bluuebunny/crossref_metadata_2025 huggingface dataset:
AGRICULTURE IN THE URUGUAY ROUND: AMBITIONS AND REALITIES
Authors: Guyomard H. , Mahé L. P. , Munk K. J. , Roe T. L.
Published: November 2008

Agricultural trade policies are basically a function of domestic policy considerations which have produced high levels of support in many countries. New policy instruments such as direct payments, which are more demanding in terms of information costs but which distort resource allocation less, are becoming more attractive. Unilateral liberalisation is, however, unlikely. Freer trade is a public good which requires international collective action to be provided. Countries which have a clear‐cut trade interest in liberalising markets for commodities they export can play the role of catalyst in international co‐ordination. The existence of big players is a favourable factor. Hence, the drift of the Round towards a co‐ordination of US‐EC interests. Both political economy and trade interest considerations suggest that an agreement reached will have its main impact on crops which are widely traded. The main constraining factor of an agreement on EC and US agriculture will be the discipline it will impose on the use of export subsidies. Agriculture will still not come fully under GATT rules which apply to other sectors, but in the future the CAP will be more constrained by international commitments than in the past.
RELATIVE PRICE VARIABILITY AMONG AGRICULTURAL COMMODITIES AND MACROECONOMIC INSTABILITY IN THE UNITED KINGDOM
Authors: Smith V. H. , Lapp J. S.
Published: November 2008

This paper develops measures of relative price variability among agricultural commodities in the UK farm sector for the period 1956‐88. Econometric tests of the hypothesis that relative price variability is positively correlated with instability in the macroeconomy are carried out. The results indicate that UK agricultural commodity prices become more volatile relative to one another when the economy‐wide inflation rate increases and when aggregate output becomes more variable. These findings suggest that UK producers and consumers of domestically grown farm products experience increased risk and uncertainty in their production and consumption decisions during periods of macroeconomic instability. The effects of UK entry into the European Community are also examined; no evidence is found to suggest that adoption of the Common Agricultural Policy reduced year‐to‐year relative price variability among agricultural commodities.
WINE QUALITY DIFFERENTIALS IN HEDONIC GRAPE PRICING
Authors: Golan A. , Shalit H.
Published: November 2008

The paper focuses on identification and evaluation of wine quality characteristics of grapes. A pricing schedule that rewards producers for quality attributes is developed. This quality‐based pricing schedule would serve to reduce the production of poor‐quality wines by giving farmers a correct and powerful incentive to provide better grapes. The research evaluates the proposed grape price schedule in two steps. The hedonic qualities of Israeli grapes are estimated by relating the contribution of each grape characteristic to wine quality. Then the price of wine quality is estimated, and the hedonic prices for Israeli grapes are calculated. Results show that the current pricing system pays little premium for a better‐quality product.
TOWARDS AN ECONOMIC FRAMEWORK FOR EVALUATING POTENTIAL BENEFITS FROM RESEARCH INTO WEED CONTROL
Authors: Pandey S. , Lindner R. K. , Medd R. W.
Published: November 2008

A dynamic economic model for estimating benefits from research into alternative tactics for weed control is developed, by treating weeds as renewable negative resources. Research benefits are evaluated as the change in steady‐state profit resulting from research‐induced changes in various parameters of the system. The model is illustrated by application to research aimed at the control of wild oats in wheat in Australia, whereby it was found that the magnitude of benefits depended not only on the level of research‐induced change but also on demographic behaviour of the weed. Research leading to reductions in seedling survival, potential fecundity or recruitment gave higher benefits than the manipulation of weed competitiveness or seed mortality. Reduced seedling survival gave the highest benefits in most cases, but achieving such improvement by improving herbicide efficacy may have a high marginal cost given that the tactic is already well‐researched. Thus it is concluded that research into reducing potential fecundity could be more worthwhile, since it also gave high benefits but is relatively unexplored.
VARIETAL CHANGE IN POST‐GREEN REVOLUTION AGRICULTURE: EMPIRICAL EVIDENCE FOR WHEAT IN PAKISTAN
Authors: Heisey P. W. , Tetlay K. A. , Ahmad Z. , Ahmad M.
Published: November 2008

Yield gains may continue to be the most important factor affecting varietal change in post‐Green Revolution agriculture, but they are often not as spectacular as in the initial shift to high‐yielding varieties. A survey of nearly four hundred farmers was conducted to determine factors leading to slow varietal change in Pakistan, where disease vulnerability has been a particular problem. Farm‐to‐farm information transfer, and to a lesser degree literacy, were important in explaining varietal awareness. Farmers' opinions of general and specific yield characteristics were important in explaining varietal adoption. In contrast, formal extension appeared to have little effect on either awareness or adoption, and farmers' disease knowledge was also limited. Strengthening formal educational and extension systems may be crucial to continued agricultural productivity growth in post‐Green Revolution agriculture.
OUTLIERS IN AGRICULTURE: AN INTERVENTION ANALYSIS OF AGRICULTURAL LAND VALUES
Authors: Lloyd T. A.
Published: November 2008

Intervention analysis offers a framework for the identification and modelling of outlying observations in empirical time series. Within this framework, there are two types of outlier; an additive outlier, representing a one‐period blip in the series, and an innovational outlier, whose effect is spread over many time periods. Intervention analysis is used here to study an agricultural land price boom of the early 1970s that is generally believed to have been caused by speculative activity, and the statistical results are consonant with that view. The procedure detects an innovational outlier in the land price series at 1972 with dynamic effects that resemble the life cycle of a speculative bubble. It is inferred from these results that speculation added 52 per cent to the rate of growth of land prices in 1972, 19 per cent in 1973 and caused a fall in the rate of change in land prices of 19 per cent in 1974 and 17 per cent in 1975.
A MODIFIED LEONTIEF MODEL FOR ANALYSING THE IMPACT OF MILK QUOTAS ON THE WIDER ECONOMY
Authors: Roberts D.
Published: November 2008

The paper estimates the impact of milk quotas on the UK economy using a modified SAM‐based Leontief model. Since milk quotas involve the control of gross output as opposed to final demand, it is argued that the traditional form of a Leontief model needs to be adapted so as to make the output of dairy producers exogenous to the system. Modifications to both the demand‐driven and supply‐driven Leontief model are suggested thus allowing the estimation of both the backward and forward linkage effects of quotas. The results suggest that, in total, the backward linkage effects of milk quotas are more significant than the forward linkage effects, with the magnitude of the latter constrained by the pattern of milk marketing. Taking both types of linkages into account, it is estimated that the potential 3 per cent further reduction in quota levels being discussed in the context of CAP reform threatens a total of 11,000 jobs in the economy.
THE ECONOMIC ADVANTAGE OF LONGEVITY IN THE DAIRY COW
Authors: Stott A. W.
Published: November 2008

An adaptive stochastic dynamic programming model is described which solves the optimum replacement decision problem for the dairy cow under physical and financial assumptions currently typical for the UK. By expressing the expected net present value of the replacement heifer as an annuity equivalent under various assumptions with and without enforced (involuntary) culling an estimate of the value of longevity was obtained and an assessment made of its sensitivity to key assumptions. Increased longevity added about $20 per extra lactation per year on to the investment potential of the replacement dairy heifer under the assumptions made. This figure is sensitive to replacement cost, but could be used to provide economic values for longevity as part of an economic breeding objective for dairy cattle in the UK.
PRICE TRANSMISSION IN THE UNITED KINGDOM YELLOW FATS MARKET IN THE PRESENCE OF IMPERFECT COMPETITION
Authors: Traill W. B. , Henson S.
Published: November 2008

The yellow fats sector comprises butter, margarine and a number of newer dairy‐and low‐fat spreads. In analysing the transmission of policy prices (e.g. the intervention price of butter) in this sector, which is characterised by concentrated processors and retailers, it is unrealistic to assume that marketing margins are competitively determined. The empirical estimates in this paper suggest that, since the mid‐1980s, processors and retailers of margarine take into account the price of butter when setting margarine prices, which they can only do if they possess market power. This implies that the benefits of CAP reform (in the form of lower butter prices) may be seriously underestimated if the resulting fall in margarine prices is ignored; the increase in butter consumption would be overestimated.
COOPERATIVES – UNDER PERFORMERS BY NATURE? AN EXPLORATORY ANALYSIS OF COOPERATIVE AND NON‐COOPERATIVE COMPANIES IN THE AGRI‐BUSINESS SECTOR
Authors: Hind A. M.
Published: November 2008

This paper sets out to determine whether agricultural cooperative companies in the UK are more likely to underperform when compared with non‐cooperative companies in the same sector. The research indicates, that on the basis of profitability, capital gearing and liquidity, there were no significant differences between the two groups. For the business operational efficiency indicators of sales/working capital ratios, and creditor ratios, there were also no significant differences although, for the indicators of stock turnover and debtor ratios, cooperatives were seen to have significantly higher rates when compared with the non‐cooperative companies. The findings of this research reveal that cooperatives do not perform differently to non‐cooperatives, despite being required to balance member needs with the attainment of corporate goals.
OVER‐REACTIONS IN US AGRICULTURAL COMMODITY PRICES
Authors: Allen M. T. , Ma C. K. , Pace R. D.
Published: November 2008

The purpose of this paper is to test rationality in agricultural commodity markets. We investigate the price‐adjustment process after significant events using abnormally large cash commodity price changes as proxies for the arrivals of significant events in the markets. The evidence suggests that market rationality is violated. Generally, agricultural commodity prices tend to reverse after significant events. This is consistent with the over‐reaction hypothesis which maintains that traders in spot commodity markets over‐weight more recent information and under‐weight prior information in their expectations.
AGRICULTURE IN THE NEW RUSSIAN FEDERATION
Authors: Pockney B. P.
Published: November 2008

The causes of the present crisis are sought in the historical origins of the role of agriculture in the forced march to industrialisation by the USSR and in the impact of the recent, post‐Soviet reforms on agriculture. The collapse is compared with the damage inflicted on farming in the Second World War but it is also noted that the recent decline in farming is not so severe as that in industry. Some of the essential preconditions for recovery are briefly considered.
NET INVESTMENT IN AGRICULTURAL TRACTORS
Authors: Cooper D. N.
Published: November 2008

This essay considers investment in agricultural tractors in the UK, and examines and compares econometric models of investment. A net investment series is calculated from quality‐adjusted gross investment figures, showing limited negative net investment over time but with substantial variability. Four time‐series modelling techniques are compared as representations of the demand for tractors over the period 1964 to 1990; these are the accelerator (clay‐clay), neo‐classical (putty‐putty), expectations augmented neo‐classical (putty‐clay) and ad hoc models. Model results support the use of an expectations augmented, neo‐classical model of net investment in a partial adjustment framework. Future expectations of agricultural policy are considered as a major influence on investment, an aspect that backwards‐looking expectations models only partially represent.
TESTING FOR PHILIPPINES RICE MARKET INTEGRATION: A MULTIPLE COINTEGRATION APPROACH
Authors: Silvapulle Param , Jayasuriya Sisira
Published: November 2008

In this paper we demonstrate the use of Johansen's multiple cointegration technique as a test for spatial market integration. We argue that this technique overcomes many of the limitations of previous methods for testing market integration. An application of this approach to the Philippines rice markets indicates that these markets are generally well integrated in the long‐run with Manila as the dominant market. However, there are other inter‐regional relationships which are important in the short term.
THE EFFECT OF MINIMUM WAGES ON UK AGRICULTURE
Authors: Dickens Richard , Machin Stephen , Manning Alan , Metcalf David , Wadsworth Jonathan , Woodland Stephen
Published: November 2008

Since the abolition of the Wages Councils in September 1993, agriculture is the only sector in the UK economy covered by any form of minimum wage legislation. However, the recent denunciation of an ILO convention covering minimum wages in agriculture has paved the way for the abolition of the Agricultural Wages Boards. This paper investigates the impact of the system of minimum wages on the level and structure of earnings and employment in agriculture. On wages, our main conclusion is that the minimum wages set by the Agricultural Wages Boards are important determinants of the average level and distribution of earnings in UK agriculture. On employment, our main conclusion is that there is no evidence that minimum wages have reduced the level of employment in agriculture. If anything, our estimates imply a weak positive, though statistically insignificant, impact of minimum wages on employment. This seems to be true when we disaggregate by sex and skill.
THE VALUE OF FARM ANIMAL WELFARE
Authors: Bennett Richard
Published: November 2008

This paper explores further some of the ideas put forward by McInerney (1993) in his economic perspective of animal welfare. It uses a simple economic framework to consider citizens' concerns and perceptions about farm animal welfare and the production and consumption of livestock products in society. People's perceptions that certain aspects of livestock production give rise to poor farm animal welfare are a potential source of disutility for them. This disutility may be associated with people's own consumption of livestock products and/or with other people's consumption. The latter is a negative externality of consumption in society, resulting in very real indirect costs associated with livestock production. The paper discusses the need for valuing farm animal welfare, considers techniques for evaluation and highlights some of the policy issues involved.
DISTRIBUTION OF RESEARCH GAINS UNDER DIFFERENT MARKET STRUCTURES: THE IMPACT OF TECHNOLOGICAL CHANGE WITHIN THE UK DAIRY INDUSTRY
Authors: Dryburgh C. R. , Doyle C. J.
Published: November 2008

This paper describes a model for assessing the aggregate level and distribution of benefits within the UK dairy industry from research aimed at reducing the costs of dairying equipment and machinery. The effect of the market structure of the farming and processing sectors is examined. It is shown, in this model, that the machinery sector always loses from a technological advance. The benefits and losses to the other sectors depend on the organisational structure of farmers and processors. Finally, the effect of imposing a levy on farmers to pay for research is discussed. The losses are shown not to be distributed in the same way as the research gains. The results have direct implications for the funding of research.
THE SOURCES OF COMMODITY EXPORT REVENUE VARIABILITY IN THE SOUTH PACIFIC ISLAND NATIONS
Authors: In F. , Onchoke S. N.
Published: November 2008

Using annual time‐series data for the selected South Pacific Island Nations (SPINs), sources of commodity export revenue variability (CERV) are analysed using forecast error decomposition and impulse response analysis based on vector autoregression (VAR) models. The evidence shows that there are different sources which contribute to CERV, although the magnitudes of the contributions are variable. External market factors are important, but it is shown that domestic factors (especially the GDP) have equal if not greater influence on CERV in the selected SPINs, particularly in Solomon Islands and Fiji.
AN ANALYSIS OF THE ROLE OF UNCERTAINTY IN THE MARKETING OF PERISHABLE PRODUCTS
Authors: Fraser Rob
Published: November 2008

This paper analyses the problem of marketing uncertainty for producers of perishable products. It argues that there are two main features to this marketing uncertainty: uncertainty of demand at the market price due to quality considerations; and uncertainty of transport services associated with the independence and cost of such services. Moreover a negative correlation between the uncertainties of demand and transport services may be shown theoretically to be an additional cost for producers, and as such may be sufficient to create a reversal of supply response to a given change in market conditions.
COMPARATIVE BIAS BETWEEN SAMPLING FRAMES FOR FARM SURVEYS
Authors: Emerson Harriet , MacFarlane Robert
Published: November 2008

This paper proposes a methodology for quantifying the relative bias inherent in various farm sampling frames. It can be applied to any area or region for which a significant sample of farms is required. A random survey examined the relative representativeness of selected farm characteristics by National Farmers' Union of Scotland (NFUS) and Scottish Landowners' Federation (SLF) membership lists, the British Telecom Yellow Pages farm business listings, and the Scottish Office Agriculture and Fisheries Department June census returns on farm holdings. It is suggested that a methodology to assess comparative bias should be employed prior to any extensive work requiring the use of a sampling frame for farm holdings or businesses, to ensure that the most appropriate framework is chosen and a greater understanding of research findings achieved.
A COMPARISON OF THREE NONPARAMETRIC MEASURES OF PRODUCTIVITY GROWTH IN EUROPEAN AND UNITED STATES AGRICULTURE
Authors: Bureau Jean‐Christophe , Färe Rolf , Grosskopf Shawna
Published: November 2008

Productivity growth is an important source of improvements in the standard of living. In this paper, we compare three nonparametric measures of productivity, namely the Fisher, the Hulten and the Malmquist measure. Our application of these measures to the agricultural sectors of nine EC countries and the US over the period 1973 to 1989 yield similar patterns of productivity growth.
TESTING THE INDUCED INNOVATION HYPOTHESIS USING COINTEGRATION ANALYSIS
Authors: Machado Fernando S.
Published: November 2008

This paper deals with some of the problems involved in testing the hypothesis that factor price movements tend to influence the type of technological innovations which are developed and adopted, known as the Induced Innovation Hypothesis. Previous methods to perform this test are briefly reviewed and their limitations are discussed. A testing procedure which is based on the use of cointegration analysis is proposed and its advantages outlined. Finally, one application of the method is made, providing little support for the Induced Innovation Hypothesis in the case of US Agriculture (1948–83).
CAPITAL ASSET PRICING AND AGRICULTURAL ASSETS IN ENGLAND AND WALES
Authors: Gu Dehong
Published: November 2008

This paper uses Capital Asset Pricing Models to analyse the relationship between returns and risks for agricultural assets in England and Wales. The study also compares this relationship with those of non‐agricultural assets such as ordinary shares, government bonds, and commercial and industrial properties. The results show that the estimated market risks associated with agricultural assets are low and tenant‐type agricultural assets have earned much lower returns than other assets with similar market risks.
A MODEL OF US CEREALS FOOD AID FLOWS WITH AN APPLICATION TO TRADE LIBERALISATION
Authors: Gilbert Christopher L.
Published: November 2008

This paper reports a model in which food aid flows are seen as the outcome of budget‐constrained resource allocation decisions. This framework allows the application of standard demand theory to structure an econometric model of the supply of food aid from the United States. Aid propensities out of public stocks remain high for wheat and rice, but not for maize. In addition, rice disbursements are price‐sensitive, in particular in relation to the price of rice relative to wheat. The model is used to examine some of the possible implications of trade liberalisation resulting from the Uruguay Round of the CA TT on food aid flows. These are dominated by stock effects, resulting in a possible fall in the volume of US food aid by 11 per cent to 14 per cent.
THE FARM FAMILY LIFE CYCLE, SUCCESSION PATHS AND ENVIRONMENTAL CHANGE IN BRITAIN'S COUNTRYSIDE
Authors: Potter Clive , Lobley Matt
Published: November 2008

Research into the physical extent and rate of recent environmental change in the British countryside is at a more advanced stage than that concerned with causes and processes. This paper presents findings from a project designed to introduce a socio‐economic component into the Government's Countryside Surveys. Based on a questionnaire survey of occupiers with land in 169 1 km squares across Britain and a linked analysis of environmental and farm survey data, it examines the connection between farm business and land cover change in the squares. Different trajectories of farm business, and hence environmental, change are defined and related to lifecycle effects and influences associated with succession. A conclusion is that the processes of succession and inheritance are continuing to define critical transitions during which farm business, and hence environmental change, is most likely to be taking place.
MEASUREMENT ISSUES IN THE TRAVEL COST METHOD: A GEOGRAPHICAL INFORMATION SYSTEMS APPROACH
Authors: Bateman Ian J. , Garrod Guy D. , Brainard Julii S. , Lovett Andrew A.
Published: November 2008

A review of the travel cost (TC) literature shows that the base measurements of travel time and distance underpinning many studies are often obtained via crude simplifications. This paper presents an application of the TC method conducted using geographical information system (GIS) software. This permits superior measurement of both travel time and distance providing a more accurate and realistic basis for valuations.
CROP INSURANCE: THE RELATIONSHIP BETWEEN INDEMNITY PRICE AND EXPECTED OUTPUT PRICE
Authors: Hyde Charles E.
Published: November 2008

Crop insurance contracts typically constrain the choice of price at which indemnification occurs to be less than the expected output price. This restriction is first analysed assuming only risk‐averse farmers, and yield and price uncertainty. General conditions under which the optimal price selection is bounded above by the expected output price are found to be difficult to derive. The results of numerical simulations based on a range of different utility functional forms are presented, and a strong tendency is observed for the optimal price selection to be bounded from below by the expected output price. The effect of increasing output price variability on the optimal price selection is also considered. The simulation results suggest that the optimal price selection is often non‐increasing with a mean‐preserving spread of the output price distribution. Lastly, it is noted that even in the presence of hidden‐action moral hazard, if the incentives for shirking are not too high, the constraint that price selections be lower than the expected output price may still be binding.
EFFECTS OF THE 1992 DROUGHT ON PRODUCTIVITY IN THE SOUTH AFRICAN HOMELANDS: AN APPLICATION OF THE MALMQUIST INDEX
Authors: Piesse Jenifer , Thirtle Colin , van Zyl Johan
Published: November 2008

Programming techniques are used to calculate the efficiency of maize production on farms in the Transvaal homelands of KaNgwane, Lebowa and Venda, in 1991. The productivity losses that resulted from the 1992 drought are then calculated subject to the base year by adding a measure of technical progress and constructing multilateral Malmquist indices of total factor productivity (TFP), for the same 174 farms. In Venda, the least advanced region, productivity fell by 61%, compared with 74% in Lebowa and 89% in KaNgwane, which is far more commercialised. Three causes of these differences can be identified. Firstly, the improved seed and fertiliser technology that has been introduced by the Farmer Support Programmes has increased investment and hence risk. Secondly, the improved maize varieties appear to be less resistant to moisture stress than traditional seeds and lastly, there were unrecorded regional variations in the severity of the drought.
SUPPLY AND DEMAND FUNCTIONS FOR UK AGRICULTURE: BIASES OF TECHNICAL CHANGE AND THE RETURNS TO PUBLIC R&D
Authors: Khatri Yougesh , Thirtle Colin
Published: November 2008

This study is the first UK application of the integrated, single‐stage approach to estimating the returns to R&D. Fitting a residual profit function, which incorporates the technology variables, to new data for UK agriculture for 1954–1990 produces short‐ and long‐run estimates of the output supply and input‐demand price elasticities, elasticities of the effects of relaxing the non‐variable input constraints and shadow prices for these non‐variable factors. All of the supply and demand relationships are found to be inelastic, but the price‐responsiveness of the system has increased over time. The long‐run model, in which all of the inputs except land are treated as variable and private‐sector research is included, gives a marginal rate of return to public agricultural R&D of only 18 per cent. Estimates of the factor‐saving biases of the technology variables suggest that public R&D has had its greatest effect in the animal sector.
ESTIMATION OF TECHNICAL EFFICIENCY IN SWEDISH CROP FARMS: A PSEUDO PANEL DATA APPROACH
Authors: Heshmati Almas , Kumbhakar Subal C.
Published: November 2008

This paper deals with the estimation of technical efficiency using pseudo panel data constructed from rotating panel data on Swedish crop farmers where each unit is observed for a maximum of four years. Farms are grouped into 89 cohorts, using their common time‐invariant characteristics, and the cohorts are used as an individual unit in the empirical analysis. The overall technical inefficiency is decomposed into a persistent and a residual component. An alternative model with time‐varying technical inefficiency is also considered. In addition to technical inefficiency, measures of returns to scale and technical change are also obtained.
EXPLAINING FOOD CONSUMPTION PATTERNS IN GREECE
Authors: Karagiannis Giannis , Velentzas Kostas
Published: November 2008

This paper decomposes observed changes in Greek food budget‐shares into three components: the total substitution effect, the budget (total expenditure) effect, and the habit effect. The analysis is based on a dynamic specification of the AIDS model. The empirical results indicate that (i) the effect(s) explaining the evolution of consumption patterns vary across food items and (ii) that accession to the EU increased the relative contribution of the total substitution effect.
THE ECONOMIC IMPACT OF ALTERNATIVE TYPES OF RURAL TOURISM
Authors: Slee Bill , Farr Helen , Snowdon Patrick
Published: November 2008

Rural tourism has become an important part of many rural development strategies in the last decade. However, it has largely been ignored by rural economists. This paper examines the impact of different styles of tourism development on the local economy of Badenoch and Strathspey, in the Highlands of Scotland. Policy changes in tourism and agriculture are reviewed and the proportional multiplier method used in this study is explained. The study contrasts the repercussions on local economies of ‘soft’, land‐based tourism with those arising from ‘hard’, enclave forms of tourism. The results indicate that soft tourism is more embedded in the local economy and therefore generates higher local income and employment multipliers per unit of visitor spend. However, spend per head is higher for hard tourists, suggesting that development agencies may have to trade off the total volume of visitor spend against locally beneficial effects.
THE ‘NEW INSTITUTIONAL ECONOMICS’ IN AGRICULTURAL DEVELOPMENT: INSIGHTS AND CHALLENGES
Authors: Hubbard Michael
Published: November 2008

The insights of the ‘new institutional economics’ (NIE) and the challenges it faces are discussed, using examples from agricultural development. NIE has emerged from the theories of the firm, markets, history and politics. It is characterised by two propositions: (i) the nature of business contracts is determined by uncertainties and assurances arising from market conditions and from prevailing institutions (property rights, conventions, authority structures); (ii) prevailing institutions are altered by social action responding ultimately to trend changes in relative prices. Empirical progress in NIE has resulted from studies of contracting behaviour and has been greatest in measurement of intraindustry transaction costs and relating them to vertical integration among firms. But NIE is at an early stage in the more complex empirical task of analysing relations between markets and prevailing institutions.
A NOTE ON THE ESTIMATION OF COBB‐DOUGLAS PRODUCTION FUNCTIONS WHEN SOME EXPLANATORY VARIABLES HAVE ZERO VALUES
Authors: Battese George E.
Published: November 2008

Cases of zero‐values of some input variables in production studies often arise in agricultural economics. By using a dummy variable, associated with the incidence of the zero observations, the appropriate parameters of Cobb‐Douglas production functions can be estimated in an unbiased way.
MARKETING, AGRICULTURE AND ECONOMICS: PRESIDENTIAL ADDRESS
Authors: Ritson Christopher
Published: November 2008

This article is concerned with the subject of agricultural marketing and how it has developed down a different, and longer, path than modem business marketing. It is argued that the applied economics character of agricultural marketing can be elucidated by viewing the controllable variables of the marketing mix in the context of economic theory; and that the traditional subject matter of agricultural marketing can be placed in a modern business marketing framework,

It is suggested that the increasing propensity to view agricultural marketing as applications of modern marketing principles to agricultural and food businesses is a consequence of the evolution in patterns of demand for food products; and that a degree of convergence between marketing and agricultural marketing is partly associated with marketing ‘maturing’ as a subject, embracing issues and approaches long familiar to agricultural marketing.
MEASURING OLIGOPOLISTIC DISTORTION IN THE UK FROZEN POTATO PRODUCT SECTOR: A CALIBRATION MODELLING APPROACH
Authors: Tiffin A L , Dawson P J
Published: November 2008

This paper compares competition levels in the UK and Dutch frozen potato product sectors over the period 1980 to 1992 using a calibration model and conjectural variation analysis. We also obtain estimates of the trade and welfare effects of oligopolistic distortion in the UK frozen potato product sector. Results show that oligopolistic distortion in the UK raises Dutch imports by 25,700 tonnes in 1991/92 and by an annual average over the whole period of 13,000 tonnes. Further, the deadweight loss due to oligopolistic distortion in the UK is increasing to a level of £32.1m in 1991/92 which comprises of a fall in UK consumers' surplus of £170.2m and increases in UK and Dutch processors' profit of £131.9m and £6.2m respectively. We conclude that the trade and welfare costs of the UK sector's oligopolistic behaviour are high and increasing.
PRODUCTION ANALYSIS: A NON‐PARAMETRIC TIME SERIES APPLICATION TO US AGRICULTURE
Authors: Chavas Jean‐Paul , Cox Thomas L.
Published: November 2008

The paper investigates production analysis using non‐parametric methods. When all data are not consistent with profit maximisation, we propose a method relying on the concept of ‘effective inputs and outputs’ to evaluate technology and economic behaviour. The approach is illustrated in a time series application to US agriculture. The results provide empirical measures of productivity growth. They also generate useful information on the ‘bias in technical change’ in US agriculture.
A REVIEW OF THE ARTS OF ESTIMATING PRICE‐RESPONSIVENESS OF FEED DEMAND IN THE EUROPEAN UNION
Authors: Peeters Ludo , Surry Yves
Published: November 2008

This paper reviews the ‘state of the art’ of estimating price‐responsiveness of the demand for feed ingredients in the European Union (EU). After a brief description of the main characteristics of the EU feed market, several modelling approaches are discussed. These have been categorised into three broad groups: (i) synthetic approaches; (ii) linear programming (LP) approaches; (iii) econometric approaches. Also, some recent extensions of the ‘traditional’ econometric approach are briefly reviewed, such as the construction of feed demand balances using incomplete information and the measurement of price‐induced technical change. Finally, a number of methodological and practical issues are raised.
COSTLY YIELD VERIFICATION, MORAL HAZARD, AND CROP INSURANCE CONTRACT FORM
Authors: Hyde Charles E. , Vercammen James A.
Published: November 2008

The theories of hidden‐action, both moral hazard and costly state verification, are drawn on to analyse crop insurance contract structure. The hidden‐action moral hazard model allows few clear predictions regarding optimal contract form. In particular, the conditions under which actual contracts are optimal are not clear. Posing crop insurance as a problem of costly yield verification, however, results in optimal contracts with familiar properties ‐ a deductible indemnification if and only if yield is verified, and indemnification only when yield is low. However, these contracts require full insurance across low yield states, while actual contracts typically involve co‐insurance. This model is then generalised to incorporate hidden‐action moral hazard, and it is shown that optimal contracts then require co‐insurance. Thus, this model reflects the essential features of actual contracts, suggesting that recognising the incentives for misreporting and for insurers to economise on yield verification costs will potentially result in a better understanding of crop insurance.
The Measurement of Average Farm Size
Authors: Lund Philip , Price Roger
Published: November 2008

Comparisons are regularly drawn between the average sizes of farms in particular countries or regions and in different farm‐type categories. Indeed average farm size is often considered to explain (or create expectations of) changes or differences in technical or economic efficiency through time or between countries. There are, however, a number of issues involved in specifying what is meant by a farm and in choosing a suitable measure of farm size. These are examined prior to a discussion of various measures of average size, one of which (the mid‐aggregate point) is described in some detail. The measures are illustrated with reference to agricultural holdings in England and in the Member States of the European Union.
The Determination of Agricultural Wage Rates in Bangladesh
Authors: Palmer‐Jones Richard , Parikh Ashok
Published: November 2008

The impact of the ‘green revolution’ on wages has been a contentious issue. This paper uses the cointegration and error correction approach to identify long and short‐run relationships between prices, agricultural production and wages of agricultural labourers in Bangladesh, test for homogeneity, test for weak exogeneity with the Johansen‐Juselius methodology, test for a structural break, and estimate the long and short‐run elasticities of nominal wages with respect to rice prices.

We find that agricultural wages have strong positive long run relationships with rice prices, manufacturing wages and agricultural productivity. The short run response of wages, estimated consistently with these longer run relationships, to rice prices is small, highlighting the vulnerability of the rural poor to sudden rises in rice prices, even though in the longer run nominal wages respond sufficiently to rice prices. Policy can promote growth of agriculture and manufacturing but should also mitigate the short run food insecurity of agricultural labourers.
The Socio‐Economic Effects of the Countryside Stewardship Scheme
Authors: Harrison‐Mayfield L. , Dwyer J. , Brookes G.
Published: November 2008

The Countryside Stewardship Scheme was launched by the Countryside Commission in 1991 and before its transfer to the Ministry of Agriculture in April 1996, underwent a socioeconomic evaluation. This study looked at the impact on income and employment both on the farm and in the wider local and national context, using a stratified sample survey in conjunction with national and regional input‐output models. Case study areas were chosen in Norfolk, Devon and Derbyshire, and by interviewing local businesses, and analysing farm accounts, a clearer picture of the spatial distribution of income and employment effects was obtained.

In overview, the quantitative effect of the scheme on income and employment appears negligible or mildly positive: however, there are marked distributional effects. The negative impact is most likely to be dissipated in larger urban centres and among capital‐intensive agricultural supply and food industries, while the positive effects tend to be concentrated in rural areas.
Processing Technology, Market Power and Price Transmission
Authors: McCorriston S. , Morgan C. W. , Rayner A. J.
Published: November 2008

This paper focuses on the extent to which price changes occurring at the farm‐level are transmitted to the retail sector. A price transmission elasticity is derived which is shown to depend on the degree of market power in the food industry and the nature of the food industry's processing technology. The offsetting role of the processing technology and market power in determining the extent of price transmission are highlighted. A case‐study reports values for the price transmission elasticity for the US beef and pork sectors.
A Note on Imperfect Monitoring of Agri‐Environmental Policy
Authors: Choe C. , Fraser I.
Published: November 2008

In this note the impact of imperfect compliance monitoring on the implementation of agri‐environmental policy is analysed. A principal‐agent model is used to demonstrate how imperfections in the monitoring process lead to higher levels of incentive payments to ensure compliance. This means that less accurate compliance monitoring results in higher social costs from policy implementation. Technical enhancements in the accuracy of compliance monitoring will therefore lead to a reduction in social costs. This is an important result with significant implications for the design and implementation of agri‐environmental policy.
Measuring and Explaining Technical Efficiency in UK Potato Production
Authors: Wilson Paul , Hadley Dave , Ramsden Stephen , Kaltsas Ioannis
Published: November 2008

Technical efficiency in UK maincrop potato production is measured through the estimation of a stochastic frontier production function using cross section data for the 1992 crop year. Variations in the technical efficiency index across production units are explained through a number of managerial and farm characteristic variables following Battese and Coelli (1995). The technical efficiency index across production units ranges from 33 to 97 per cent. Irrigation of the potato crop and storage of potatoes after harvest are positively correlated with technical efficiency. Number of years of experience of growing potatoes, small scale farming practice and chitting of seed potatoes are all negatively correlated with technical efficiency.
Ex Ante Research Evaluation and Regional Trade Flows: Maize in Kenya
Authors: Mills Bradford F.
Published: November 2008

Public sector investment in agricultural research is an important component of developing country efforts to bolster staple cereal production in the face of rapid population growth. This paper uses a spatial equilibrium model to evaluate the potential impact of maize research in six regions of Kenya. The application highlights the important role of research in meeting future food needs, as well as the geographic variability of producer and consumer benefits from technology and trade policy options. Despite significant research induced supply shifts, Kenya will require additional production increases of 1.5 to 2 per cent per year to meet stated goals of self‐sufficiency in maize production with open markets. Import restrictions can ensure self‐sufficiency and generate producer welfare gains at greater expense to the majority of Kenyans who are net consumers of maize. In the debate over trade policy, public sector investments in maize research should be seen as a potential mechanism to compensate producers for welfare losses associated with market liberalisation.
Testing for Vertical Economies of Scope: An Example from US Pig Production
Authors: Azzam Azzeddine M.
Published: November 2008

A firm operating in two or more stages of production is said to have vertical economies of scope if the costs of jointly producing two or more vertically adjacent products is less than the costs of producing the products independently. As important as those economies are in theory, they have so far received no empirical treatment compared to scope economies in multi‐output production, especially in agriculture. This paper tests for vertical economies of scope in US pig production, using 1990 firm‐level cost data. Based on the Wilcoxon matched‐pairs signed‐rank test, no evidence of vertical economies was found, meaning that it was no more or less costly to produce pork in a farrow‐to‐finish setting than with separate feeder‐pig production and finishing.
An Economic Analysis of Tenure in East Anglia Using Qualitative Data
Authors: Vaze Prabhat
Published: November 2008

For many years, the most commonly used data concerning tenure in England and Wales has dichotomised between two types: tenancy and owner occupation. However, other contract forms have become highly popular and landowners and farmers are faced with more than a simple two‐way choice. This paper focuses on the share farming agreement which has proven to be very popular in East Anglia. Economic models have shown the efficiency of choosing share agreements when some market imperfection exists. In particular, when there are unmarketed inputs into the production process and two agents have a complementary distribution of these inputs, a contract which apportions the profits of farming ‐ such as the share arrangement ‐ would prove efficient given the presence of transactions costs. The endowments of the unmarketed input is often unobservable and agents only have subjective indicators of their distribution in a prospective contractor. The paper explores this qualitative feature of share farming. The research uses results from tape‐recorded interviews to highlight the existence of unmarketed inputs and the importance farmers attach to accurately assessing this variable. The qualitative analysis also provides evidence that contract transactions costs are reduced through reputation building and signalling.
The Economy‐Wide Effects of the BSE Crisis: A CGE Analysis
Authors: McDonald Scott , Roberts Deborah
Published: November 2008

A Computable General Equilibrium (CGE) model of the UK economy is used to investigate the economy‐wide effects of the BSE crisis. The impact of two alternative government strategies for dealing with the crisis, support buying and subsidy payments, are compared with the scenario of no government intervention. The results indicate that whilst the macroeconomic consequences of the crisis may be small in percentage terms, substitution and resource re‐allocation effects are substantial. In particular, the impact spreads far beyond those directly impacted by the shock with some sectors of the food industry benefiting. Moreover the alternative government strategies have very different macro economic and intersectoral effects. It is argued that the results support the further development of the model and underlying database.
SURFACTANT PROMOTION OF THE INHIBITORY EFFECTS OF CUPRIC GLUTAMATE ON THE DINOFLAGELLATE ALEXANDRIUM1
Authors: Li Hao , Miao Jinlai , Cui Fengxia , Li Guangyou
Published: November 2008

We studied cupric glutamate as a novel algicide for marine harmful algae and hexadecyltrimethyleamine bromide (HDTMAB) as an accelerant. Cupric glutamate had an excellent ability to inhibit the growth of Alexandrium sp. LC3, but the inhibition efficiency did not increase with higher cupric glutamate concentration. The studies on the inhibition ofAlexandrium sp. LC3 by cupric sulfate or cupric glutamate showed that cupric glutamate had a higher inhibition rate than cupric sulfate (P < 0.05). HDTMAB could significantly enhance the inhibition by cupric glutamate (P < 0.05). Ultrastructural changes of Alexandrium sp. LC3 under cupric sulfate, cupric glutamate, and cupric glutamate–HDTMAB combined treatment were studied with TEM. Under these stresses, the integrity of the cell plasma membranes (cell plasma membrane, chloroplast and mitochondria membranes) was destroyed. The degree of damage under cupric glutamate–HDTMAB combined treatment was more severe than under the other stresses. These results indicated that mechanistically cupric glutamate inhibits algal growth by destroying the cell membranes, and that HDTMAB promotes this process, which induced mass extravasation of intracellular components and more copper ion entry into the plasma.