Quasi-longitudinal Designs in SEM state Space Modeling

The collection of longitudinal data over the full model time scope is often an appropriate way to estimate the dynamic state space model with time-varying parameters. Nevertheless, in many situations it is possible and preferable to collect and combine data from independent groups of subjects, each covering a shorter interval than the full dynamic model. Several quasi-longitudinal designs are discussed: overlapping designs (overlapping cohort design OCD and overlapping samples design OSD) as well as nonoverlapping designs up to the exclusively cross-sectional design. The use of the structural equation modeling (SEM) program Mx and continuous time state space modeling is recommended. Finally, a number of the quasi-longitudinal designs is empirically evaluated, comparing the results with those of the full-longitudinal design.     

Economic development, institutional change, and the political economy of agricultural protection An econometric study of Belgium since the 19th century

This empirical study uses 100 years of annual data on 11 agricultural commodities from Belgium to measure the impact of structural changes coinciding with economic development and changes in political institutions on agricultural protection. The analysis shows that changes in agricultural protection are caused by a combination of factors. Governments have increased protection and support to farmers when world market prices for their commodities fell, and vice versa, offsetting market effects on producer incomes. Other economic determinants were the share of the commodities in total consumer expenditures (negative effect) and in total output of the economy (positive effect). With Belgium a small economy, there was no impact of the trade position. Changes in political institutions have affected agricultural protection. Democratic reforms which induced a significant shift in the political balance towards agricultural interests, such as the introduction of the one‐man‐one‐vote system, led to an increase in agricultural protection. The integration of Belgian agricultural policies in the Common Agricultural Policy in 1968 coincided with an increase in protection, ceteris paribus. Both institutional factors, related to changes in access to and information about the decision‐making at the EU level, and structural changes in the agricultural and food economy may explain this effect.     

Financial crises and the asymmetric relation between returns on banks,risk factors,and other industry portfolio returns

We show that the relations between the returns on the banking industry, risk factors, and other industries often are asymmetric. Lagged banking industry returns seem to improve predictability but the positive impact of a 1‐month lag of the return on the banking portfolio is much higher in the lower part of the return distribution. However, after the Dodd‐Frank Act in 2010, the cross‐autocorrelation with banks is changed and becomes negative in the upper part of the distribution. Returns on banks also seem to lead returns on five risk factors. This relation, however, is not robust across the distribution.     

Legal Protection,Corruption and Private Equity Returns in Asia

Although trustworthiness has been described as a source of competitive advantage, its value extends to organizational governance and wealth creation. We identify the importance of the commitment–compliance continuum in the decision to trust and note that trustworthiness is a subjective perception viewed through each person’s mediating lens. That lens and each person’s interpretation of the social contract impact one’s commitment to cooperate. We suggest five propositions that integrate trustworthiness, governance, and wealth creation.     

Upstream Competition between Vertically Integrated Firms

We propose a model of two‐tier competition between vertically integrated firms and unintegrated downstream firms. We show that, even when integrated firms compete in prices to offer a homogeneous input, the Bertrand logic may collapse, and the input may be priced above marginal cost in equilibrium. These partial foreclosure equilibria are more likely to exist when downstream competition is fierce or when unintegrated downstream competitors are relatively inefficient. We discuss the impact of several regulatory tools on the competitiveness of the wholesale market.     

Social Behaviour in Work Absence*

By making use of a large‐scale randomized experiment, we test whether social behaviour is important for work absence due to illness. The individuals treated in the experiment were exposed to less monitoring of their eligibility to collect sickness insurance benefits, which sharply increased their non‐monitored work absence. This exogenous variation is exploited in two complementary analyses. In both analyses, we find significant social‐behaviour effects. Using detailed data, we conclude that the social‐behaviour effects most likely stem from fairness concerns.     

New agricultural development criteria: a proposal for project design and implementation

An environment conducive to a viable emerging agricultural sector is developing in South Africa, but it has yet to benefit most resource-poor producers. Some of the crucial constraints are accessibility and affordability of resources and services. Centrally managed agricultural projects as the main historical development model have largely failed to live up to the expectation that this would be the ‘cutting edge’ of development. This paper argues that the failure of these projects was partly due to four criteria for development not being sufficiently incorporated into project design and implementation: technical aspects of a project must be reconciled with social structures and realities; farmer diversity must be dealt with through focused support; business linkages must be structured and maintained; and skills development and participation must be institutionalised. Two of these criteria – dealing with diversity and facilitating participation – are elaborated on through a case study in the North West Province of South Africa. Typology analysis led to the identification of four distinct farmer types and this was followed by a Logical Framework planning process to develop a unique support strategy for each type. The objectives and activities required for each type are quantified. It is argued that this model, extending the project cycle to include the four new development criteria, constitutes a model for small farmer entrance into a competitive market.     

Farmers, Vertical Coordination, and the Restructuring of Dairy Supply Chains in Central and Eastern Europe

The combination of transition and globalization since the early 1990s has caused dramatic changes in the dairy chains in Central and Eastern Europe. This paper uses survey evidence from several Central and East European countries to document the growth of vertical coordination in the dairy chain, its relationship with policy reforms, its effects and the implications for small farms. Evidence suggests that in several countries small dairy farms have benefited from vertical coordination processes by providing them access to inputs and higher value markets.