Farm Capital Investment and Deviations from the Optimal Path

We identify farms’ optimal investment path in capital assets and compare it with their actual investment to assess the direction and extent of deviation from the optimal investment. A probit model is further used to investigate the determinants of the probability that a farmer over‐ or under‐invests in capital assets. We use a panel dataset of Dutch dairy farms over the period 2003–2013, and find that most farms under‐invest in capital assets during the study period. Although the number of farms that had over‐invested in capital assets is relatively small, these farms account for the biggest share of total investment in capital assets. The probit results show that liquidity, agricultural support payments, age, land tenure and standard output size are important variables explaining the likelihood of over‐and under‐investment.     

Dynamic pricing in a reputation‐brokered agent‐mediated marketplace

We describe an agent‐mediated marketplace, with dynamically changing reputation ratings. In this marketplace, the seller reputations are updated in a collaborative fashion based on the performance of the user in the delegated tasks. We study the market with computer simulations of multiagent interactions, where sellers learn how to price their services dynamically. We first present some simple dynamic pricing methods and we investigate the different equilibria reached, based on the level of intelligence of the selling agents, the level of price–importance elasticity of the buying agents, and the level of unemployment in the marketplace. We then compare the equilibria reached with a theoretically ‘optimal’ equilibrium that we show to exist. Based on the results of this comparison we design a new dynamic pricing algorithm that we experimentally show to be almost optimal for reputation‐brokered agent‐mediated marketplaces. Copyright © 2000 John Wiley & Sons, Ltd.     

Do Farmers Internalise Environmental Spillovers of Pesticides in Production?

Pesticides are used in agriculture to protect crops from pests and diseases, with indiscriminate pesticide use having several adverse effects on the environment and human health. An important question is whether the environmental spillovers of pesticides also affect the farmers’ production environment. We use a model of optimal pesticide use that explicitly incorporates the symmetric and asymmetric effect of pesticides’ environmental spillovers on crop production. The application focuses on panel data from Dutch cash crop producers. We show that pesticides have a positive direct impact on output and a negative indirect impact through their effects on the production environment.     

Study of the major supply factors and business choices affecting the growth rate of wine tourism in Greece

Wine tourism is considered one of the alternative forms of tourism internationally. Wine tourism combines wine production with tourism activities, mainly in agricultural areas, as it embraces the tourism interest for wine production and the enjoyment of vineyard activities by the tourists. Greece, as a well-known tourist destination, is actually a new wine tourism area that has still a long way to go before claiming that it can render high-quality services in this very competitive sector. The objective of this paper is to examine and present the extent of wine tourism development in Greece, the characteristics as well as the main business choices related to wine tourism supply, aiming at highlighting the necessary key elements that can play a decisive role in its further growth. In terms of this paper, we attempt to examine the Greek wine producer's viewpoint of wine tourism by setting out data related to the development of the product, the satisfaction of businessmen involved, the means used to promote the product, the difficulties faced by and the expectations set by wine producers. In order to achieve the aforementioned goals, a research was conducted by means of a constructive questionnaire sent to all major Greek wine producers from April to June 2007. The participants in the wine tourism industry in the country were considered a major source of information.     

Derivation of netput shadow prices under different levels of pest pressure

In this paper, we propose a framework to derive agricultural netput shadow prices that assign values to netputs in terms of their contribution to technical and environmental efficiency. Our modeling approach is based on the dual representation of an event-specific data envelopment model and is applied to a panel dataset of Dutch arable farms. Results show that netput shadow prices vary significantly across pest pressure events, suggesting the relevance to consider the event-specific nature of the production technology when computing them. By revealing the relative importance of pesticides in terms of their contribution to environmental efficiency, this study provides a potential framework for constructing penalties aiming to internalize some portion of the social cost of pesticide use.     

Assessing the asymmetric volatility linkages of energy and agricultural commodity futures during low and high volatility regimes

This study investigated the volatility linkages between energy and agricultural futures, including possible causes for these comovements, such as external macroeconomic and financial shocks during low and high volatility regimes. A combination of Markov-switching regressions and quadrivariate VAR–DCC–GARCH and VAR–BEKK–GARCH modeling revealed that external shocks have an asymmetric effect on the relationship of these assets with higher cross-correlations reported during high volatility regimes. This comovement effect outweighs the substitution effect between energy and agricultural products. Furthermore, the quadrivariate VAR–BEKK–GARCH model provides strong evidence of a bidirectional price volatility spillover between the agricultural and energy markets during periods of high volatility. Overall, the results suggest that energy futures can be effectively used for hedging in a portfolio comprising agricultural futures (and vice versa), while a combination of macroeconomic and financial index futures can serve as an effective hedging tool in investment portfolios comprising both energy and agricultural commodities.     

Can economic incentives encourage actual reductions in pesticide use and environmental spillovers?

Chemical pesticides constitute an important input in crop production. But their indiscriminate use can impact negatively agricultural productivity, human health, and the environment. Recently, attention is focused on the use of economic incentives to reduce pesticide use and its related indirect effects. The aim of this work is to assess the effectiveness of different economic instruments such as taxes and levies in encouraging farmers to decrease pesticide use and their environmental spillovers. A policy simulation model is employed using data from Dutch cash crop producers including two pesticide categories that differ in terms of toxicity and pesticides’ environmental spillovers. Four different instruments were selected for evaluation: pesticide taxes, price penalties on pesticides’ environmental spillovers, subsidies, and quotas. The results of the study indicate that even high taxes and penalties would result in a small decrease in pesticide use and environmental spillovers. Taxes that differentiate according to toxicity do not lead to substitution of high‐ with low‐toxicity pesticides. Subsidies on low‐toxicity products are not able to affect the use of high‐toxicity products. Pesticide quotas are more effective in reducing pesticide use and environmental spillovers.     

Reducing Pesticide Use and Pesticide Impact by Productivity Growth: the Case of Dutch Arable Farming

This paper employs a dynamic Data Envelopment Analysis (DEA) model to measure the composition of productivity growth of pesticides and the environmental impacts of pesticides. The application focuses on panel data of Dutch arable farms over the period 2003–07. A bootstrap regression model is used to explain farmers' performance, providing empirical evidence of the impact of producer‐specific characteristics and environmental factors. The results show that Dutch arable farms have substantial inefficiency in the use of pesticides and high pesticide environmental inefficiency, and appear rather unconcerned about the environmental impacts of their current pesticide use decisions on next period's production environment.     

The Neoliberal Framework of EU Urban Policy in Action: Supporting Competitiveness and Reaping Disparities

This paper concerns the gradual proliferation of the neoliberal rationale in European Union urban policies towards a specific mode of competitiveness-oriented 'policy networking'. Empirical research on the policy network of the EU URBAN Initiative in Portugal and Greece illustrates the ineffectiveness of the current approach in acknowledging the socio-economic and political specificities that influence development prospects in lagging cities. The Commission's proposals on the reform of the Funds (2007-13) suggest the incorporation of EU urban programmes in the mainstream spatial policies framework. The rationale, however, remains unchanged. The context-free emphasis put in these proposals on the 'competitiveness' target mitigates the 'cohesion' objective and risks perpetuating uneven urban development trends.