MONOTONICITY AND CURVATURE - A BOOTSTRAPPING APPROACH

This research contributes to the ongoing discussion on functional flexibility and theoretical consistency by comparing the empirical performance of two second order flexible functional forms - the Symmetric Generalized McFadden and the Transcendental Logarithmic. It proposes an estimation procedure to enhance the domain of applicability for the Translog by a combination of matrix decomposition, classical non-linear estimation techniques as well as bootstrapping based resampling. The validity of the proposed procedure is exemplified by applying it to a sample of small-scale farmers. The results show that the range of theoretical consistency can be crucially enhanced for the Translog functional form by maintaining its flexibility and statistical significance. Hence, beside its empirical superiority by applying the outlined procedure the Translog can also catch up with respect to the range of functional consistency.Econometric Modeling, Flexible Functional Forms, Theoretical Consistency, Bootstrapping, Financial Economics,

Die Ökonomie der (ländlichen) Wasserversorgung

Der vorliegende Beitrag diskutiert die optimale Organisation der Wasserversorgung unter Berücksichtigung der grundlegenden Gutscharakteristika und der spezifischen Produktions-struktur. Nach einer formalen Beschreibung der einzelnen Produktionsstufen und der realen Organisation des Wassersektors in Deutschland werden kurz verschiedene Modelle zur Sek-tororganisation vorgestellt. Anschließend wird versucht, die Bestimmung der ökonomisch optimalen Betriebs- und Angebotsorganisation zu erläutern. Schließlich werden zentrale öko-nomische Konzepte der Produktionsanalyse und der industriellen Organisation für eine empi-rische Überprüfung am Beispiel der Wasserversorgung beispielhaft modelliert. Es zeigt sich, dass empirisch fundierte Organisationsmodelle bisher keinen Eingang in die aktuelle Liberali-sierungsdiskussion in den Wassersektoren gefunden haben. Im Hinblick auf eine Restruktu-rierung der Wasserversorgung in ländlichen Regionen könnte das sog. 'Pool-Modell' eine Al-ternative zur derzeitigen integrierten Verbundlösung darstellen. -- E N G L I S H V E R S I O N: This paper deals with the optimal organisation of the water supplying industry by having a close look on the basic characteristics of water as a economic good as well as the specific structure of production. After the formal description of the individual stages of production and the real organisation of the German water sector, different models for the sector organisation are briefly being considered. Subsequently, the determination of the optimal firm and industry structure is illustrated from the economic point of view. Finally, central economic concepts with respect to production analysis as well as industrial organisation are modelled for an empirical application to the water supplying industry. It is revealed that empirically based organisation models have not been considered in the course of the ongoing discussion on water sector liberalisation so far. The 'pool-model' seems to be a promising alternative with respect to the restructuring of the water supplying industry in rural areas.Water Supply Industry,Production Analysis,Industrial Organisation,Economic Modelling,Wasserversorgung,Produktionsanalyse,Industrielle Organisation,Modellierung

Soil Fertility Management And Maize Productivity In Malawi: Curvature Correct Efficiency Modeling And Simulation

We assess the level and determinants of relative technical efficiency of maize-based smallholder farmers using a translog stochastic frontier (TL) model and a symmetric generalized Barnett production function (SGB), both of which are tested for economic regularity conditions. In addition, we conduct a bootstrapping procedure in order to infer about the probability distributions and significance of the relative efficiency values for farmers using different soil fertility management options. The results indicate that higher levels of relative technical efficiency obtain when farmers use integrated soil fertility options compared to the use of chemical fertilizer only. The consistency of the results across the two models increase the robustness of the findings. The paper concludes that productivity growth under the maize-based farming systems is considerably higher when farmers use integrated soil fertility management options. Thus there is need for policy and institutional interventions that enhance farmers’ adoption and scaling-up of integrated soil fertility management.Smallholder agriculture, relative technical efficiency, soil fertility management, Malawi, Agricultural and Food Policy, Consumer/Household Economics, Demand and Price Analysis, Farm Management, Food Consumption/Nutrition/Food Safety, Food Security and Poverty, International Relations/Trade, Labor and Human Capital, Productivity Analysis, Research and Development/Tech Change/Emerging Technologies,

Innovation Behaviour At Farm Level – Selection And Identification

Using a squential logit model and a mixed-effects logistic regression approach this empirical study investigates factors for the adoption of automatic milking technology (AMS) at the farm level accounting for problems of sequential sample selection and behaviour identification. The results suggest the importance of the farmer’s risk perception, significant effects of peer-group behaviour, and a positive impact of previous innovation experiences.Technology Adoption, Mixed-Effects Regression, Risk, Agricultural and Food Policy, Farm Management, Land Economics/Use,

Innovation behaviour at farm level: Selection and identification

Using a squential logit model and a mixed-effects logistic regression approach this empirical study investigates factors for the adoption of automatic milking technology (AMS) at the farm level accounting for problems of sequential sample selection and behaviour identification. The results suggest the importance of the farmer’s risk perception, significant effects of peer-group behaviour, and a positive impact of previous innovation experiences.squential logit model, automatic milking technology (AMS), Livestock Production/Industries, Research Methods/ Statistical Methods, Risk and Uncertainty,

Alternative Soil Fertility Management Options in Malawi An Economic Analysis

In this paper, we analyze the factors that influence t he productivity of maize among smallholder farmers, given that unfavourable output and input market conditions throughout the 1990s have compelled smallholder farmers into unsustainable agricultural intensification. We use farm-household survey data in order to compare the productivity of smallholder maize production under integrated (ISFM) and chemicalbased soil fertility management using a normalized translog yield response model. The results indicate higher maize yield responses for integrated soil fertility management options after controlling for the intensity of fertilizer application, labour intensity, seed rate as well as land husbandry practices a s well as selected policy factors. The estimated model is highly consistent with theoretical conditions. Thus we conclude that the use of ISFM improves maize productivity, compared to the use of inorganic fertilizer only. Since most farmers in the maize-based farming systems are crowded out of the agricultural input market and can hardly afford optimal quantities of inorganic fertilizer, enhancement of ISFM is likely to increase their maize productivity. We finally highlight areas of policy support needed to enhance ISFM uptake in smallholder maize-based farming systems.smallholder agriculture, yield response model, soil fertility management, Malawi, Land Economics/Use,

SOIL FERTILITY MANAGEMENT AND AGRICULTURAL PRODUCTIVITY IN MALAWI

In this paper we analyze the factors that influence the productivity of maize among smallholder farmers. We use farm-household survey data in order to compare the productivity of smallholder maize production under integrated (ISFM) and chemical-based soil fertility management using a normalized translog yield response model. The results indicate higher maize yield responses for integrated soil fertility management options after controlling for the intensity of fertilizer application, labour intensity, seed rate, land husbandry practices as well as selected policy factors. The estimated model is highly consistent with theoretical conditions. Thus we conclude that the use of ISFM improves maize productivity, compared to the use of inorganic fertilizer only. Since most farmers in the maize-based farming systems are crowded out of the agricultural input market and can hardly afford optimal quantities of inorganic fertilizer, enhancement of ISFM is likely to increase their maize productivity. We finally highlight areas of policy support needed to enhance ISFM uptake in smallholder maize-based farming systems.Malawi, smallholder agriculture, soil fertility management, yield response model, Farm Management,

THE MARGINAL COST OF AGRI-ENVIRONMENTAL SERVICES

agri-environmental services, bio-economic modelling, economies of scale and scope, Environmental Economics and Policy, Land Economics/Use, Research Methods/ Statistical Methods, Q18, Q57, Q58,

Natural Disasters and Agriculture: Individual Risk Preferences towards Flooding

This study contributes to the understanding of behavioural responses to climate change induced extreme weather events. It suggest a microeconometric method for measuring flooding related risk preferences of affected individuals. The method is outlined using the empirical case of agricultural production in floodplains of the UK over 28 years. A quasi-experimental approach to measure differences in the risk attitudes of farmers located in high flooding risk areas versus farmers located in low flooding risk areas is followed. Changes in flooding risk related behaviour over time is analysed and marginal effects of different individual and disaster related characteristics for this behaviour are investigated. Beside a moments based risk estimation approach the study also applies a dynamic panel estimator. The estimates suggest that the average farmer located in a high flooding risk area is prepared to pay about 6% more of his profit for insuring against the higher risk of flooding compared to farmers in low flooding risk areas. The significance of considering individual risk preferences for an efficient flood policy design is discussed using the example of voluntary agreements for the maintainance of flood defences. Die folgende Studie untersucht individuelle Verhaltensänderungen im Hinblick auf Klima induzierte extreme Wetterereignisse. Es wird eine mikroökonometrische Methode zur Messung Flutungsbedingter Risikopräferenzen vorgeschlagen. Die Methode wird exemplarisch am Fall landwirtschaftlicher Produktion in England für einen Zeitraum von 28 Jahren aufgezeigt. Es wird ein quasi-experimenteller Ansatz verfolgt um Unterschiede in den Risikopräferenzen von Landwirten in Gebieten mit geringem Flutungsrisiko und solchen in Gebieten mit hohem Flutungsrisiko zu untersuchen. Änderungen in Flutungsrisiko bezogenem Verhalten im Zeitablauf sowie die marginalen Effekte verschiedener Charakteristiken und Faktoren werden beleuchtet. Neben einem ‚moments based‘ Schätzansatz wird ebenso ein dynamischer Panel Schätzer verwandt.Extreme Events, Risk, Agriculture, Natural Experiments, Behavioural Adaptation, Extreme Ereignisse, Risiko, Landwirtschaft, Natürliche Experimente, Verhaltensadaption, Agribusiness, Agricultural and Food Policy, Q12, C54,

Determinants of Food Industry Performance – Empirical Evidence Based on a Survey

This paper empirically investigates the determinants of firms’ performance in the agri-food sector by using recent survey data for Denmark. Treating sales per employee as a proxy for value addition we estimate several bootstrapped regression models to draw conclusions on the marginal effects of potential performance determinants such as the form and nature of ownership, stage of the food chain and commodity sector, new product development, staff quality, firms’ competitive stance, and elements of firms’ strategy. To draw robust inferences we apply, besides the ordinary heteroscedasticity corrected Tobit ML-estimator, a nonparametric least absolute deviations estimator (LAD/CLAD) based on a quantile regression procedure. The results indicate that we cannot reject the hypothesis of no influence of dominant orientation on value added. Rather, firms’ focus on human capital, stage and commodity sector better explains their value addition. We can reject the hypothesis that regional networks have no influence on value added. Differences in location, emphasis on human capital and the negative influence of outsourcing on value added all provide supporting evidence. We reject the hypothesis of no influence of FDI, and moreover propose that FDI has targeted the domestic Danish market as a source of value added.value added, innovation, organizational type, Agribusiness, Q13, O31, O33,