Effects of EU dairy policy reform for Dutch dairy farming: a primal approach using GMM estimation

This paper estimates a production function for milk using ageneralised method of moments estimator to avoid the endogeneityproblem. Using the first-order conditions for profit maximisation,the economic effects for individual Dutch dairy farms of the2003 EU dairy policy reform are analysed. With an expected milkprice decrease of 21 per cent, profit decreases on average by22 per cent. EU direct payments compensate for roughly 53 percent of this fall in profit. The profit reduction means that69 per cent of all small farms have negative income from farming,compared with 15 per cent in the initial situation.     

Off-farm work decisions on Dutch cash crop farms and the 1992 and Agenda 2000 CAP reforms

A double hurdle model of off‐farm work participation and off‐farm labour income was derived and estimated consistent with a farm household model. It was found that rationing and unexpected transaction costs inhibit farm households from participating in off‐farm work. The 1992 and the Agenda 2000 CAP reforms are most likely to increase the off‐farm employment of arable farm households, but its full effect cannot be realised because of inhibitions to enter off‐farm activities. Household and farm characteristics have different impacts on off‐farm work participation and on the level of off‐farm labour income.     

Farm households and nonfarm activities in Ethiopia: does clustering influence entry and exit?

This article examines how clustering affects the entry and exit decisions of farm households into and from nonfarm enterprises in rural Ethiopia. We find that the existence of clusters of microenterprises in the same district increases the likelihood of a rural household to start a nonfarm enterprise. Similarly, clustering of big manufacturing firms in the same zone is found to increase the likelihood of farm households to start a nonfarm enterprise. Nonfarm enterprises operating in clusters are also found to have a lower probability of exit than those operating outside of clusters. The study further investigates the impact of entry and exit into and from nonfarm enterprises on farm household's well‐being using as indicators total household income, the food security status of a household, and the household's ability to raise enough money in case of emergency. Using propensity score matching to account for selection bias, we find that entry into nonfarm enterprises significantly increases household's income and food security status. Exit from nonfarm enterprises, on the other hand, is found to significantly reduce household's income.     

A state‐level analysis of the economic impacts of medical tourism in Malaysia

In Malaysia, a country that ranks among the world's most recognised medical tourism destinations, medical tourism is identified as a potential economic growth engine for both medical and non‐medical sectors. A state‐level analysis of economic impacts is important, given differences between states in economic profiles and numbers, origins, and expenditure of medical tourists. We applied input–output (I–O) analysis, based on state‐specific I–O data and disaggregated foreign patient data. The analysis includes nine of Malaysia's states. In 2007, these states were visited by 341,288 foreign patients, who generated MYR1,313.4 m ($372.3 m) output, MYR468.6 m ($132.8 m) in value added, and over 19,000 jobs. Impacts related to non‐medical expenditure are more substantial than impacts related to medical expenditure, and indirect impacts are a substantial part of total impacts. We discuss management and policy responses and formulate recommendations for data collection.     

Land fragmentation,climate change adaptation,and food security in the Gamo Highlands of Ethiopia

Household food security among smallholder farmers is sensitive to a variable and changing climate, requiring farmers in the Gamo Highlands of Ethiopia to adopt new land management practices to improve food security. Agricultural land in the Gamo Highlands is highly fragmented. The extent to which land fragmentation (LF) moderates the food security effects of sustainable land management (SLM) practices is unknown. This study used probit and Poisson models to explain this relationship. The study found that food insecurity was severe during the food shortfall season. LF provides more potential opportunities for improving food security than challenges. Furthermore, SLM practices had both positive and negative effects on food security and their effects were conditioned by the magnitude of LF. Reducing severe LF through the assembly of small parcels into larger heterogeneous plot clusters could enhance food security by exploiting synergies between adaptation practices and LF.     

Energy Taxes in the Netherlands: What are the Dividends?

In this paper the environmental and economic effects of the introduction of a unilateral energy tax in the Netherlands are analysed using an applied general equilibrium (AGE) model. The effects of a small user energy tax and a general energy tax are compared, while taking into account different tax recycling mechanisms. The model contains a great level of detail with respect to emissions and environmental indicators (greenhouse effect, acidification, eutrophication and waste), which is helpful for assessing environmental quality. The results show that the introduction of a small environmental tax reform not only improves the environment but also raises non-environmental welfare, which is due to an improvement of the efficiency of the tax structure.     

Uncertain Land Availability and Investment Decisions: The Case of Dutch Dairy Farms

Within the EU, uncertainty about the possibility of acquiring land can be quite significant for individual farmers in sectors like dairy farming. Farm‐level investment decisions are commonly made ex‐ante, when the farmer is not certain about the possibility of purchasing land. This possibility is realised only in a future period. In this paper, we have developed and applied a simple two‐period model in which a profit‐maximising farmer, facing uncertainty about the possibility of acquiring land, has to choose the optimal mix of capital (buildings) investment and land endowment. We illustrate the model using data from Dutch dairy farms.