Evaluating the Potential of Index Insurance Schemes to Reduce Crop Yield Risk in an Arid Region

We evaluate yield risk reduction through weather index, area yield index and farm yield insurance contracts for wheat farms in Kazakhstan by employing data from 1980 to 2002. We use the usual mean variance (MV) approach and also a second‐degree stochastic dominance (SSD) criterion. While MV is not necessarily consistent with the expected utility (EU) theory, SSD results only in a minimum but EU‐consistent benefit from insuring. Differences in the estimation results for both approaches underline the advantage of applying both criteria to analyse the risk‐reducing potential of crop insurance. Bootstrapping results show that none of the analysed insurance schemes provides statistically significant risk reduction for every single farm. In addition, weather‐based index insurance is found to provide less risk reduction than area yield insurance based on the rayon (county) yield. Moreover, rayon yield index insurance can reduce yield risk more effectively for Kazakhstan's wheat producers than farm yield insurance with a low strike yield.     

Structural change and technological development

It is important for our understanding of sectoral and regional structural change to analyze the R & D-activities. In this paper we show that R & D should be analyzed as an endogenous, intermediate, public investment variable rather than as ordinary capital investment. The allocation of resources for R&D cannot be decentralized regionally or sectorally but should preferably be decided on as a problem of optimal taxation. It is shown that the optimal rate of taxation for R&D is determined by possibilities of substitution between ordinary capital investments and R&D, by the propensity to invest and by the productivity of the R&D- producing sector. A dynamic model with accessibility representation of knowledge is finally formulated. This interregional R&D-model also has equilibrium growth properties. The equilibrium rate of growth of all regions of this model can be raised by decreasing any interregional distance or by raising any regional propensity to invest.     

‘Wilding' in the West Village: Queer Space,Racism and Jane Jacobs Hagiography

In urban studies, New York's West Village is famous for two principal reasons: as the paradigmatic ideal neighborhood in Jane Jacobs' influential The Death and Life of Great American Cities and as the site of one of the 1960s' great urban uprisings, the Stonewall riot in 1969. Today––largely because of the mixed‐use urban qualities celebrated by Jacobs––the West Village is one of New York's most desirable residential areas, yet it also remains an essential part of the city's queer geography. In this article, I analyze the persistent demonization of the area's queer youth of color by local neighborhood groups to argue that Jacobs' celebrated notion of natural surveillance (or what she called ‘eyes on the street') is fundamentally unsuited for a fluid queer space like the contemporary West Village. First, I historicize the current neighborhood tensions in the context of racialized media reporting of homophobic hate crime. Second, the discourses deployed in contemporary media of ‘wild' youth terrorizing the Village are examined. Finally, with reference to the forced closure of the African American bar Chi Chiz, I illustrate how the symbolic nightlife economy remains a key target in the city's regulation of queer space.     

Tax Competition and Economic Geography

Tax competition between two countries is considered in a trade–and–location setting with differentiated products and monopolistic competition. There are two groups of workers, mobile ones and immobile ones. Taxes are used for producing a public good. It is shown that an equilibrium with mobile workers dispersed across countries is destabilized by increased taxes on these mobile workers—even for perfectly coordinated tax increases. It is also shown that while tax competition gives rise to standard distortions in a tax–competition game when mobile workers are dispersed, different distortions result when they are concentrated in one country.