Do input subsidy programs “crowd in” or “crowd out” commercial market development? Modeling fertilizer demand in a two‐channel marketing system

Many governments in developing countries distribute fertilizer at subsidized prices in an effort to stimulate small farmers' agricultural productivity and food security. Prior fertilizer demand studies have largely failed to account for the effects of government programs on farmers' commercial purchases. Using a double hurdle model and nationally representative rural household panel data in Zambia, we distinguish between these sources and measure the contemporaneous "crowding in" and "crowding out" effects of government input programs on commercial fertilizer sales. Where the private sector is relatively active and average wealth is higher (areas seemingly more likely to be targeted by government programs), results indicate that subsidies have substantially crowded out the private sector, in some cases to the point that such programs could actually lower overall fertilizer use. On the other hand, in poorer areas where the private sector is relatively inactive, subsidies help to generate demand and crowd in private sector retailers. Empirical studies explicitly modeling farmers' fertilizer purchase behavior within a dual marketing framework can provide important insights for agricultural policy discussions in developing countries.     

Human behavior and the use of experiments to understand the agricultural,resource, and environmental challenges of the XXI century

The use of laboratory¹ experiments in economics, and their later deployment in the field as a tool for exploring how actual decision‐makers respond to information, incentives or institutions has brought a revolution to how we model economic systems, and design policies for them. This new century will bring challenges for the study of agriculture, natural resources and the environment, where it will be necessary to have a better understanding of human behavior, in a world where climate on the one hand, and land, labor and food markets are ever more unstable. This article reviews the intellectual history of a rich dialogue between theory and experiments with a particular focus on its relevance for agricultural, resource and environmental issues. Special attention will be given to the case of common‐pool resources where this dialogue between models, field work and laboratory experiments continues to provide a rich cross‐fertilization for the advance in the understanding of the economic systems that governs these resources. I will close by arguing that agricultural, environmental and resource economists will have to take part of this behavioral revolution by embracing experiments in their teaching, their research and their policy design.     

The disposition effect in farmers’ selling behavior: an experimental investigation

The identification of the optimal selling time of stored goods is among the most essential economic decisions on a farm. Beyond monetary aspects, behavioral factors influence farmers’ selling decisions. In financial economics, the disposition effect is a commonly observed phenomenon. It describes the fact that investors hold losing stocks too long, while they sell stocks that gained in value too early. In the context of agriculture, this behavioral bias has not been analyzed thoroughly yet. To close this research gap, we conducted an incentivized online experiment with 112 farmers from Germany. The experimental design was based on a well‐proven experiment from financial economics and adapted to an agricultural decision context where stored goods must be sold. Farmers were provided information on the uncertain price developments. In addition, lotteries were conducted to elicit farmers’ risk attitude, probability weighting, and loss aversion. Results indicate that there is a robust disposition effect in farmers’ selling behavior. Furthermore, more loss‐averse farmers exhibited a higher realization of gains.     

农户风险和时间偏好对森林碳汇经营意愿的影响分析

基于农户调查数据,利用实验经济学方法测量农户的风险偏好类型和时间偏好系数,根据行为经济学理论和Ologit模型研究风险偏好和时间偏好对农户森林碳汇经营意愿的影响。结果表明:与风险厌恶者相比,风险中性者对森林碳汇经营意愿有显著负影响;时间偏好对森林碳汇经营意愿有显著负影响。即风险厌恶者和时间偏好低的农户更愿意开展森林碳汇经营项目。     

Australasian environmental economics: contributions,conflicts and ‘cop‐outs’*

Australian and New Zealand environmental economists have played a significant role in the development of concepts and their application across three fields within their subdiscipline: non‐market valuation, institutional economics and bioeconomic modelling. These contributions have been spurred on by debates within and outside the discipline. Much of the controversy has centred on the validity of valuations generated through the application of stated preference methods such as contingent valuation. Suggestions to overcome some shortcomings in the work of environmental economists include the commissioning of a sequence of non‐market valuation studies to fill existing gaps to improve the potential for benefit transfer.     

Chamberlin Meets Ciriacy‐Wantrup: Using Insights from Experimental Economics to Inform Stated Preference Research

Many studies that use stated preference (SP) surveys to estimate the demand for private or public goods can be characterized as experiments, although they are not routinely labeled as such. This paper draws from the broader experimental economics literature to provide insights for SP practitioners and researchers, particularly as it pertains to survey development, mechanism design, external validity, data analysis, and the dissemination of findings.     

林业企业内部审计工作存在的问题与对策

随着全球经济一体化的发展和林业企业经济的发展壮大,内部审计工作在企业中发挥着越来越重要的作用。在新环境、新机遇、新挑战面前,林业企业内部审计工作要改革创新,拓宽思路,明确定位,完善内控体系,当好“管理参谋”,才能“强身健体”,确保林业企业经济运行有序、健康发展,提高企业经济效益。     

On the Role of Risk Versus Economies of Scope in Farm Diversification With an Application to Ethiopian Farms

This article investigates the economics of farm diversification. The analysis assesses economies of diversification using a certainty equivalent measure. It identifies two components: one associated with expected income, and one associated with risk exposure. This integrates two lines of research explored in previous literature: economies of scope and risk management. We examine the roles played by complementarity, scale and concavity effects in economies of diversification. The approach is applied to diversification decisions made on Ethiopian farms, with a focus on production uncertainty. The econometric analysis finds large complementarity benefits, providing incentives to diversify. But this is tempered by (non)‐concavity effects that provide incentives to specialise. The analysis also documents how risk affects diversification, including both variance and skewness effects. It provides new insights on economic tradeoffs between farm diversification and specialisation.     

Home‐grown food and the benefits of sharing: The “intergenerational pact” in postsocialist Moldova

The policy literature on postsocialist Europe tends to frame smallholders' practices of food self‐provisioning and sharing as driven by necessity and proposes land consolidation to increase productivity and efficiency. However, these practices generate nonfinancial benefits, which need to be accounted for. In this paper, I test the socio‐economic relevance of these practices in the Republic of Moldova, the country with the highest density of farming households in Europe and whose government has embraced the rural modernization agenda to integrate into the EU economic space. I carry out quantitative estimates using the household budget survey and complement the results with qualitative insights from an original smallholder survey. I find that food self‐provisioning and sharing are positively related to subjective well‐being and that there is an “intergenerational pact,” with home‐grown food flowing from late‐adulthood smallholders to urban‐based young families and the vulnerable elderly. A counterfactual analysis shows that poverty and inequality would be higher in the absence of donated food, especially in urban areas. The preservation of smallholder farming through widespread access to land could thus help fight poverty and provide social benefits vis‐à‐vis land consolidation.     

Afterword: Reflections on “Capitalist development in hostile environments”

This afterword places the long essay “Capitalist Development in Hostile Environments” in the context of Giovanni Arrighi's overall intellectual trajectory. It highlights several crucial theoretical and methodological contributions to debates, including on the relationship between proletarianization and capitalist development, and between labour migration, class formation, and class conflict; on the interrelationship between “internal” and “external” processes in the explanation of social change; and on the distinction between economic progress, “catching‐up” development, and popular welfare. It concludes with a brief discussion of ways in which Arrighi's later theorization of the longue durée evolution of historical capitalism provides a robust conceptual framework for ongoing studies of proletarianization and capitalist development.