Risks and spatial connectivity evidence from food price crisis in rural Indonesia

This paper examines the impact of the agricultural commodity price surge globally experienced in 2007/2008 and thereafter on income growth of agricultural producers and non-producers using recent panel data from Indonesia. First, during this period, producers experienced significantly higher earnings and total income growth than non-producers (narrowing their income gap). Second, the negative effect on non-producers’ real incomes was smaller in spatially well-connected areas, where, to mitigate the impact, private transfers (such as remittances) as well as employment incomes increased among non-producers. In contrast, government programs did not effectively cushion the income shock. Therefore, informal insurance was more effective than formal government-funded social protection programs to mitigate the crisis shock.     

Direct Labor Market Effects of Unemployment Insurance

It has been established that relatively high income families receive a disproportionately large share of UI benefits. Little information on the distribution of costs by income class is available, but it is quite possible that the upper income groups may also bear a disproportionately large share of the costs. More empirical research is needed before the redistributive effects of UI can be known with any degree of confidence. There is little argument about the desirability on income mainlenance grounds of extending Unemployment insurance benefits in a recessionary period, all other things being equal. U1 is quite efficient as an income maintenance tool for covered workers. With respect to the unemployment problem, though, it is feared by some that the program goes too far in maintaining the incomes of covered workers, and as a result any extension of UI benefits will aggravate the unemployment problem. The evidence presented here suggests that fears of a major increase in unemployment as a result of such changes are largely unwarranted. However, extended UI benefits would appear to have some small, nontrivial adverse impact on unemployment. Finally, it seems that UI's income distributional impact has been portrayed unjustly as pro-rich. It may be that income is transferred through the UI system from the relatively well-to-do to the relatively poor. There is no scientific way of bringing these considerations to bear in deciding whether or not to restructure the unemployment insurance system. This question can be answered only by invoking fundamental value judgments to decide how sociely would be better off, and I would not presume here to offer my own. This paper will have served its purpose if it has provided the basis for a more informed decision.     

Preliminary Evaluation of the HECM Reverse Mortgage Program

This paper describes and evaluates the Home Equity Conversion Mortgage (HECM) insurance demonstration, designed to encourage the development of private reverse mortgage programs by insuring lenders against the risks associated with new mortgage lending programs and with reverse mortgages in particular. The paper evaluates demand for the program by analyzing the attributes of participating borrowers, their properties and the types of payment options chosen. It also presents several observations regarding participation by the financial community in the HECM demonstration, required counseling and legal and regulatory issues that may hamper the growth and development of reverse mortgage programs in general.
The findings suggest strong demand for reverse mortgages among "house-rich, cash-poor" elderly homeowners, either to supplement inadequate current incomes or to provide a reserve against unexpected lump-sum expenses. The flexible design of the HECM program addresses a wide variety of borrower financial needs, even though it imposes higher costs on lenders and servicers. The continued growth of the program, however, is hindered by a shortage of qualified housing counselors in some areas, as well as by a variety of legal and regulatory barriers.     

Chinese consumers’ preferences for food quality test/measurement indicators and cues of milk powder: A case of Zhengzhou,China

Many food regulations focus on test/measurement indicators, such as hazard analysis and critical control points (HACCP) and traceability, etc. Other than these indicators, the food industry uses various cues such as product origin as indicators of product quality. However, in an environment where consumers’ confidence in food safety is low due to frequent food safety scandals, little is known about the efficiency of these test/measurement indicators and cues. This paper used the primary data collected in Zhengzhou (China) to estimate consumers’ preferences for test/measurement indicators and a new cue of “own farm” for milk powder. Our results show that country of origin is the most important cue attribute, followed by price and own farm. The importance of test/measurement indicators such as organic, traceability, and HACCP certification is relatively low. Also, the individual parameter estimates show that consumers’ preferences for test/measurement indicators currently in the market are weak and fragile. Interestingly, price has an inverse-U-shaped relationship with consumer utility, implying that Chinese consumers may perceive low-price milk powder as low quality. The results of this study provide important insight for regulatory authorities and the food industry to develop more effective policies and programs to improve consumer preferences for milk powder.     

Winning us with trifles: Adverse selection in the use of philanthropy as insurance

Research Summary: We study the use of corporate philanthropy as a form of reputation insurance, developing a formal model of such insurance to examine how the terms of insurance in equilibrium change under different assumptions about the firm and its stakeholders. We then test the predictions from this model in the U.S. petroleum industry and find that philanthropic donations offer insurance‐like benefits, but are also positively associated with subsequent oil spills—firms that give more, spill more—with this association being stronger for spills that are under firms’ control and in states with low civic capacity. These results are consistent with an adverse selection/moral hazard equilibrium and suggest that the use of philanthropy as reputation insurance may benefit firms at the cost of society. Managerial Summary: Firms that donate to social causes develop a reputation for being socially responsible, and are often given the benefit of doubt when negative information about them comes to light. But are philanthropic firms truly more responsible? We argue that firms that donate more may be more likely to do harm—those that expect to do harm later are likely to give more now, and those that know their reputation protects them may become less careful. Evidence from the U.S. petroleum industry is consistent with this argument, with firms that give more having more subsequent oil spills, but only the type of spills that are under the firm's control, and only in states where the firm faces weaker scrutiny.     

The rise of supermarkets and changing expenditure patterns of poor rural households case study in the Transkei area,South Africa

Since the late 1990s, the number of supermarkets in South Africa has been steadily growing. Due to a more effective and efficient management and procurement system, the supermarkets can benefit from economics of scale and sell food at a relative low price. In this paper, we present a case study of two villages in the Transkei area of South Africa. In these poor rural communities, the majority of households now buy their main food items from supermarkets rather than from local shops and farmers. While presenting an important step towards livelihood development and food security, these supermarkets form also a strong competitor for local agricultural sales. The supermarkets provide many food items at lower prices. With an increase in income, the households look for variety and exotism in their food products, and will most likely find this in the supermarkets, rather than the local stores. We argue therefore that development programs should focus on the local growers’ access to the supermarket procurement systems.     

Producer group participation in the trade adjustment assistance program for farmers before and after the American Recovery and Reinvestment Act of 2009

The Trade Adjustment Assistance for Farmers (TAAF) program was established in 2002 to help farmers adversely affected by surges in imports. The program has been underused by farmers and, as a result, the American Recovery and Reinvestment Act (ARRA) of 2009 redesigned the program by loosening the eligibility criteria and changing the structure of the cash assistance. This study examines the factors that incentivize producer groups to file petitions for the TAAF program and whether there exists a cross-program relationship between the TAAF and non-TAAF farm safety net programs in periods before and after the ARRA revisions. We find that, after the ARRA, participation in the program has more than doubled, but it is uncertain whether this increase in participation is a direct consequence of the ARRA revisions. In fact, results indicate that time-invariant characteristics of commodity groups are the most important factors of TAAF participation. We also find some evidence that incentives to mitigate negative price risk drove petitioning activities for the TAAF program before the ARRA. This is further confirmed by a cross-program analysis in which TAAF petitions increase when cash receipts decrease from the non-TAAF farm safety net programs that offer risk management schemes similar to that of the TAAF. After the ARRA, such a cross-program relationship is no longer observed. Indeed, the TAAF program after the ARRA subsidized producer training and business planning in response to import competition rather than simply providing a form of price insurance. This new focus might have substantially changed the drivers of participation.     

南京市中低收入家庭住房问题的研究

通过对南京市中低收入家庭进行界定，分析目前的居住状况及住房困难的影响因素。在借鉴国外解决中低收入家庭的成功经验基础上，结合南京市的具体情况，分析了南京市经济适用房和中低价住房的利弊，提出了针对性的解决方案和设想，以满足中低收入者的住宅需求。     

Understanding farmers’ valuation of agricultural insurance: Evidence from Vietnam

Agricultural index insurance offers smallholder farmers the potential to manage pervasive weather and environmental risks, and smooth income over time. Yet despite the potential benefits, take-up of index insurance has been largely disappointing. We employ a novel approach to investigate the reasons for low demand and we confirm that farmers systematically undervalue agricultural index insurance. We find that access to private transfers acts as a substitute for insurance demand, while membership of a farmer’s union helps explain why farmers value index insurance. Finally, we find that individual riskiness is positively related to willingness to pay for agricultural index insurance and interpret this as further evidence that, within the context of basis risk and lack of trust in insurers, farmers valuation of agricultural index insurance can be better understood through behavioural theories such as ambiguity aversion or prospect theory.     

Economic impacts of mobile versus fixed broadband

Broadband telecommunication service is growing rapidly and its economic impact is likely to vary considerably around the globe. Considerable interest is being shown in wireless broadband, especially in low income and rural areas. This study focuses on the direct effect (broadband penetration as an input), and separately, the productive efficiency effect of broadband (as an information network externality), using a model developed in Thompson and Garbacz (2007). Aggregate fixed and mobile broadband usage and their effect are analyzed and compared first on a sample of forty-three countries with sufficient data. The same models are used on samples of high income and low income countries. It is hypothesized that the rapid growth of broadband could have a stronger effect for low income countries and their initial levels of network development. Key variables are adjusted to a per household basis, using information on household size. Due to the endogeneity of key variables, instrumental variables are employed to estimate separate equations for mobile broadband and fixed broadband. Predicted values for these variables are used in the final equations in order to adjust for endogeneity and omitted variable bias. The results of the model estimated for the full sample indicate that mobile broadband has an important direct effect on GDP, but fixed broadband has an effect no different than zero. In the models with high and low income samples it is apparent that low income countries derive significantly more benefit from mobile broadband. Estimates from the Stochastic Frontier Model find mobile broadband to be a significant driver of growth via a reduction of inefficiency.     

Nutrition,agriculture and the global food system in low and middle income countries

The entire food value chain and diet of low and middle income countries (LMICs) are rapidly shifting. Many of the issues addressed by the nutrition community ignore some of the major underlying shifts in purchases of consumer packaged foods and beverages. At the same time, the drivers of the food system at the farm level might be changing. There is a need for the agriculture and nutrition communities to understand these changes and focus on some of their implications for health. This rapid growth of the retail sector will change the diets of the food insecure as much as that of the food secure across rural and urban LMIC’s. This short commentary contents that current research, programs and policies are ignoring these rapid dynamic shifts.     

Use of Public Transfer Programs and Privat Aid by Farm Workers

Legal status affects the use of public welfare and insurance and private assistance programs by families of farm workers. Families of unauthorized immigrants are more likely to use public medical assistance and less likely to use other public transfer programs than authorized immigrants and citizens. Unauthorized immigrants with young children in the United States are slightly more likely to use welfare, and welfare recipients are slightly more likely to have young children here.     

Creating customer knowledge competence: managing customer relationship management programs strategically

While increasingly demanding customers have prompted many firms to implement customer relationship management (CRM) programs, little is known about the internal processes that assist organization-wide learning about individual customer relationships. This research proposes a conceptual framework about the internal processes involved in creating customer knowledge competence, which allow firms to strategically manage their CRM programs. The framework is discussed based on five case studies of Canadian financial services firms that have implemented customer relationship programs.     

Impact of off-farm income on food security and nutrition in Nigeria

While the poverty implications of off-farm income have been analyzed in different developing countries, much less is known about the impact of off-farm income on household food security and nutrition. Here, this research gap is addressed by using farm survey data from Nigeria. Econometric analyses are employed to examine the mechanisms through which off-farm income affects household calorie and micronutrient supply, dietary quality, and child anthropometry. We find that off-farm income has a positive net effect on food security and nutrition. The prevalence of child stunting, underweight, and wasting is lower in households with off-farm income than in households without. Using a structural model, we also show that off-farm income contributes to higher food production and farm income by easing capital constraints, thus improving household welfare in multiple ways.     

河北省弱势群体灵活保障就业体系研究

构建和谐社会,必须关注社会弱势群体,我国政府已经把社会弱势群体就业作为政策关注的重中之重,而欧盟灵活保障模式在解决欧盟成员国就业问题上凸显了其有效性。根据对河北省弱势群体就业现状的分析,结合欧盟灵活保障就业模式,从强化教育培训体系、强化失业保险的功能、实施积极劳动力市场政策和建立健全社会对话机制等方面提出了构建河北省弱势群体灵活保障就业体系的对策。     

Does food security matter for transition in Arab countries?

Expectations are high that transition in Tunisia, Egypt, Libya, and Yemen will bring about more freedom, justice, and economic opportunities. However, experiences from other world regions show that countries in transition are at high risk of entering conflicts, which often come at large economic, social and political costs. In order to identify options on how conflict may be prevented in Arab transition countries, this paper assesses the key global drivers of conflicts based on a dataset from 1960 to 2010 and improved cross-country regression techniques. Results show that unlike in other studies where per capita incomes, inequality, and poor governance, among other factors, emerge as the major determinants of conflict, food security at macro and household-levels emerges as the main cause of conflicts in the Arab World. The high exposure of Arab countries to global food price variations proves to be an important source of vulnerability for a peaceful Arab transition. If history is also a guide to the future, improving food security is not only important for improving the lives of rural and urban people; it is also likely to be the key for a peaceful transition. The paper concludes with a set of policy options on how to improve food security at macro and household-levels, including safeguard mechanisms against excessive price volatility, export-led and pro-poor growth, the creation/expansion of social safety nets and targeted nutrition programs.     

Promoting child health and nutrition in India

This article discusses the reasons for poor child nutrition in India. Inadequate advice to mothers in poor rural communities about breast milk supplements could allow progressive erosion of breast feeding practices in the face of aggressive promotion from baby food manufacturers. Health workers need better information about possible supplements produced from locally available foods if nutrition education programs are to succeed. The author warns of the detrimental effect on nutritonal status of the deemphasis of school health nutrition programs in India, and points to the need for a nutrition component as an integral part of rural employment/development programs.     

Addressing food security in Africa via multiple livelihood strategies of women farmers

Because food insecurity is primarily a problem of low household incomes and poverty, and not just inadequate food production, projects and programs for food insecure African farmers which aim at increasing production of subsistence crops may be ineffective. Instead, government should look for ways to improve returns to farmers' resources in a broader context, which may include expanded opportunities for non-farm microenterprises and agricultural labor. This has been the conventional wisdom since the writings of Amartya Sen. Still unclear, however, are the implications of his thinking for the roles of African women farmers who are traditionally the food-crop producers in Africa and are often food insecure. Immediate expansion of income-earning activities such as cash cropping and non-farm microenterprises may not be possible for women in male headed households in many African societies where cash income is seen as part of the male domain. In addition, women farmers may need a long adjustment period to diversify their income sources fully because most African countries are at the early stages of structural transformation. Different developmental interventions, both in policy and in technology, are therefore needed to address food security and economic transformations in Africa in the short and long term.     

Measurement of competitiveness in smallholder livestock systems and emerging policy advocacy: An application to Botswana

Farm level cross sectional data of 556 randomly selected livestock producers were used to investigate the competitiveness of smallholder beef farmers in Botswana. The results show the presence of inefficiency, with about 74% of the variation in actual profit from maximum profit (profit frontier) between farms mainly arising from differences in farmers’ practices rather than random variability. Further the mean profit efficiency level of 0.58 suggests that there is a substantial scope to improve beef profitability in Botswana. Significant profit efficiency drivers include, among others, education, distance to market, herd size, access to information and access to income from crop production. Considering the importance of livestock sector for wealth creation and poverty eradication in the rural areas where poverty is more pronounced, there is a need for appropriate development strategies and policies directed towards addressing these factors. In particular there is need to invest in market infrastructure in order to improve market access, hence profit efficiency of smallholder livestock farmers.     

Household income,women’s income share and food calorie intake in South Western Nigeria

Current debates on the nature of intra-household preferences and resource control raises the question of how intra-household redistribution of income from men and women compares with increasing total household income as strategies for increasing calorie intake among low income households. I estimate calorie-income and calorie-women’s income share elasticities for a random sample of low income households from the rural areas of south western Nigeria. I find that calorie-income elasticity is positive and small, 0.194, but four times as large as calorie-women’s income share elasticity, suggesting that calorie intake is affected more by total disposable income than by its distribution pattern. Second, I find a small and negative effect of women’s income share on per caput calorie intake, −0.04, which is a rejection of the hypothesis that increases in women’s share of income will increase calorie intake and suggests that intra-household income re-distribution from men to women may not be an effective policy for increasing food calorie intake among households in the study area.