Economics and EconometricsAgricultural and Biological Sciences (miscellaneous)
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The American Journal of Agricultural Economics provides a forum for creative and scholarly work on the economics of agriculture and food, natural resources and the environment, and rural and community development throughout the world. Papers should relate to one of these areas, should have a problem orientation, and should demonstrate originality and innovation in analysis, methods, or application. Analyses of problems pertinent to research, extension, and teaching are equally encouraged, as is interdisciplinary research with a significant economic component. Review articles that offer a comprehensive and insightful survey of a relevant subject, consistent with the scope of the Journal as discussed above, will also be considered. All articles published, regardless of their nature, will be held to the same set of scholarly standards.
AbstractThe issues in establishing and administering a transfer of development rights program are discussed, and an hypothetical program is empirically analyzed. In the case study, administrative assignment of development rights and definition of development unit significantly affected the distribution of program costs. Full compensation to restricted landowners would have required widely fluctuating development right prices. Initial cost burdens varied with type of development as well as within development categories. Timing of development right supply and demand may create problems in the market. Although the TDR concept is promising, many practical difficulties remain.
Marcel P. Aillery, Robbin Shoemaker, Margriet F. Caswell
AbstractAgricultural production decisions can affect ecosystem function and environmental quality. Environmental restoration policies can, in turn, affect the profitability of the agricultural sector. A dynamic model of agricultural production, soil loss, and water retention in the Everglades Agricultural Area is developed to assess agricultural impacts under alternative water policy and land acquisition scenarios.
AbstractEffects of nonprovision of job benefits and desirable working conditions are examined empirically for a sample of Mexican‐American and illegal alien migrant agricultural workers. Welfare losses are identified in that the monetary value to workers of some absent benefits is greater than the cost to farm employers of providing the benefits. Workers' preferences for nonpecuniary benefits are also examined by socioeconomic characteristics. Illegal aliens exhibit equal or greater preference for fourteen of the fifteen nonpecuniary items under consideration.
We estimate the risk attitudes of a large sample of individuals from various fishing communities along the west coast of South Africa. Female fishers and rights holders are found to be more risk averse than their male counterparts, while rights holders are found to be less risk averse relative to subjects without fishing rights. Risk attitudes are found to be correlated with compliance with fisheries regulations. In particular, a greater degree of risk aversion translates into a reduction in compliance. Furthermore, in the case of gender, female fishers and rights holders are more likely to comply with fisheries regulations.
AbstractThis paper uses quadratic programming to calculate the variance‐efficient mean income path and associated lower income bounds and suggests a way to select an optimum farm plan under risk based on the farmer's own self‐assessed income‐risk preference function. An empirical example from a Midwest corn‐soybean farm is presented.
AbstractThe behavioral and stochastic cost frontier functions are applied to estimate cost inefficiency by farms. The behavioral approach satisfies most of the assumptions of dual cost function and the likelihood ratio test rejects the market efficiency hypothesis implying less than optimum use of manures, labor, and fertilizers. A suboptimal use is explained by holding size, education, credit, and subsistence needs. Small farms seem to be more efficient than large farms in the region. A measure of inefficiency based on a stochastic cost frontier approach confirms the results of the behavioral approach.
AbstractThis article analyzes the efficiency of the intra‐household allocation of female and male labor inputs in agricultural production. In a collective household model, spouses’ optimal on‐farm labor supply is such that the marginal rate of technical substitution between male and female labor is equated over different crops. Using the Uganda National Household Survey 2005/06, we test whether this condition holds by estimating production functions and controlling for endogeneity using a method proposed by Gandhi, Navarro, and Rivers (2009). We find that women are less productive than men, that there is more female labor input on low productivity parcels, and that men are relatively more productive on female‐controlled plots compared with male‐controlled plots. Total farm output could be higher and Pareto improvements could be possible if male labor was reallocated to female‐controlled plots and/or female labor was reallocated to male‐controlled plots.
AbstractThis article extends the current literature on estimating the labor supply function in agriculture by providing a different method to derive the shadow wage and shadow income. The method is based on the observation that the shadow wage is the marginal product of labor at the optimal point of both farm and household production functions. Thus, under certain assumptions on the functional form of the production functions, both the shadow wage and shadow income can be derived without estimating the production function. Using a sample of Vietnamese farmers, the results from the new method are shown to be consistent with the theory.
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