Worth the Risk? The Behavioural Path to Well‐Being

There is increasing interest in the ‘economics of happiness’, reflected in the volume of articles appearing in mainstream economics journals exploring the major determinants of self‐reported well‐being. We contribute by exploring the factors influencing how satisfied farmers are with their quality of life. We find that farm income, subjective perceptions relating to the adequacy of household income, debt, health and personal characteristics such as age and relationship status are significantly associated with farmers’ self‐reported life satisfaction. While significantly associated with farm income, farm structural variables such as farm size, farm type and the presence of a farm successor were not found to be significantly related with life satisfaction. Our results also suggest that farmers who are more risk averse enjoy significantly lower levels of both life satisfaction and farm income than their more risk seeking or risk neutral counterparts. We suggest that, in the same way that risk aversion inhibits farmers from making choices that could lead to an increase in their income, it may also constrain farmers (and the wider public at large) from engaging in certain types of behaviours that could lead to an increase in their self‐reported quality of life. Finally, we find that while farm income is significantly related to self‐reported life satisfaction, the direct correlation between these variables is weak, suggesting that farmer life satisfaction can be distinct from business success.     

Can women's self‐help groups improve access to information,decision‐making,and agricultural practices? The Indian case

Effective agricultural extension is key to improving productivity, increasing farmers’ access to information, and promoting more diverse sets of crops and improved methods of cultivation. In India, however, the coverage of agricultural extension workers and the relevance of extension advice is poor. We investigate whether a women's self‐help group (SHG) platform could be an effective way of improving access to information, women's empowerment in agriculture, agricultural practices, and production diversity. We use cross‐sectional data on close to 1,000 women from five states in India and employ nearest‐neighbor matching models to match SHG and non‐SHG women along a range of observed characteristics. We find that participation in an SHG increases women's access to information and their participation in some agricultural decisions, but has limited impact on agricultural practices or outcomes, possibly due to financial constraints, social norms, and women's domestic responsibilities. SHGs need to go beyond provision of information to changing the dynamics around women's participation in agriculture to effectively translate knowledge into practice.     

Organic‐ and Animal Welfare‐labelled Eggs: Competing for the Same Consumers?

To understand the market for sustainable foods, it is important to allow for heterogeneous preferences. However, most studies of consumer preferences for sustainable foods only investigate average consumer preferences. They do not take into account that some consumer segments attempt to purchase as much sustainable food as possible, others are almost indifferent to the notion of sustainable food, and still others consider sustainable food a complete hoax. The aim of this study is to explore the preferences for various types of premium eggs across three consumer segments. We conduct a choice experiment including 900 Norwegian consumers and perform a behavioural segmentation based on the frequency of organic food purchase. We find that the segment purchasing the most organic food is, as expected, willing to pay a significant premium for organic eggs over eggs displaying only enhanced animal welfare. However, most consumers, who only occasionally purchase organic products, are unwilling to pay more for organic eggs than for enhanced animal welfare eggs, suggesting diminishing marginal utility for additional attributes. We find that a third consumer segment attempts to avoid organic eggs, even when they cost the same as other eggs. Our findings suggest that organic products will be unsuccessful in acquiring a larger share of the market as long as most consumers are unwilling to pay a premium for organic products with all their cost increasing sustainable attributes over products that have only a single sustainable attribute, in our case enhanced animal welfare.     

Multidimensional poverty in Afghanistan: who are the poorest of the poor?

Taking a capability approach perspective, our paper aims at advancing our understanding of poverty in Afghanistan, and at identifying the most deprived, including persons with disabilities, in order to address the first Sustainable Development Goal to eradicate poverty in all its forms. We used data from a national survey carried out in Afghanistan in 2005. We calculated one index using two weights structures, the adjusted headcount ratio, part of the multidimensional poverty measures. Following a participatory process, we identified and validated 13 indicators clustered in seven dimensions of poverty, including three usually neglected dimensions. Findings suggest that exploring various domains of deprivation would better inform poverty eradication policies than an approach focused only on income. Our results also demonstrate that nearly all Afghan adults are deprived in at least one dimension and those residing in rural areas, from minority ethnic groups, women, elderly people and persons disabled at birth or of an unknown cause are the poorest of the poor. Efforts to improve well-being must acknowledge these inequalities so that public policies in Afghanistan aiming at alleviating poverty take these disparities into account, when facing a reduction in available resources.     

Rice productivity in Bangladesh: What are the benefits of irrigation?

Green Revolution technologies transformed Bangladesh’s agricultural system through the introduction of high-yielding rice and wheat varieties, chemical fertilizers and pesticides, and the expansion of tubewell-irrigated area, enabling crop production during the dry season. However, serious challenges continue to plague the agriculture sector, including scarcity of land due to high population density, unbalanced use of fertilizers and pesticides, and great variation in water supply across seasons – from drought to stagnant flood conditions. Further expansion of irrigated area – including through the continued development and improvement of surface water systems – is being eyed by Bangladesh’s Ministry of Agriculture to address many of the remaining challenges facing the country. However, such expansion is not without risks or consequences, and a careful analysis of who benefits from irrigation, and how, must guide development priorities.We examine plot-level data for rice production during Bangladesh’s three rice seasons – aus, boro, and aman – across a nationally-representative household survey in Bangladesh. While rainfall is the most important determinant of rice yield during aus and chemical inputs are most important during aman, access to irrigation has the greatest influence on boro rice yield during the dry season, particularly for the coastal south. The government of Bangladesh is planning massive investments in the southern region for the improved provision of surface water irrigation. The expected decline in groundwater, coupled with our econometric findings, suggests that expanding boro production in the south may not be a good strategy to promote, for the region. Whether brackish shrimp aquaculture can provide an equitable and sustainable livelihood alternative should continue to be a focus of research.     

Ride the trend: Is there spread momentum profit in the US commodity markets?

Some previous researchers have argued that trading strategies based on calendar spread time series momentum (STSM) can deliver significant returns (Szymanowska et al. 2014; Boons and Prado 2019), which, if true, is at odds with the efficient market hypothesis. These arguments however, do not exclude the unrealisable futures contract roll yield and are also affected by other empirical and statistical issues that may lead to misleading results. With more than 30 years of data, we investigate STSM in 22 US commodity futures markets. First, we assess whether past spread returns can predict future returns, a necessary condition for the existence of momentum. We find predictability to be very weak after correcting for the issues affecting prior research. Second, we implement STSM-based investment strategies. We compare STSM profits for individual markets and portfolios to profits generated by a simple long-only benchmark strategy that does not require any predictability. STSM does not generate returns statistically different from the benchmark trading strategy, with both strategies generating very low or negative returns. For the momentum to outperform the benchmark strategy, predictability should be three times larger than observed from real data, but would entail substantial downside risk. In sum, the empirical evidence indicates that returns from STSM-type strategies are illusive for the commodities and period studied. Our results strongly suggest that inclusion of unrealisable roll yield generates the illusion of profitable STSM trading strategies in previous research.     

A Holistic vs. an Attribute‐based Approach to Agri‐Environmental Policy Valuation: Do Welfare Estimates Differ?

Different economic valuation methodologies can be used to value the non‐market benefits of an agri‐environmental scheme. In particular, the non‐market value can be examined by assessing the public’s willingness to pay for the policy outputs as a whole or by modelling the preferences of society for the component attributes of the rural landscape that result from the implementation of the policy. In this article we examine whether the welfare values estimated for an agri‐environmental policy are significantly different between an holistic valuation methodology (using contingent valuation) and an attribute‐based valuation methodology (choice experiment). It is argued that the valuation methodology chosen should be based on whether or not the overall objective is the valuation of the agri‐environment policy package in its entirety or the valuation of each of the policy’s distinct environmental outputs.     

India's post‐green‐revolution agricultural performance: what is driving growth?

Following a period of poor performance in the 1990s, India's agricultural growth rate has reaccelerated in the 2000s. Some believe the reacceleration has been a product of intensified investment, which in turn has spurred yield growth. Others suggest it is because India's newly wealthy citizens have demanded greater product diversification. To examine these hypotheses, we use growth accounting techniques in conjunction with more complete agricultural production data than in past studies to construct state, regional, and national output, input, and total factor productivity quantity indexes, which can be decomposed into their underlying sources. Sectoral performance evaluation suggests that, since 1980, output growth has diffused away from the northern “grain belt” and toward high‐value agriculture in traditionally less‐productive regions. Productivity growth, rather than resource use, has accounted for these geographical and intensity shifts. The growth burst has not, as the literature has primarily argued, been uniquely explainable by yield growth or product diversification but by a variety of factors, including area expansion. For example, the contributions of irrigation technologies permitting double‐cropping have until now been largely ignored.     

Protester or non‐protester: a binary state? On the use (and non‐use) of latent class models to analyse protesting in economic valuation*

In the analysis of stated preferences studies, it is often assumed that protesting is a discretely measured item only occurring among those who are not willing to pay. However, various studies have recently shown that protest beliefs are as well held by respondents who state a positive willingness to pay (WTP). Using latent class (LC) models, we investigate the extent of heterogeneity with respect to protest beliefs among all respondents of two contingent valuation studies. The advantage of LC models is that classes of individuals are endogenously identified and no selection bias is introduced by ad hoc definitions of protesters. Further we investigate whether it is possible to identify a class of non‐protesters. Finding a group of pure non‐protesters could indicate how strongly stated WTP in the whole sample is affected by protest beliefs. For both samples, we find a class with strong protest beliefs but no pure non‐protest class. Overall, our results suggest that LC models might not be the first choice to determine unbiased WTP measures, but they provide valuable insights into the degree of protesting expressed by different groups and corresponding determinants of group membership.     

How do informal farmland rental markets affect smallholders’ well‐being? Evidence from a matched tenant–landlord survey in Malawi

We estimate the efficiency and equity returns to farmland rental markets in Malawi using a matched tenant–landlord survey of smallholder farm households in four districts. Our sample allows us to more fully observe the landlord side of the rental market, which is almost always missing in previous studies. Our results suggest that land rental markets promote efficiency by facilitating a net transfer of land to more productive farmers. We also find that land rental markets promote equity as conventionally defined in the land markets literature, that is, by transferring land from land‐rich households to land‐poor households, and from labor‐poor to labor‐rich households. However, our study identifies some important challenges for land rental markets in this context. First, we find that tenants in our sample are wealthier than their landlord counterpart on average in all dimensions other than landholding. In addition, most landlords report the motive for renting out their land as either the need for immediate cash, or the lack of labor and/or capital to cultivate the plot that was rented out. These findings align with concerns about potential “stress renting” by poor landlords and suggest the value of defining equity along a broader set of dimensions other than simply equalizing the distribution of farmland and labor.     

‘Integrated’ Rural Development Policy in the EU: a Team Too Faar?

‘Integrate’ Rural Development Policy in the EU: a Term Too Far? Since its introduction in the early 1980s for Mediterranean and some other regions, an ‘integrated’ approach to EU rural development policy has come to-be increasingly advocated. However, the precise meaning of the term is seldom made clear in official and other documents, which appear to have applied it in a variety of contexts and in a number of different ways, This article discusses and analyses some alternative interpretations of ‘integrated’ rural development policy, including considerations of finance (funding from more than one source), administration (policy design, approval, monitoring and evaluation being undertaken by a single agency), institutions (responsibility and coordination being shared between different departments and agencies) and the economics of efficiency (better balancing of costs and benefits, and the encouragement of desired complementarities). These different meanings may explain some of the confusion in the long-running debate over rural policy in the EU, and suggest the need for more careful language. However, the arguments do endorse the apparent direction of thinking at the November 2003 Salzburg conference on rural development, i.e. that improved policy will result from better defined objectives, a single EU fund for rural development, and territorial programming at a local or regional level. Les politiques européennes de développement rural ‘intégré’:un mot de trop? Depuis l'introduction de ce vocable, au début des années 80, à propos, entre autres, des régions méditerranéennes, il est de plus en plus courant d'entendre vanter les mérites d'une approche ‘intégrée’ des politiques de développement rural. Pourtant, la signification précise de ce terme n'est que rarement explicitée, que ce soit dans les documents officiels ou dans d'autres. Le mot semble avoir été appliquéà de nombreuses situations différentes et de toutes sortes de façons. On essaie id d'analyser les différentes interprétations qu'il est possible de donner à la notion d'intégration des politiques de développement rural, que ce soit en termes de financement (utilisation de plus d'une seule source de financement), d'administration (l'élaboration des politiques, la décision, le suivi, et l'évaluation se trouvant sous la responsabilité d'une agence unique), destitutions (partage des responsabilités et des tâches de coordination entre différents départements ministériels ou agences d'exécution), ou d'efficacitééconomique (meilleur équilibre entre les bénéfices et les coûts, souci de créer des complérnentarités). La polysémie du mot semble expliquer la confusion qui entoure depuis longtemps le débat sur la politique rurale dans l'Union européenne et cela implique la nécessité d'employer un langage plus précis. Aussi bien, ce point correspond à la ligne générale de pensée qui s'est manifestéà la conférence de Salzbourg en novembre 2003 sur le développement rural: pour améliorer la politique, il faut que ses objectifs soient mieux définis, qu'il existe un seul fonds européen pour le développement rural, et que la planification territoriale se fasse au niveau local ou régional. ‘Integrierte’ Politik zur Entwicklung des ländlichen Raums in der EU: Ein zu weit gefasster Begriff? Seitdem der integerierte Ansatz für die Politik zur Entwicklung des ländlichen Raums der EU in den frühen 1980er Jahren für den Mittelmeerraum und andere Regionen eingeführt wurde, wird er zunehmend befürwortet. Die Definition dieses Begriffs geht jedoch selten eindeutig aus amtlichen und anderen Dokumenten hervor, welche diesen Begriff scheinbar auf die verschiedensten Arten und in vielfaltigen Kontexten verwenden. In diesem Beitrag werden einige Alternativen hinsichtlich der Auslegung des Begriffs der “integrierten” Politik zur Entwicklung des ländlichen Raums diskutiert und analysiert. Hierbei werden Finanzierung (Finanzierung aus mehreren Quellen), Verwaltung (Politikentwurf, Zustimmung, Überwachung und Evaluierung durch eine einzige Agentur), Institutionen (gemeinschaftliche Verantwortung und Koordination von verschiedenen Abteilungen und Geschäftsstellen) und Effizienz (verbessertes Abwägen von Kosten und Nutzen sowie Förderung erwünschter Komplementaritäten) behandelt. Diese unterschiedlichen Begriffsinhalte sind möglicherweise ein Grund für die Verwirrung in der seit langem geführten Debatte zur ländlichen Politik in der EU und lassen eine umsichtigere Sprachwahl sinnvoll erscheinen. Die Argumente untermauern jedoch die vorherrschende Meinung auf der Salzburger Konferenz zur Entwicklung des ländlichen Raums im November 2003, d.h. dass klarer definierte Ziele, ein einziger EU-Fonds für die Entwicklung des ländlichen Raums sowie territoriale Programmentwicklung auf lokaler oder regionaler Ebene zu einer verbesserten Politik führen.     

Does Choice Context Affect the Results from Incentive‐Compatible Experiments? The Case of Non‐GM and Country‐of‐Origin Premia in Canola Oil

We seek to design and implement a WTP elicitation instrument closely resembling an actual grocery shopping experience. An incentive-compatible choice experiment is used to elicit values for a non-GM attribute and a country-of-origin attribute of Canola oil. The choice context is varied to assess whether revealed-preference choice experiments are affected by choice variety. A median premium for non-GM Canola oil is found to approximate C$0.45 or C$0.62/liter according to the choice variety context; different country-of-origin effects are also found as choice context varies. Hypotheses as to why these significant effects of choice contexts occur are suggested.
Nous cherchons à concevoir et à mettre en application un instrument de révélation de la VDP qui ressemble étroitement aux choix que fait un consommateur lorsqu'il effectue son marché. Nous avons utilisé une méthode expérimentale compatible avec les incitations des participants afin de découvrir la valeur accordée à deux caractéristiques de l'huile de canola: non génétiquement modifiée et étiquetée selon le pays d'origine. La liste des choix est variée afin d'évaluer si les préférences révélées sont influencées par la gamme de choix. La prime médiane de l'huile de canola non génétiquement modifiée est d'environ 0,45 $CAN ou 0,62 $CAN le litre selon les choix proposés. Différents pays d'origine figurent aussi dans cette liste de choix. Nous avons formulé des hypothèses quant aux raisons pour lesquelles la gamme de choix a des effets importants.