Household adoption behaviour of improved soil conservation: the case of the North Pare and West Usambara Mountains of Tanzania

The mountains in the northeastern part of Tanzania have been experiencing declining soil fertility and severe soil erosion due to increased cultivation and other factors attributed to population pressure. This study gives the main results of an analysis of household adoption behaviour towards the use of improved soil conservation measures. An interdisciplinary analytical framework for analyzing household adoption behaviour is presented. The framework links three components of the adoption decision process: the perception of the erosion problem, the decision to use improved conservation measures and the level of investment or effort devoted to soil conservation among adopters. Data collected from a random sample of 300 heads of households was used to estimate logit models of perception of the erosion problem and of adoption of improved conservation measures, and a Poisson regression model of effort devoted to conservation. The results show that participation in promotional activities of soil and water conservation (SWC) programmes influences the adoption decision process at all three stages. Also, ranking of soil erosion as the priority problem in agricultural production, participation in labour-sharing groups and having off-farm income influence the willingness and ability to use improved soil conservation technologies and the level of soil conservation effort.     

Measuring the Economic Effects of Competition Law Enforcement

Summary  Together with a move from a rules-based legal approach to a more economic approach in competition cases, the economic effects of competition law enforcement have received increasing attention. Measuring these effects is important for external accountability of the Competition Authority, for quality control of its decisions and for evaluating the effectiveness of the competition law. This raises many issues in measurement, including the choice of counterfactual, the choice of effects to be measured, and the proper use of available data. The papers in this Special Issue of De Economist discuss these and related issues, based on a broad range of experience in competition law enforcement.      

Environmental problems and policy in the Single European Market

The paper analyzes the direct and indirect environmental impacts of the completion of the Single European Market, both internally and with respect to the Rest of the World. Moreover, the principles of environmental policy are described. The main conclusion is that if the European Community and the member states develop effective and efficient policy instruments the positive effects of the completion of the Single Market could substantially outweigh the negative impacts.     

Interconnected games and international environmental problems

The purpose of this paper is to introduce the concept of interconnected games and to show its relevance for modeling international environmental problems. It is argued that an interconnected game approach to international environmental problems may enhance cooperation and provide an alternative to the use of financial side payments to induce countries to cooperate. Two types of interconnected games are distinguished in this paper, i.e. direct sum games and tensor games. In the former all the constituting isolated games are games in strategic form and in the latter they are repeated games. In both cases the interconnected game can be interpreted as a multiple objective game, but only the setting where a trade-off is made for the vector-payoffs is considered. In addition to the formal definition of these types of interconnected games, some elementary results concerning Nash equilibria of such games are derived.Folmer and v. Mouche: Landbouwuniversiteit Wageningen, Postbus 8130, 6700 EW Wageningen, The Netherlands; Ragland: University of Colorado at Boulder, Boulder, Colorado 80309-0256, U.S.A. An earlier version of this paper was presented at the EAERE conference in Stockholm, June 1991. The authors appreciate comments made by conference participants and journal referees.     

Derivative financial instrument use in Australia

This paper examines the relation between derivatives use and financial characteristics of Australian industrial and mining firms. The firm characteristics proxy for financial distress, tax losses, managerial ownership, growth opportunities, the ability to generate operating cash flows and liquidity. We also control for firm size, dividends and exposure to foreign exchange risk. The results show that firm size and leverage are the main explanatory variables for derivative use for both industrial and mining firms     

Risk-matching behavior in microcredit group formation: evidence from northern Ethiopia

Theoretical models on group lending assume the formation of groups of homogenous risk types. Recent theoretical and empirical findings challenge this view arguing that when markets for insurance are missing, risk homogeneity may not hold any more and risk heterogeneity can be the optimal outcome. Using data from an MFI in Tigray (Ethiopia), this article examines the homogeneity hypothesis and reflects on implications for repayment. No evidence is found that supports risk homogeneity, even accounting for matching frictions. However, we also do not find an explicit link between the presence of risk heterogeneity and side-payments due to missing insurance as suggested in the literature. Instead, other trust-based social networks seem to underlie heterogeneity. Such social networks are often synchronized with credit groups and influence the probability of repayment under heterogeneity. The implication is that successful repayment rates in group lending need not arise only under risk homogeneity but can also arise under risk heterogeneity. Heterogeneity may also serve to bridge missing insurance markets in poor rural environments. MFIs therefore need to consider such local conditions when designing their lending schemes.     

The impact of the exchange rate system on the effectiveness and implementation of stabilization policy in The Netherlands

Summary An economic model is presented with as the most important features a parameter indicating the exchange rate flexibility, the splitting of the internal objective into domestic output and the average price level, the distinction between the price of domestic production and the average price level, and the price indexation of nominal wages. The stability conditions of this model are developed. Based on a qualitative analysis the directions of the impact of policy instruments on objectives are determined and used for obtaining rules and conditions for stable (de)centralized policies under fixed and managed floating exchange rates. These are confronted with empirical results about Dutch adjustment policy. Helpful comments from Mr.. W. J. Ferkranus and Prof. S. K. Kuipers are acknowledged.