A new land rent theory for sustainable agriculture
In: Land use policy: the international journal covering all aspects of land use, Band 55, S. 222-229
ISSN: 0264-8377
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In: Land use policy: the international journal covering all aspects of land use, Band 55, S. 222-229
ISSN: 0264-8377
In: Prace Naukowe Uniwersytetu Ekonomicznego we Wrocławiu, Heft 403
ISSN: 2392-0041
There is a consensus that farmers are subject to farm price-cost squeeze (PCS) when commodity prices fall and costs of production rise long-term. Willard Cochrane was the first to examine this phenomenon, introducing the notion that farmers are on a market treadmill. PCS is still a principle economic problem in agriculture touching farms in all over the world. It results from flexible prices but also from monopsony structures where recipients of commodities seize the opportunity of suboptimal pricing. Many studies indicate increasing retail farm price spreads but this lacks empirical studies on the effects of different types of subsidies on PCS. This work attempted to model EU Common Agricultural Policy (CAP) impact on PCS using the Constant Elasticity of Substitution (CES) production function, specified as in most CGE models. However, the authors tested the assumption of flexible prices reacting to changes in productivity. This approach is novel, while supported with an input-output analysis used to precisely decompose price and volume (productivity) effects at the level of a FADN representative farm. The results help to shape CAP shedding light on the present treadmill mechanism and showing that provision of public goods may be a remedy for market imperfections, whereas decoupled payments have the opposite influence.
BASE
There is a consensus that farmers are subject to farm price-cost squeeze (PCS) when commodity prices fall and costs of production rise long-term. Willard Cochrane was the first to examine this phenomenon, introducing the notion that farmers are on a market treadmill. PCS is still a principle economic problem in agriculture touching farms in all over the world. It results from flexible prices but also from monopsony structures where recipients of commodities seize the opportunity of suboptimal pricing. Many studies indicate increasing retail farm price spreads but this lacks empirical studies on the effects of different types of subsidies on PCS. This work attempted to model EU Common Agricultural Policy (CAP) impact on PCS using the Constant Elasticity of Substitution (CES) production function, specified as in most CGE models. However, the authors tested the assumption of flexible prices reacting to changes in productivity. This approach is novel, while supported with an input-output analysis used to precisely decompose price and volume (productivity) effects at the level of a FADN representative farm. The results help to shape CAP shedding light on the present treadmill mechanism and showing that provision of public goods may be a remedy for market imperfections, whereas decoupled payments have the opposite influence.
BASE
In: Institute of Agricultural And Food Economics, Multiannual Program Reports 2011-2014, No. 62.1
SSRN
In: Land use policy: the international journal covering all aspects of land use, Band 107, S. 104646
ISSN: 0264-8377
In: Diaspora Studies: journal of the Organisation for Diaspora Initiatives (ODI), Band 15, Heft 4, S. 329-355
ISSN: 0976-3457
Abstract
In this study, we examined different models for the motivation of the Iranian diaspora to send remittances to Iran, with and without governance indicators, to analyse the impact of economic factors and governance indicators on remittances. The results based on the generalised method of moments (GMM) method show that the income level of the origin and host country had positive and significant effects on the diasporas' motivation for remittances to Iran. Also, Iran's real exchange rate has a negative impact on remittances, whereas the interest rate differential is positive. The results confirm that the quality of governance and its indicators are essential factors for remittances. Overall, the macroeconomic conditions, along with good governance in Iran, have influenced remittances. Between investment and altruistic motives, altruism has been the primary motivation of remittances due to the lack of good economic and governance conditions in Iran during the years under review.