A Joint Framework for Analysis of Agri-Environmental Payment Programs

This article presents an approach for simultaneously estimating farmers' decisions to accept incentive payments in return for adopting a bundle of environmentally benign best management practices. Using the results of a multinomial probit analysis of surveys of over 1,000 farmers facing five adoption decisions in a voluntary program, we show how the farmers' perceptions of the desirability of various bundles change with the offer amounts and with which practices are offered in the bundle. We also demonstrate an estimator for the mean minimum willingness to accept for the adoption of a practice conditional on the cost share offers for other practices.     

Effects of Milk Marketing Order Regulation on the Share of Fluid-Grade Milk in the United States

The share of raw milk meeting fluid quality (Grade A) standards in the United States rose steadily through the latter half of the twentieth century, but a shrinking portion of that was used in fluid products. Grade A milk exceeds the quality standards for the manufactured products for which it has been increasingly used. We present an econometric model that exploits regional and temporal variation in policy implementation to identify the effect of marketing orders on the Grade A share of milk. Results support the hypothesis that marketing orders significantly encouraged the growth in the Grade A share of milk.     

ECONOMIC COSTS AND RETURNS FROM CROP DEVELOPMENT RESEARCH: THE CASE OF RAPESEED BREEDING IN CANADA

Public and private investment in Research and Development are an important source of economic growth. This article documents the high rate of return to society from investment in agricultural research. The analysis took the form of estimating the gains in producer and consumer surplus from research that improved rapeseed yield in western Canada and related these gains to research expenditures by calculating an internal rate of return. The distribution of the return between consumers and producers were estimated. The internal rate of return was found to be 101 percent and indicates an underinvestment in this type of research. Of the total net benefits, consumers captured 53 percent and producers 47 percent.
L'argent public et prive investi dans la recherche et le développement est une source importante de croissance économique. Le présent article fournit une documentation sur le taux élvé des profits que rapportent à la société les investissements dans la recherche en agriculture. Notre analyse a pris la forme d'une estimation des gains en surplus réalisés par le producteur et le consommateur, à la suite de recherches améliorant le rendement de la semence du colza dans l'ouest canadien, puis nous avons établi un rapport entre ces gains et les dépenses pour la recherche en calculant un taux de profits internes. Nous avons évalué la répartition des profits entre consommateurs et producteurs. Le taux des profits internes s'est avéré être de 101 pour cent, et cela signifie un sous-investissement dans ce type de recherche. Les consommateurs ont réalisé 53 pour cent du total des bénéficies nets, alors que les producteurs en ont récupéré 47 pour cent. 1928 ems     

Estimating the Prevalence and Cost of Yield-Switching Fraud in the Federal Crop Insurance Program

Producers who manipulate and switch their reported crop-yields between separately insured units can increase their insurance indemnities substantially. A statistical model that identifies potential yield switching is developed. The unrestricted statistical model is singular and is identified by imposing a mixture of system-estimable and system-nonestimable restrictions. Lower bound estimates of yield-switching fraud incidence and costs are obtained by applying the model to 207,067 multiple unit producers who purchased crop insurance in 1998.     

Foreign output shocks,monetary rules and macroeconomic volatilities in small open economies

The 2008 financial crisis is marked by the drop in output of major industrial countries which affected small open economies in various degrees. We examine the role of three different types of monetary policy rules in mitigating or exacerbating the effects of a negative foreign output shock on key macroeconomic variables of a small open economy by numerically solving a dynamic stochastic general equilibrium (DSGE) model. We find that compared to the Taylor rule, small open economies that follow either fixed exchange rate regime or strict inflation targeting tend to stabilize real exchange rate and inflation at the expense of substantial instability in the real economy.     

Institutional pressures and marketing ethics initiatives: the focal role of organizational identity

Institutional theory implies that normative societal expectations create pressures for organizations to respond acceptably to important institutional constituents. Although the role of the institutional environment on marketing has been studied, the organizational mechanisms by which firms respond to societal pressures remain under-investigated. We suggest that an important determining factor involves organizational identity, which drives firm response to societal norms and facilitates its quest for legitimacy. Accordingly, this study contributes to organizational theory in marketing by casting identity as the focal mechanism in the firm’s response to the institutional environment. Marketing ethics and CSR issues frame this research given natural synergies with institutional and organizational identity theories and evidence that increasingly, firms must respond to societal expectations involving ethics in their marketing practices. Using game theoretical models and economic experiments, we find that the influence of the institutional environment emerges through firm identity, affecting resource allocation to ethical product augmentation.     

Predicting elections from biographical information about candidates: A commentary essay

Armstrong and Graefe apply the index method to predict presidential elections. They imply that the technique is also useful for business decision making. Their idea has merit and may be relevant when the decision context is dynamic, has few prior “observations,” and where domain knowledge exists. However, Armstrong and Graefe fail to adequately explain the variable selection process, clarify the conditions when the index method is appropriate, or identify the types of problems most amenable to the index method, and fail to discuss how the index method can be calibrated to help make single option decisions.     

Business Ethics and the ‘End of History’ in Corporate Law

If social scientists take natural science as a model, they may err in their predictions and may offer facile ethical views. MacIntyre assails them for this, but he is unduly pessimistic about business, and in rejecting the separation thesis he raises some difficulties about naturalism. Aristotle’s views of the good life and of the close relationship between internal and external goods provide a corrective to MacIntyre, and in fact suggest how virtues can support social capital and thus prevail within and among firms in competitive markets. Aristotle’s views are not necessarily inimical to those underlying modern democratic capitalism, but they raise questions about the limits to the good life. The separation thesis misses the importance of addressing the questions with both empirical and ethical resources.     

The evolution of alliances in the global airline industry: A review of the African experience

In an increasingly globalized world, alliances have proliferated in one industry after another, and the competitive game has shifted from firm versus firm to group versus group, leaving many firms operating on the margins of these constellations. Using the case of the global airline industry, this article examines how the shift from bilateral to multilateral alliances has left many African airlines operating on the margins of the global airline alliances groupings. We conjecture that a number of internal organizational factors, such as size and lack of access to scarce resources, and external factors, such as a slow market‐reform process and insufficient reform of state‐owned airlines, have hindered their success in a highly competitive environment. The theoretical, managerial, and policy implications of these findings are discussed. © 2011 Wiley Periodicals, Inc.