Is the Optimal Labor Income Tax Progressive in a Unionized Economy?

This paper concerns optimal nonlinear labor income taxation in an economy with union wage setting and endogenous hours of work. The government is assumed to act in accordance with a utilitarian objective function. The main purpose of the paper is to study the determinants of tax progression and, in particular, to relate tax progression to the choice of work hours. We show how the optimal degree of tax progression depends on the incentives underlying the choice of work hours, as well as on whether or not the government can monitor the wage rate via tax policy. If the wage rate is chosen by the union member with median seniority, in which case the wage rate will be fixed under certain conditions, the marginal tax rate is unambiguously positive and the tax structure unambiguously progressive. If, on the other hand, the union acts according to the utilitarian framework, we can no longer in general rule out regressive tax systems. We also show that the tax system is more likely to be progressive if the individual union members freely choose their hours of work conditional on the wage rate, than if the union is able to directly affect the hours of work per employee.Optimal taxation; labor supply; union wage setting

Combining revealed and stated preference methods to assess the private value of agrobiodiversity in Hungarian home gardens:

" Hungarian home gardens are small-scale farms managed by farm households using traditional management practices and family labor. They generate private benefits for farmers by enhancing diet quality and providing food when costs of transacting in local markets are high. Home gardens also generate public benefits for society by supporting long-term productivity advances in agriculture. In this paper, we estimate the private value to farmers of agrobiodiversity in home gardens. Building on the approach presented in EPTD Discussion Paper 117 (2004), we combine a stated preference approach (a choice experiment model) and a revealed preference approach (a discrete-choice, farm household model). Both models are based on random utility theory. To combine the models, primary data were collected from the same 239 farm households in three regions of Hungary. Combining approaches leads to a more efficient and robust estimation of the private value of agrobiodiversity in home gardens. Findings can be used to identify those farming communities, which would benefit most from agri-environmental schemes that support agrobiodiversity maintenance, at least public cost." Authors' abstractHome gardens, Small-scale farmers, Diet quality, Agricultural productivity, Agrobiodiversity, Household surveys, Private value, Choice experiment model, Farm household model, Revealed and stated preference methods,

Modelling South African grain farmers’ preferences to adopt derivative contracts using discrete choice models

This paper applies a discrete choice model to determine specific characteristics that influence South African grain farmers’ preferences to hedge against uncertainties. This is the first empirical study on South African grain producers’ preferences to adopt derivative contracting and is based on the survey data of Grain South Africa for 2006. With the application of separate binary logit models for each major grain commodity, this paper establishes that different grain farmers are significantly heterogeneous. The results also show that grain farmers’ preferences to adopt derivative contracting are mostly influenced by the farmers’ prediction of daily grain prices and trends, farm size and various geographic characteristics. From a policy perspective it has been indicated that food and income insecurity will be reduced if farmers can adopt derivative contracting at large scale since it will enable the producers to produce staple food on a continuous basis at a relatively profitable level.Discrete choice models, micro-analysis of farmers, agricultural markets and marketing,

A preference meta-model for logic programs with possibilistic ordered disjunction

This paper presents an approach for specifying user preferences related to services by means of a preference meta-model, which is mapped to logic programs with possibilistic ordered disjunction following a Model-Driven Methodology (MDM). MDM allows to specify problem domains by means of meta-models which can be converted to instance models or other meta-models through transformation functions. In particular we propose a preference meta-model that defines an abstract preference specification language allowing users to specify preferences in a more friendly way using models. We also present a meta-model for logic programs with possibilistic order disjunction. Then we show how we conceptually map the preference meta-model to logic programs with possibilistic ordered disjunction by means of a mapping function.Peer ReviewedPostprint (published version

An Integrated Assessment of Water Markets: Australia, Chile, China, South Africa and the USA

The paper provides an integrated framework to assess water markets in terms of their institutional underpinnings and the three 'pillars' of integrated water resource management: economic efficiency, equity and environmental sustainability. This framework can be used: (1) to benchmark different water markets; (2) to track performance over time; and (3) to identify ways in which water markets might be adjusted by informed policy makers to achieve desired goals. The framework is used to identify strengths and limitations of water markets in: (1) Australia's Murray-Darling Basin; (2) Chile (in particular the Limarí Valley); (3) China (in particular, the North); (4) South Africa; and (5) the western United States. It identifies what water markets are currently able to contribute to integrated water resource management, what criteria underpin these markets, and which components of their performance may require further development

Are Agricultural Measures for Groundwater Protection Beneficial When Compared to Purification of Polluted Groundwater?

The groundwater resource, the drinking water areas and the surface water quality can be protected by measures, e.g. by reductions of pesticide and nutrient applications, conversion of arable land to grasslands or forests etc. The objective of the paper is to estimate the benefits of groundwater protection by the valuation method choice experiments. This method allows for separate estimation and comparison of the different attributes connected to groundwater protection i.e. the effects on drinking water and surface water quality as compared to the benefits from cleaning and treatment of polluted drinking water to make it suitable for drinking water consumption. The results indicate that the benefits are significant, and that the willingness to pay for protection of the groundwater exceeds that from purification.groundwater, pollution, drinking water, valuation, choice experiments, Environmental Economics and Policy, Resource /Energy Economics and Policy, Q25, Q26, Q28, C42, D62,