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Full-Text Articles in Social and Behavioral Sciences
Interventions And Production Sector Waste In Ldc Agriculture, Lilyan E. Fulginiti, Richard K. Perrin
Interventions And Production Sector Waste In Ldc Agriculture, Lilyan E. Fulginiti, Richard K. Perrin
Department of Agricultural Economics: Faculty Publications
Recent studies have revealed that less developed countries (LDCs) have been taxing their agricultural sectors at rates of 40-50%. This study uses quantity-based general equilibrium measures of deadweight loss to evaluate the cost of these distortions in 18 of these countries. The Allais-Debreu loss measures indicate that from 7–16% of either output or of the agricultural resource base has been wasted due to the associated misallocation of agricultural inputs across these countries. Agriculture is heavily taxed in less developed countries (LDCs), with combined direct and indirect tax rates of 40 to 50% being common. These levels of intervention surely have …
Almost Ideal Area Yield Crop Insurance Contracts, Vincent H. Smith, Hayley H. Chouinard, Alan E. Baquet
Almost Ideal Area Yield Crop Insurance Contracts, Vincent H. Smith, Hayley H. Chouinard, Alan E. Baquet
Department of Agricultural Economics: Faculty Publications
Using yield data for a sample of 123 dryland wheat producers in Montana, the effects of three area yield contracts, including the contract currently offered by the United States Federal Crop Insurance Corporation and two individual yield contracts on individual farm yield variability, are examined. The results indicate that while the Federal Crop Insurance Corporation area yield contract provides all farmers in the sample with some protection against yield variability, a simpler, actuarially equivalent “almost ideal” area yield contract provides substantially larger reductions in yield variability. However, actuarially equivalent individual yield contracts provide levels of protection against yield variability similar …
Price-Conditional Technology, Lilyan E. Fulginiti
Price-Conditional Technology, Lilyan E. Fulginiti
Department of Agricultural Economics: Faculty Publications
Economics theorists for years have considered the possibility that the direction of technical change is altered by changes in relative prices. Prices also have been identified as one of the determinants of technical change through innovation, This article extends the theory of the firm to cover situations in which the firms technology set is conditional on expected prices. The basic idea is to distinguish between "market prices," or the prices that guide the firm's choices subject to the technology that is in place, and "normal prices," the prices conditioning the choice of technology. A “generalized" price effect is obtained that …