Revenue insurance purchase decisions of farmers

The objective of this study is to evaluate farm, household, and financial characteristics of cash grain farmers’ decisions of whether to purchase revenue insurance. Using farm-level data these characteristics were identified by estimating a logit model of revenue insurance purchase decisions by farm operators. Results indicate that farm operators with the ability to self-insure through accumulation of sufficient wealth reserves measured in terms of the ratio of debts-to-assets, operators with off-farm income, and participation in production and marketing contracts, are more likely to pursue these strategies as a substitute for federal revenue insurance programmes. Further, study finds that older and wealthy cash grain farmers are less likely to buy revenue insurance.     

Temporal aggregation and the strength of the association between securities' risk and return

In this letter we examine the effect of time aggregation on the correlation between securities' average returns and their corresponding level of systematic risk as specified by the Capital Asset Pricing Model (CAPM). We demonstrate that the R-square of the empirical Security Market Line is highly sensitive to the length of securities' return interval. Consequently, extreme care should be displayed in interpreting statistical results obtained from securities' risk-return studies.     

Some aspects of employment in Indian agriculture

The purpose of this study is to examine the effects of structural differences (due to size of holding) on employment in Indian agriculture. Translog cost function is applied, and restrictions are tested using a likelihood ratio test. For small- and medium-size farms, joint estimation of a non-homothetic cost function with cost share equations is conducted, and Allen elasticities of substitution and price elasticities of demand for eight different inputs are derived. Inputs are classified as substitutes and complements using Slutsky-Hicks-Allen-Schultz definition. Each source of labor against hired labor is a substitute for small farms (0–5 hectares). Some policy analysis of rural employment and a fertilizer subsidy scheme is presented using price elasticities of demand for small and medium farms.     

UK policy coordination: the importance of institutional design

This paper considers the principles that underpin the design of the UK's macroeconomic framework, with particular emphasis on the importance of good institutional design in ensuring effective coordination of monetary and fiscal policy when an independent Bank of England Monetary Policy Committee has operational responsibility for setting interest rates. The theoretical literature on policy coordination finds that the cost of central bank independence is less monetary‐fiscal coordination. We argue that once account is taken of the institutional arrangements, this conclusion does not hold for the UK. In fact, the UK macroeconomic policy framework represents a significant improvement in policy coordination through mechanisms that allow for greater transparency and accountability in policy‐making. Among the measures discussed in the paper is the role of the Treasury Representative on the Bank of England Monetary Policy Committee.     

The role of credit constraints and government subsidies in farmland valuations in the US: an options pricing model approach

The Modigliani–Miller (M–M) theorem of financial asset theory concludes that asset values are independent of financing. In other words, debt-solvency (credit constraints) does not affect asset values. Therefore, using the M–M theorem one can argue that credit constraints in the farm sector (where land is the most important asset) do not affect the value of farmland. However, this proof relies on several arbitrage assumptions that are violated in the case of agricultural assets. This paper examines the effect of debt-solvency and government payments on changes in annual farmland values by state in the United States. Using panel cointergration method, results indicate that farmland values are significantly affected by both solvency and government payments. In addition, the results imply that government payments may affect agricultural asset values beyond the direct effect hypothesized in the literature.      

The indirect gaming contributions of cash and comped casino dining: Does providing complimentary meals pay off at the slots?

This study examined the relationship between gaming volume and restaurant revenue for paid and comped diners; i.e., diners for whom the meal was provided free, using data from two hotel casinos in different markets. The results of time series regression analysis revealed a significant and positive relationship between restaurant revenue and gaming volume in both markets. However, the gaming contribution of comped diners in terms of estimated incremental gaming revenue was much higher than that of cash diners in both markets. These findings confirm the ability of casino restaurants to attract gaming patrons and suggest that providing complimentary meals may be an effective tool to stimulate visits and generate gaming revenue.     

The changing landscape of Indian agriculture

In tracking the revolutionary changes in the Indian agricultural sector, it is quite clear that technology, institutions, and markets have had a very important role to play. Of course, the public sector played a pivotal and catalytic role when India ushered in the Green Revolution in late 1960s and early 1970s. The public sector imported new seeds, organized their distribution and demonstration, and provided price and market support, all “not‐for‐profit.” The cooperative sector, supported and facilitated by the government, again with the spirit of “not‐for‐profit,” helped bring in the White Revolution in milk through Operation Flood in 1970s and 1980s. This spirit is now being gradually replaced by “for‐profit” objective driven by the private sector, as is demonstrated in the revolutionary changes brought about by the introduction of Bacillus thuringiensis technology in the cotton sector during 2002–2007. On top of this, the corporate sector is also changing the complexion of the Indian agrisystem through notable changes in organized food processing and retailing. This change in spirit from “not‐for‐profit” to “for‐profit” in the growth process of Indian agriculture has significant implications for the concept of CISS, i.e., competitiveness, inclusiveness, sustainability, and scalability, which needs to be studied carefully and in detail. Accordingly, this article traces some of these dynamic changes and their likely implications.