would provide higher returns to agricultural growth and poverty reduction however because isps enable governments to demonstrate tangible support to constituents they are likely to remain on the african landscape for the foreseeable future hence the study identifies ways in which benefits can be enhanced through changes in implementation modalities and complementary investments within a holistic agricultural intensification strategy among the most important of these are efforts to reduce the crowding out of commercial fertilizer distribution systems and programs to improve soil fertility to enable farmers to use fertilizer more efficiently the challenges associated with achieving these gains are likely to be formidable

resources transactions and rents managing value through interfirm collaborative relationships this paper offers a theoretical explanation for why interfirm collaborations form yet fail and further suggests how firms might manage them for a more positive outcome based on a perspective of value we explain how a more inclusive and integrative perspective one which combines elements from transaction costs and resource based theory provides more robust insight into collaboration formation management and instability in doing so we differentiate rent yielding firm specific assets at the core of the resource based view from the transaction specific assets at the core of transaction cost theory the paper makes a crucial distinction between the potential value attainable through collaborations and its actual realization the crux of our argument is that firms enter into collaborative relationships because these are expected to yield superior value relative to alternate organizational forms in certain situations offering potentially synergistic combinations of complementary resources and capabilities yet such relationships are frequently prone to failure because the partner firms tend not to recognize ex ante the nature and extent of transaction specific investment that is required in the collaborative relationship to attain these synergies in our argument critically the relationship between organizations is seen not simply as a governance structure of a hybrid nature but more importantly as a productive resource for value creation and realization in this light transaction specific investment in what we term relational specificity becomes imperative in the search for value we explain why the transaction costs incurred in the exchange of resources are not independent of the nature of resources to be transacted and similarly why the returns realized from these resources are not independent of the relationship and transaction specific expenditures incurred in effectively combining them and maintaining the combination the interdependence between the two mediated by the quality of the relationship has direct implications for the earning of rents through collaborations these relationship specific expenditures can be of an internally generated nature endogenous to the alliance form itself and need not exceed alternative forms while the associated benefits have the capacity to potentially exceed the alternatives this translates into potentially superior value the paper contributes in three key related ways a the explicit recognition of the relationship as a value bearing asset embedded in a larger and endogenous institutional context namely a system of resource relationships both intraorganizational and inter organizational among partner firms and the collaboration b the recognition of the evolving relationship between production and exchange which at the level of the collaboration is directly dependent on the nature evolution and dynamics of the relationship among the parties to the transaction and c the provision of a nontrust explanation for why firms might knowingly forego opportunities to take advantage of their partners drawing from this the paper occasions a a shift in focus from the form to the process of governance which has direct implications for value creation and realization and b a shift in the primary identity of transaction specific and relationship specific expenditures from cost to investment in future value

the economics of poverty traps and persistent poverty an asset based approach abstract longitudinal data on household living standards open the way to a deeper analysis of the nature and extent of poverty while a number of studies have exploited this type of data to distinguish transitory from more chronic forms of income or expenditure poverty this paper develops an asset based approach to poverty analysis that makes it possible to distinguish deep rooted persistent structural poverty from poverty that passes naturally with time due to systemic growth processes drawing on the economic theory of poverty traps and bifurcated accumulation strategies this paper briefly discusses some feasible estimation strategies for empirically identifying poverty traps and long term persistent structural poverty as well as relevant extensions of the popular foster greer thorbecke class of poverty measures the paper closes with reflections on how asset based poverty can be used to underwrite the design of persistent poverty reduction strategies

agriculture in africa telling myths from facts a synthesis stylized facts drive research agendas and policy debates yet robust stylized facts are hard to come by and when available often outdated in a special issue of food policy 12 papers revisit conventional wisdom on african agriculture and its farmers livelihoods using nationally representative surveys from the living standards measurement study integrated surveys on agriculture initiative in six african countries at times the findings simply confirm the common understanding of the topic but the studies also throw up several surprises redirecting some policy debates while fine tuning others overall the project calls for more attention to checking and updating the common wisdom this requires nationally representative data and sufficient incentives among researchers and policy makers alike without well grounded stylized facts they can easily be profoundly misguided

welfare dynamics in rural kenya and madagascar this paper presents comparative qualitative and quantitative evidence from rural kenya and madagascar in an attempt to untangle the causality behind persistent poverty we find striking differences in welfare dynamics depending on whether one uses total income including stochastic terms and inevitable measurement error or the predictable structural component of income based on a household s asset holdings our results suggest the existence of multiple dynamic asset and structural income equilibria consistent with the poverty traps hypothesis furthermore we find supporting evidence of locally increasing returns to assets and of risk management behaviour consistent with poor households defence of a critical asset threshold through asset smoothing

has the green revolution been sustained the quantitative impact of the seed fertilizer revolution in pakistan revisited abstract quantitative impacts of the green revolution on food production in the punjab of pakistan are reviewed and the effects of different technologies on wheat yields over the past two decades decomposed new quantitative evidence of sustainability problems in irrigated systems is presented the yield increases expected in the post green revolution period from the further spread of modern wheat varieties a tripling of fertilizer dosage and the release of newer higher yielding varieties have been cancelled by problems resulting from increased cropping intensity use of poor quality groundwater low fertilizer efficiency and increased weed and disease losses new directions in institutional policies and research and extension strategies are outlined to improve efficiency and sustainability in wheat production and prevent pakistan from becoming a major food grain importer in the coming decades

modern varieties productivity and sustainability recent experience and emerging challenges abstract the contribution of modern varieties of cereal crops to increased productivity in the postgreen revolution period is reviewed and the future role of hybrids and biotechnology discussed particular emphasis is given to the ways in which modern varieties may contribute to input efficiency and sustainability finally economic and institutional issues in restructuring plant breeding programs for the most efficient use of resources in both the public and private sectors and at the national and international levels are analyzed

state conditional fertilizer yield response on western kenyan farms 15 16 17 we acknowledge with gratitude support from the rockefeller foundation the united states agency for 18 international development usaid leadership enhancement in agriculture program leap and the 19 coupled natural and human systems program of the biocomplexity initiative of the national science 20 foundation through grant bcs 0215890 the world agroforestry center icraf graciously hosted 21 the lead author for part of the research and provided soil test results we are also grateful to james

impacts of prices and transactions costs on input usage in a liberalizing economy evidence from tanzanian coffee growers despite improvements in production incentives agricultural output in africa remained sluggish through the 1990s low use of purchased inputs may be part of the cause of persistently low productivity in african agriculture this article analyzes the roles of relative prices and transactions costs in explaining low use of chemical inputs among tanzanian coffee growers a sample selection model indicates that output prices exert great influence on input purchases and that both fixed and variable transactions costs affect input use decisions travel costs in input and output markets have distinct effects on input usage implying distinct avenues for interventions to promote more intensive use of agricultural inputs

transaction cost economics and beyond towards a new economics of the firm in recent years transaction costs economics have come to dominate the discussion of the nature and organization of firms in transaction costs economics and beyond michael driscoll offers a critical exploration of transaction costs he argues that whilst they have much to offer they are still an inadequate basis for a general theory of the firm drawing on theories of organizational behaviour as well as economics he concludes by offering a theory of the firm that allows for both hierarchical and creative decision making

rural poverty dynamics in kenya structural declines and stochastic escapes we use panel survey data and household event histories to explore patterns of rural poverty dynamics in kenya over the period 2000 2009 we find substantial mobility across poverty categories using economic transition matrices drawing on asset based approaches we distinguish stochastic from structural poverty transitions few households successfully escaped poverty through asset accumulation up to 35 of the upwardly mobile while a large proportion of households up to 66 declining into poverty experienced structural transitions using household event histories we find significant differences across structural poverty transition classes in livelihood strategies household level shocks and other factors

modeling technology adoption in developing countries an analysis of technology adoption decisions by poor farmers is provided some possible empirical models for studying technology adoption are reviewed the issue of theoretical consistency is dealt with in terms of the costs of such consistency measured in data needs and model complexity and the benefits measured in terms of understanding the micro economic foundations of adoption

governance strategies and transaction costs in a renovated electricity market abstract this study applies a transaction cost economics tce framework to examine how economic agents adopt governance strategies in brazil s recently renovated electricity market in light of a well established tce model four attributes of transactions i e asset specificity uncertainty complexity and frequency are examined for three unregulated transactions between generating firms and final consumers the qualitative analysis of attributes unfolds into a comparative analysis of theory predicted governance strategies versus strategies observed in the marketplace it is argued that williamson s model continues to effectively predict the most efficient governance strategy in the sense of minimizing transaction costs and safeguarding idiosyncratic assets misalignment between theory predictions and observations however suggests that two additional concepts implementability and reputation must be examined alongside with williamson s four attributes of transactions in order to better explain strategic decisions in brazil s electricity market capital availability existence of compatible partners and reputation play crucial roles in explaining those decisions

factors influencing the profitability of fertilizer use on maize in zambia major findings the additional maize produced from a given amount of fertilizer applied varied widely across households even after largely controlling for soil and rainfall conditions the median estimated response rate was 15 9kgs of maize per kg nitrogen applied under the range of conditions and smallholder management practices average maizefertilizer response rates declined as the application rate increased beyond 2 bags of urea and 2 bags of d compound factors raising the response rate and profitability of fertilizer use included timely availability application rates less than the moa 4x4 recommendation use of animal draft power in land preparation and use of hybrid seed in remote areas and given current management practices fertilizer use appears to be profitable only for a minority of smallholder farmers in the relatively remote areas for farmers in the more accessible areas profitability of fertilizer use depends on timely availability if fertilizer is not available on time even farmers in the more accessible parts of this area of relatively high agronomic suitability for maize production are largely unable to use fertilizer profitably because over 30 percent of the households reported that fertilizer was delivered late these findings indicate that efforts to ensure timely distribution can contribute substantially to the productivity gains achievable from fertilizer use

income and asset poverty among pastoralists in northern kenya abstractin this study we use household panel data collected in marsabit district of northern kenya to analyse the patterns of livelihood sources and poverty among pastoralists in that area we estimate income poverty using imputed household income relative to the adjusted poverty line and asset poverty using a regression based asset index and tropical livestock units tlu per capita our results indicate that keeping livestock is still the pastoralists main source of livelihood although there is a notable trend of increasing livelihood diversification especially among livestock poor households the majority of households over 70 are both income and livestock poor with few having escaped poverty within the five year study period disaggregating income and asset poverty also reveals an increasing trend of both structurally poor and stochastically nonpoor households the findings show that the tlu based asset poverty is a more appropriate measure of asset poverty in a pastoral setting

transaction cost determinants and ownership based entry mode choice a meta analytical review entry mode choice is a critical ingredient of international entry strategies and has been voluminously examined in the field the findings however are very mixed especially with respect to transaction cost related factors in determining the ownership based entry mode choice this study conducted a meta analysis to quantitatively summarize the literature and empirically generalize more conclusive findings based on the 106 effect sizes of 38 empirical studies the meta analysis shows that the findings of the existing studies are moderated to varying degrees by both study setting factors and statistical artifacts although the combined overall effects of transaction cost based determinants are consistent with the predictions of transaction cost economics we extensively discuss the implications of meta analytical results especially moderating effects of location country of origin industry type and statistical artifacts highlight the measurement adequacy equivalence and multidimensionality of transaction cost determinants and present our suggestions to improve theoretical inquiries and empirical verifications on entry mode choice

limitations of contract farming as a pro poor strategy the case of maize outgrower schemes in upper west ghana summary contract farming cf arrangements have the potential to address market failures and improve technology adoption productivity and welfare in ghana government and donors use cf as a strategy for increasing adoption of new agricultural technologies and developing value chains yet to date there has not been a rigorous assessment of these cf schemes the focus in this paper is on different maize based cf schemes in the poorest and most remote region in ghana it assesses the profitability and potential impact of these cf schemes utilizing a unique plot level dataset that covers two periods of data and two maize plots scheme and non scheme per household and employing matching techniques and an instrumental variable approach to address selection bias and unobserved heterogeneity across farmers these are complemented by a community level survey in depth interviews with scheme operators and a series of key informant interviews results show that these schemes led to improved technology adoption and yield increases in addition a subset of maize farmers with high yield improvements due to cf participation have high profits maize cf schemes also enabled market coordination and consistent supply of quality maize to downstream industries however on average the impact of the cf schemes on profitability is negative even when input diversion is accounted for yield increases are not high enough to compensate for higher input requirements and the cost of capital under the schemes despite higher yields the costs to produce one metric tonne of maize under cf schemes are higher than on maize farms without cf schemes twice that of several countries in africa and more than seven times higher than that of major maize exporting countries the united states brazil and argentina sustainability of these cf schemes will largely depend on developing and promoting much improved varieties and technologies that boost yields in order to compensate for the high input and credit costs

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

zambia s input subsidy programs over the last decade subsidies for fertilizer and hybrid maize seed have re emerged as a cornerstone of the government of the republic of zambia s grz s agricultural development and poverty reduction strategies this article reviews the farmer input support programme fisp and other grz input subsidy programs since structural adjustment it then synthesizes existing and presents new empirical evidence on the programs targeting outcomes and effects results suggest that although 73 of smallholder households cultivate less than 2 hectares of land and that these households constitute 78 of the smallholder farms below the us 1 25 capita day poverty line the majority 55 of fisp fertilizer goes to households that cultivate larger areas other factors constant wealthier households receive more subsidized inputs subsidized fertilizer promotes maize intensification and extensification at the expense of fallow land but an additional kg of subsidized fertilizer only raises maize output by 1 88 kg on average as a result of low maize fertilizer response rates poor targeting crowding out and diversion of fertilizer intended for the program financial benefit cost ratios for fisp fertilizer are well below one the article concludes with recommended reforms to fisp including that it be downsized and the savings invested in known drivers of pro poor agricultural growth

transactions costs and agricultural household supply response we develop and estimate a model of supply response when transactions costs create a situation where some producers buy others sell and others do not participate in markets we present two rationales for why producing households may have different relationships to the market proportional and fixed transactions costs using data on mexican corn producers we estimate an empirical model that allows for separate tests of the significance of both types of transactions costs revealing that both fixed and proportional transactions costs matter for the estimation the results provide consistent estimates of supply elasticity and measures of the relative importance of factors determining both proportional and fixed transactions costs

sifting through the weeds understanding heterogeneity in fertilizer and labor response in central malawi abstract despite heavy subsidies provided by the malawian government input use remains low estimated maize response rates to fertilizer vary widely across studies raising questions about the sources of this variability and whether fertilizer is generally profitable for most smallholder farmers at commercial prices this study uses survey and soil data from farmer identified most and least fertile maize plots in central malawi to explain the heterogeneity in maize response to inputs and to determine whether this heterogeneity explains low uptake of commercial fertilizer we estimate maize yield functions to characterize the range of maize response to fertilizer and weeding labor at locations that vary from marginal to mesic environments and show that differences in productivity persist with a plot level fixed effect and are not solely attributable to farmer skill using a range of price scenarios and classifying soil fertility by total organic carbon levels we find that fertilizer is more profitable on low fertility plots while current levels of weeding labor are more likely to be profitable on the high fertility plots the largest variation in profitability occurs between plots rather than price scenarios highlighting the importance of policies to improve soil fertility and address constraints to use of complementary inputs

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

an ordered tobit model of market participation evidence from kenya and ethiopia do rural households in developing countries make market participation and volume decisions simultaneously or sequentially this article develops a two stage econometric method to test between these two competing hypotheses regarding household level marketing behavior the first stage models the household s choice of whether to be a net buyer autarkic or a net seller in the market the second stage models the quantity bought sold for net buyers sellers based on observable household characteristics using household data from kenyan and ethiopian livestock markets we find evidence in favor of sequential decision making the welfare implications of which we discuss

the close but adversarial model of supplier relations in the u s auto industry while cooperative buyer supplier relations are an important source of sustainable competitive advantage noncooperative behavior persists widely this paper tests a model incorporating noncooperative behavior within a context of formal commitment using data from the u s auto industry this close but adversarial model appears to be reasonably well supported by the data suggesting that even within professed cooperative buyer supplier relationships adversarial behavior persists in contrast a small but significant minority of the relationships were found to be characterized by high levels of trust as well as informal commitment the results suggest specific strategies for developing cooperative supplier relations 1998 john wiley sons ltd

asset versus consumption poverty and poverty dynamics in rural ethiopia several studies have shown conceptually that assets form a more robust basis for identifying the poor than do flow variables like expenditures or income asset based poverty classification can be used to distinguish structural from stochastic poverty and can enable projection of poverty dynamics through time nonetheless little work has empirically compared poverty measurement based on assets and expenditures to indicate the practical implications of the choice of poverty measure this article uses panel data between 1994 and 2004 from ethiopia to generate asset and expenditures based poverty classifications asset dynamics are then explored to test for the existence of multiple asset index equilibria that could constitute evidence of poverty traps results provide evidence of multiple equilibria and show that the asset based poverty classifications predict future asset and expenditures poverty status more accurately than expenditures based measures the findings confirm that the asset based measure could be used to more carefully target poverty interventions

research for marginal environments are we underinvested abstract evidence is presented to show that adoption of modern wheat varieties in rainfed marginal environments of the developing world has lagged substantially compared to adoption in favoured well watered areas possible reasons for this lag are discussed and a simple congruency model is used to examine the case for shifting research resources from favoured to marginal environments with particular reference to wheat breeding application of the model to resource allocation in wheat research at the international level and for india a major wheat producing country suggests that the proportion of research resources invested in marginal environments has been adequate or even a bit high relative to the share of the value of wheat produced in these environments taking into account both efficiency and equity criteria

an empirical analysis of fertilizer use in pakistan one of the stylized facts in developing countries is the wide variation in agricultural per acre input and output levels across farm households here we focus on the variation in the level of chemical fertilizer applied in particular to high yielding wheat the model used to explain the variation in fertilizer input across farms incorporates the process by which zeros are generated in particular differentiating between households who do not apply because of lack of access and those who do not apply out of choice we find that access is positively correlated with farm size but that among users per acre fertilizer levels decrease with farm size we interpret the latter by appealing to input choice under uncertainty with this interpretation our results suggest that although larger farms have a higher level of non stochastic wealth which in the presence of decreasing absolute risk aversion has the effect of increasing fertilizer intensity with farm size the presence of increasing relative risk aversion means that the net relationship between farm size and fertilizer intensity is negative this latter affect appears to dominate any tendancy for higher fertilizer intensity on larger farms arising from better knowledge or irrigation facilities

on price risk and the inverse farm size productivity relationship abstract the oft observed inverse relationship between farm size and productivity has elicited several explanations having important policy and theoretical implications using advances in the analysis of price risk effects on producer behavior and a simple two period model of an agricultural household that both produces and consumes under price uncertainty at the time labor allocation decisions are made this paper demonstrates analytically that a non degenerate land distribution and price risk can together produce an inverse relationship even absent any of the more common explanations empirical evidence from madagascar confirms the plausibility of this intuitive explanation for the phenomenon

is increasing inorganic fertilizer use for maize production in ssa a profitable proposition evidence from nigeria inorganic fertilizer use across sub saharan africa is generally considered to be low yet the notion that fertilizer use is too low is predicated on the assumption that it is profitable to use rates higher than currently observed there is however limited empirical evidence to support this using a nationally representative panel dataset this paper empirically estimates the profitability of fertilizer use for maize production in nigeria we find that fertilizer use in nigeria is not as low as conventional wisdom suggests low marginal physical product and high transportation costs significantly reduce the profitability of fertilizer use apart from reduced transportation costs other constraints such as soil quality timely access to the product and availability of complementary inputs such as improved seeds irrigation and credit as well as good management practices are also necessary for sustained agricultural productivity improvements

how do fertilizer subsidy programs affect total fertilizer use in sub saharan africa crowding out diversion and benefit cost assessments a major determinant of input subsidy programs effects on the achievement of national policy goals is the extent to which they raise total fertilizer use this study synthesizes recent literature on how the new generation of targeted input subsidy programs has affected national fertilizer use after accounting for crowding effects and derives benefit cost bc estimates of the fertilizer subsidy programs for kenya malawi and zambia after accounting for crowding out and diversion we highlight two major findings first accounting for the illicit diversion of program fertilizer can profoundly influence estimates of how fertilizer subsidy programs affect total fertilizer use and program impacts given recent evidence that 33 or more of total program fertilizer may be diverted before being received by intended beneficiary farmers the failure to account for program diversion is shown to overestimate the contribution of the subsidy programs to national fertilizer use by 67 3 in the case of malawi by 61 6 for zambia and by 138 0 for kenya the second major finding is that the incremental value of maize output produced from these subsidy programs is considerably less than their costs in most years except under unusually high maize price assumptions conventional bc analyses that do not account for crowding out and diversion may seriously overestimate the benefits of input subsidy programs greater attention to program design and implementation details to reduce problems of crowding out and diversion can substantially raise the returns to such programs

crossroads the organization of economic activity transaction costs firm capabilities and the nature of governance in a recent 1993 paper in organization science hennart discussed the underlying logic based on transaction cost and agency theory for explaining the choice between firms and markets and the reason why most transactions have both firm like and market like properties relying on williamson s comparative institutional approach which studies economic organization from a transaction cost minimizing point of view under the assumption of opportunism the argument was made that transaction cost tc logic provides a complete theory of the organization of economic activity in this paper i argue that with its purely incentive based logic governed by assumptions of opportunism tc economics is fundamentally incapable of being a complete theory of economic organization the notion of the firm as a bundle of transactions or contracts is an inadequate and shallow basis for a theory of the firm since it basically ignores the essential notion of the firm as a bundle of knowledge and the underlying processes there

how high are rates of return to fertilizer evidence from field experiments in kenya the idea that peasant farmers are rational profit maximizers has been a staple of development economics since theodore schultz 1964 it has also been influential in shaping policy for example agricultural experts have stressed the importance of fertilizer use in raising agricultural yields pointing to impressive results on experimental farms and to huge differences in agricultural productivity across countries with different levels of fertilizer use robert evenson and douglas gollin 2003 historically many countries subsidized fertilizer in response but economists have been skeptical of claims that farmers are leaving money on the table noting that fertilizer may not have the same returns on real world farms as on experimental farms that returns to fertilizer may be low for many farmers even if they are high on average tavneet suri 2007 that fertilizer may require complementary inputs or may be risky many countries have withdrawn or scaled back fertilizer psychology and development theory and experimental evidence

exploring poverty traps and social exclusion in south africa using qualitative and quantitative data abstract recent theoretical work hypothesises that a polarised society like south africa will suffer a legacy of ineffective social capital and blocked pathways of upward mobility that leaves large numbers of people trapped in poverty to explore these ideas this paper employs a mix of quantitative and qualitative methods novel econometric analysis of asset dynamics over the 1993 98 period identifies a dynamic asset poverty threshold that signals that large numbers of south africans are indeed trapped without a pathway out of poverty qualitative analysis of this period and the period 1998 2001 more deeply examines patterns of mobility and confirms the continuation of this pattern of limited upward mobility and a low level poverty trap in addition the qualitative data permit a closer look at the specific role played by social relationships while finding ample evidence of active social capital and networks these are more helpful for non poor households for the poor social capital at best helps sta

nudging farmers to use fertilizer theory and experimental evidence from kenya we model farmers as facing small fixed costs of purchasing fertil izer and assume some are stochastically present biased and not fully sophisticated about this bias such farmers may procrastinate post poning fertilizer purchases until later periods when they may be too impatient to purchase fertilizer consistent with the model many farmers in western kenya fail to take advantage of apparently profit able fertilizer investments but they do invest in response to small time limited discounts on the cost of acquiring fertilizer free deliv ery just after harvest calibration suggests that this policy can yield higher welfare than either laissez faire policies or heavy subsidies

quality oriented technical change in japanese wheat breeding abstract the article presents a productivity analysis of japanese wheat breeding research we first estimate a hedonic function to determine the marginal implicit values of japanese wheat characteristics and find that protein contributes substantially to millers price offers to farmers induced innovation theory implies breeders thus should be responding to new protein oriented price policies by developing high protein wheat varieties we test this hypothesis by estimating a distance function relating breeding resources including what we call gene recharge rates to the yield and protein characteristics of discovered varieties new varieties indeed have been protein favoring and yield disfavoring suggesting government research programs have been market oriented

differential risk exposure and stochastic poverty traps among east african pastoralists in the pastoraland agropastoralsystems of east africa s arid and semi arid lands asal climatic shocks price volatility disease outbreaks and widespread violence beget frequent disruption of already fragile livelihoods last year s drought dramatically demonstrates that intense suffering recurs regularly in the asal in spite of significant humanitarian aid flows this article explores why that might be we draw on preliminary results of an ongoing quarterly survey in six sites in northern kenya seventeen years herd history data collected from boran pastoralists in southern ethiopia desta five years seasonaldata on land use and herd management decisions among gabra pastoralists in northern kenya mcpeak 2000a b and three years transactions level data on livestock markets in northern kenya barrett et al in the interest of brevity we present only a synthesis of findings from these and related studies that suggest how differences in pastoralists ubiquitous risk exposure create and sustain structuralpoverty traps from which many asal pastoralists are having a difficult time escaping

one kind of freedom poverty dynamics in post apartheid south africa abstract a 1993 south african living standards survey documented the legacy of apartheid in the form high levels of inequality and human insecurity drawing on a 1998 re survey of households in the 1993 study this paper explores whether this legacy has been superseded or whether apartheid s end has been only one kind of freedom that has left households in a poverty trap from which they cannot escape after proposing a theoretically grounded dynamic poverty typology that distinguishes stochastic from structural poverty transitions the paper goes on to estimate that significant numbers of the south african poor are potentially trapped in a structural poverty trap and lack the means to escape poverty over time

heterogeneous returns to chemical fertilizer at the intensive margins insights from nepal increased fertilizer use is considered important for agricultural development in low income countries promoting increased use of chemical fertilizer by lowering its price may be ineffective if demand is price inelastic in theory the price elasticity of demand depends on the returns to its use but the evidence is scarce furthermore while returns are often estimated for small changes in chemical fertilizer use returns to larger changes in its use intensive margins are less understood through the inter zonal comparisons in nepal we provide indicative evidence that greater returns to chemical fertilizer are associated with greater price elasticities of demand moreover the evidence suggests that returns at the intensive margins rather than returns to small changes may largely account for inter zonal differences in returns to chemical fertilizer within nepal the results suggest that better understanding the returns at the intensive margins is critical for effective agricultural inputs policies in developing countries

competence and contract in the theory of the firm abstract the coase williamson response to the question why do firms exist is based on the idea that transaction costs in viable firms are lower than they would be if production was coordinated through the market the explanatory focus of this argument is on the diminution of costs related to transactions between given individuals however this ignores the possibility of activities which are in principle non contractible including aspects of the process of production further the reliance on comparative statics in transaction cost theory downplays the distinctive kind and rate of human learning that takes place within firms this paper argues that work on organizational learning and cultural transmission reinforces a competence based explanation of the existence and relative efficiencies of firms and this approach can also provide answers to the original question posed by coase accordingly the development of a research program involving a conjoint evaluation of both competence based and transaction cost approaches is proposed

stochastic wealth dynamics and risk management among a poor population we use herd history data collected among pastoralists in southern ethiopia to study stochastic wealth dynamics among a poor population although covariate rainfall shocks plainly matter household specific factors including own herd size account for most observed variability in wealth dynamics we find no support for the tragedy of the commons hypothesis past studies may have conflated costly self insurance with stocking rate externalities biophysical shocks move households between multiple dynamic wealth equilibria the lowest suggesting a poverty trap according to nonconvex path dynamics these findings have broad implications for development and relief strategies among a poor population vulnerable to climatic shocks a vast economic literature on risk management rests explicitly or implicitly on the classic friedmanite permanent income hypothesis studies of portfolio management consumption smoothing social insurance and the like all depend on the canonical assumption that stochastic income realisations are drawn from a stationary income distribution leading to consumption smoothing off a stable asset base the possibility of asset accumulation connects this literature to the immense literature on the theory and empirics of economic growth

are kenyan farmers under utilizing fertilizer implications for input intensification strategies and research abstract it is widely perceived that african farmers are under utilizing inorganic fertilizer however very little long term evidence from farmers fields accounting for variations in agro ecological conditions has been assembled to back this claim or determine the conditions under which it is true using five waves of nationwide household survey data from kenya covering 13 years we estimate the relative and absolute profitability of nitrogen application rates on maize fields and compare these profitability conditions to observed nitrogen use patterns over time in general we find that farmers are consistently and steadily increasing towards risk adjusted economically optimal rates of fertilizer application over time and that in the most agriculturally productive areas farmers application rates on maize sometimes exceed rates that maximize profitability fertilizer use rates may nevertheless be profitably raised in these areas but doing so will require the adoption of complementary inputs and management practices that raise maize response rates to fertilizer application this motivates a more holistic approach to input intensification strategies in the region

breaking ground unearthing the potential of high resolution remote sensing soil data in understanding agricultural profits and technology use in sub saharan africa summary there is a growing interest in how land degradation affects the welfare of the rural poor especially where environmental conditions continue to worsen and the future of ecosystem health remains uncertain nowhere is this more important than in sub saharan africa where rural poverty remains high and pressure on natural resources continues to build at the same time generating more agricultural profits on this land remains crucial to reducing poverty this research asks how changing land quality as measured by soil organic carbon soc content affects agricultural profitability and agricultural technology adoption for poor farmers in tanzania it is the first to match high resolution remote sensing soil data to nationally representative household plot surveys using the world bank s living standards measurement study and world agroforestry centre s land degradation surveillance framework we employ a household fixed effects model that isolates soc contributions to plot level agricultural profits finding positive changes of 7 8 per acre per year for each gram per kilogram change in soc with higher sensitivity to soc differences for farmers with worse quality land soc and fertilizer use also exhibit a positive synergistic interaction with plot level agricultural profits despite this however we find that soc levels do not factor into fertilizer adoption decisions and land quality has a smaller role in how farmers assign value to their land compared to how it contributes to profits partly because of a lack of matched high resolution and nationally representative environmental and socioeconomic data researchers and policymakers typically have not been able to include land quality as a primary dimension on which to analyze agricultural profitability and technology use in sub saharan africa we conclude that this should be a major factor in both targeting rural development and environmental policies and understanding impacts of long run land health declines on the world s poor

the relation between farm size and farm productivity the role of family labor supervision and credit constraints abstract the paper shows that if the performance of hired farmhands is affected by supervision from family members and if the availability of credit is dependent on the amount of land owned then a systematic positive or negative relationship between per acre yields and farm size will prevail a model with no supervision effects on labor productivity would predict that yields are unaffected by farm size the paper also investigates the relation between land utilization and owned holding size when land rental possibilities are limited results are shown to be compatible with various observed patterns in ldcs