244 research outputs found
Conditional FDH efficiency, income dispersion and market imperfections: the case of the Brazilian agricultural sensus of 2006.
In this article we assess the effect of market imperfections and income inequality on rural production efficiency. The analysis is carried out using the notion of stochastic conditional efficiency computed in terms of free disposal hull (FDH) efficiency measurements. Free disposal hull and conditional FDH are output oriented with variable returns scale
Spatial Econometric Issues for Bio-Economic and Land-Use Modeling
We survey the literature on spatial bio-economic and land-use modelling and review thematic developments. Unobserved site-specific heterogeneity is common in almost all of the surveyed works. Heterogeneity appears also to be a significant catalyst engendering significant methodological innovation. To better equip prototypes to adequately incorporate heterogeneity, we consider a smorgasbord of extensions. We highlight some problems arising with their application; provide Bayesian solutions to some; and conjecture solutions for others.spatial econometrics, bio-economic and land-use modelling, Bayesian solution, Land Economics/Use,
Land institutions and land markets
In agrarian societies land serves as the main means not only for generating a livelihood but often also for accumulating wealth and transferring it between generations. How land rights are assigned therefore determines households'ability to generate subsistence and income, their social and economic status (and in many cases their collective identity), their incentive to exert nonobservable effort and make investments, and often their ability to access financial markets or to make arrangements for smoothing consumption and income. With imperfections in other markets, the institutions governing the allocation of land rights and the functioning of land markets will have implications for overall efficiency as well as equity. The authors examine how property rights in land evolve from a situation of land abundance. They discuss factors affecting the costs and benefits of individual land rights and highlight the implications of tenure security for investment incentives. They also review factors affecting participation in land sales and rental markets, particularly the characteristics of the agricultural production process, labor supervision cost, credit access, the risk characteristics of an individual's asset portfolio, and the transaction costs associated with market participation. These factors will affect land sales and rental markets differently. Removing obstacles to the smooth functioning of land rental markets and taking measures to enhance potential tenants'endowments and bargaining power can significantly increase both the welfare of the poor and the overall efficiency of resource allocation. Drawing on their conceptual discussion, the authors draw policy conclusions about the transition from communal to individual and more formal land rights, steps that might be taken to improve the functioning of land sales and rental markets, and the scope for redistributive land reform.Banks&Banking Reform,Environmental Economics&Policies,Labor Policies,Municipal Housing and Land,Economic Theory&Research,Environmental Economics&Policies,Banks&Banking Reform,Municipal Housing and Land,Economic Theory&Research,Real Estate Development
The Diffusion of Cattle Ranching and Deforestation – Prospects for a Hollow Frontier in Mexico’s Yucatán
This article investigates the behavioral drivers of pasture creation and associated implications for deforestation in a 22,000 km2 agricultural frontier spanning the base of Mexico‘s southern Yucatán. After developing a theoretical model that highlights the role of social networks and information spillovers with respect to the decision to begin cattle ranching, we use household data to estimate an econometric duration model of the determinants of pasture creation. Although pasture fi ts well with the typical household‘s resource constraints, its continued expansion contributes to a hollow frontier dynamic in which the spread of low-value cattle ranching coincides with decreasing population.Pasture creation; information spillovers; duration analysis; farm households; Mexico
Three Essays on Evaluating the Impact of Natural Resource Management Programs
This dissertation is composed of three papers describing the nexus between natural resource management programs, farmer well-being, and productivity. Our study sheds light on the effectiveness of actions that have been or could be implemented to address the “triangle of poverty.” This triangle connects low farm productivity to high poverty, which forces farmers to increase the pressure on natural resources thus further degrading the environment and resulting in even lower productivity and more poverty.
Natural resource management (NRM) imbeds key agricultural policies, which aim at handling resource degradation while enhancing productivity particularly among smallholder farmers. Technologies promoted through the use of NRM programs encompass conservation agriculture, water and integrated pest management, agroforestry, and silvopastoral activities. Although most of these technologies have been promoted since the early 1960s, it was not until 1989 when the CGIAR emphasized the value of NRM technologies as tools to ensure the sustainability of agricultural systems. Since then, the implementation of NRM programs have evolved around the following definition: “Sustainable agriculture should involve the successful management of resources for agriculture to satisfy changing human needs while maintaining or enhancing the quality of the environment and conserving natural resources (Consultative Group on International Agricultural Research [CGIAR] 2006, p.4).” In general, these programs aim at developing and disseminating technologies, which improve the quality of soil and water, diversify the agro-ecosystem and build farm capacity to mitigate the effects of climate change.
To examine to what extent NRM programs have achieved their aim, in the first essay, meta-regression analysis is used to explore the effect that natural resource management (NRM) programs have on monetary outcomes and on productivity. In doing so, we use a comprehensive dataset of 75 impact evaluation studies and 215 observations from all over the world (equivalent to a sample of 31,991 treated and 42,936 control farmers) to explain why impact varies among studies and across different interventions, regions, and methods. Econometric results from ordered probit, probit, OLS regression, and Bayesian regression models consistently show that NRM programs have a significant positive effect on the monetary outcomes and productivity of beneficiaries relative to control farmers. Overall, NRM technologies increase monetary outcomes on average by 8%, and yields by 13%. Furthermore, the impacts of NRM programs could be larger if: i) participatory methods to transfer the technology to the final user are incorporated in the design; ii) appropriate training to boost the adoption of the technology is provided; iii) NRM technologies are tailored to the rainfall patterns of the intervention area; iv) government units are more efficient in the delivery of technologies; and v) the evaluation of NRM programs account for the time necessary for these programs to produce results.
The first essay compiles evidence from a large number of published analyses. We complement this evidence in the following two essays with original empirical analyses of a specific NRM intervention, the Socio-Environmental and Forestry Development Program-II (POSAF-II), which was implemented by the Nicaraguan Ministry of the Environment and Natural Resources (MARENA). The goal was to promote economic development and environmental sustainability. POSAF-II financed a total of 13,477 farmers occupying 69,767 hectares in several major river basins that were severely damaged by Hurricane Mitch in 1998. Therefore, this program represents a unique opportunity to evaluate the economic impact of NRM programs in an area affected by a massive weather event, characterized by high soil degradation and poverty.
The second essay is an analysis of the economic impact of natural resource technologies delivered by POSAF-II. We use cross-sectional data for 1,483 households, from 212 treated and control communities. Results obtained through propensity score matching (PSM), ordinary least squares (OLS), weighted least squares regression (WLS) based on PSM, and instrumental variables (IV) regression indicate that POSAF-II has had a positive impact on the total value of agricultural production of beneficiary farmers relative to appropriate control groups. The estimated internal rate of return supports the hypothesis that increasing household income while encouraging the sustainable use of natural resources through the implementation of suitable management programs can be complementary development objectives.
The third essay examines the impact of POSAF-II on two critical components of productivity: technological change (TC) and technical efficiency (TE). We use propensity score matching (PSM) to mitigate potential biases from observable variables along with a recently introduced stochastic production frontier (SPF) model that addresses sample selection bias arising from unobservable variables. Our results show that POSAF-II has had a positive impact on both TC and TE. This essay contributes to the literature on impact evaluation by showing how an intervention designed to improve natural resource management can also enhance the income of poor farm households through increases in productivity
Modelling conditional measures of efficiency to assess the influence of covariates on agricultural production in Brazil.
ABSTRACT: Brazilian agriculture is productive, efficient, and profitable for a few farmers. However, due to the restricted access to technology, the major part of the rural producers are marginalized and outside of the mainstream of production. In this paper we assess the significance of external factors critical for productive insertion and poverty reduction in the countryside, by means of a two-stage DEA approach. The covariates considered are credit for production and exports, technical assistance, infrastructure, participation in cooperatives, education, and use of environmental friendly practices. We investigated the statistical significance of these contextual variables in production performance by means of two-stage regressions using maximum likelihood via a regional heteroskedastic beta-inflated model, which shows a superior performance over fractional regression models. The response variable is the ratio of conditional to unconditional DEA measures of efficiency, computed for each Brazilian county. RESUMO: A agricultura brasileira é produtiva, eficiente e lucrativa para um conjunto pequeno de agricultores. No entanto, devido ao acesso restrito a tecnologias, grande parte dos produtores rurais é marginalizada e está fora do fluxo principal da produção. Neste artigo é avaliada a importância de fatores externos para a inserção produtiva e a redução da pobreza no campo, por meio de modelagem DEA em dois estágios. As covariáveis consideradas são crédito para produção e exportação, assistência técnica, infraestrutura, participação em cooperativas, educação e uso de práticas ecologicamente corretas. A significância estatística dessas variáveis na eficiência é investigada por abordagem em dois estágios usando máxima verossimilhança e um modelo beta-inflado heterocedástico regional, que apresenta desempenho superior em relação aos modelos de regressão fracionária. A variável resposta é a razão de medidas de eficiência DEA condicionais e não condicionais, calculadas para cada município brasileiro
CLIMATE CHANGE, AGRICULTURE AND POVERTY
Even though much has been written about climate change and poverty as distinct and complex problems, the link between them has received little attention. Understanding this link is vital for the formulation of effective policy responses to climate change. In this article, we focus on agriculture as a primary means by which the impacts of climate change are transmitted to the poor, and as a sector at the forefront of climate change mitigation efforts in developing countries. In so doing, we offer some important insights that may help shape future policies as well as ongoing research in this area.Agricultural and Food Policy, Environmental Economics and Policy, Food Security and Poverty, Resource /Energy Economics and Policy,
Produção, eficiência técnica e imperfeições de mercado na agricultura brasileira.
Os dados do Censo Agropecuário de 2006 indicam que a agricultura brasileira é altamente concentrada. Apenas 500 mil agricultores, 11,4% do total, produziram 87% do valor total da produção de 2006. Tais estatísticas motivam estudos para identificar fatores de importância para políticas públicas que levem à inclusão produtiva na agricultura do País. De fato, nossa principal instituição de pesquisa agrícola define ?inserção produtiva e redução da pobreza? como um dos eixos de impacto em seu planejamento estratégico para o período 2014?2034. O acesso à tecnologia é o principal fator causal da concentração da produção e, muito provavelmente, da pobreza nos campos. Nesse contexto, o setor agrícola demanda políticas públicas adequadas para melhorar o acesso à tecnologia e aumentar a inserção produtiva. As imperfeições de mercado formam o ambiente restritivo de acesso dos agricultores à tecnologia. São o resultado das assimetrias na disponibilidade de crédito à produção, na infraestrutura, na informação, na extensão rural e assistência técnica, entre outros.Ponto de Vista
Explaining agricultural and agrarian policies in developing countries
Political outcomes - such as agricultural taxation, subsidization, and the provision of public goods - result from political bargaining among interest groups. Such bargaining is likely to be efficiency-enhancing and growth-enhancing when equally powerful interest groups - aware of the economywide budget constraint and know the economic implications of different policy options - participate, and when impartial institutions are available to enforce decisions. The greater the deviation from these conditions, the greater the potential for efficiency-reducing outcomes, the costs of which will generally fall disproportionately on politically underrepresented or powerless groups. Material conditions of agriculture production - such as spatial dispersion, seasonal work cycles, covariance of risk, and the associated market imperfections - exacerbate the difficulties faced by small producers to engage in collective action. So, despite being generally the economically most efficient form of production, family farmers'ability to counteract the political influence of rural elites and urban dwellers is extremely limited. Lack of independent institutions and clearly defined property rights - and the presence of organizational residues - not only reduce peasants'bargaining power but may also make it more profitable for powerful groups to prefer rent seeking to productive activities. How can these undesirable outcomes be avoided, and how can sustainable policy changes be initiated? Experience indicates that fiscal crises of the state, often triggered or aggravated by an external shock, can cause lasting changes of policies and institutions. By forcing the state to devolve some of its power in exchange for financial assistance to meet its immediate needs, such a crisis can give rise to the emergence of independent legal, political, and economic institutions that are maintained even once the crisis has subsided, External actors that provide resources in terms of crisis and at the same time enhance the scope for politically least vocal parts of civil society to participate in political discourse can have a significant impact on changing policy. The paper discusses in detail the implications for research as well as for policy advice.Labor Policies,Economic Theory&Research,Agricultural Knowledge&Information Systems,Banks&Banking Reform,Environmental Economics&Policies,Environmental Economics&Policies,Economic Theory&Research,Banks&Banking Reform,Agricultural Knowledge&Information Systems,Health Economics&Finance
Produção orgânica na renda bruta agropecuária: estudo baseado nos dados do censo agropecuário de 2017.
RESUMO - O objetivo do trabalho é estudar a presença da agricultura e/ou pecuária orgânica na renda bruta dos estabelecimentos agropecuários recenseados em 2017. A análise está baseada nos dados agregados em escala municipal. Caracteriza-se regionalmente a presença da produção orgânica por meio de tabelas de contingência, via qui-quadrado e análise de covariância, tomando-se como variáveis contextuais: regiões, classes de renda, área, assistência técnica, cooperativismo, alfabetização, crédito e área. Ajusta-se, também, uma fronteira de produção estocástica que identifica, em nível do município, o efeito de fatores que afetam diretamente a produção (renda bruta) e a componente de ineficiência técnica. O número de estabelecimentos que praticam agricultura e/ou pecuária orgânica diminuiu de 90.498 (em 2006) para 64.690 (em 2017). A predominância de agricultura orgânica está no Sudeste e a menor proporção está no Centro-Oeste. A classe de renda bruta predominante para os estabelecimentos que praticam pecuária e/ou agricultura orgânica, em todas as regiões, é a classe entre zero a dois salários mínimos. O acesso ao crédito, a associação em cooperativas, o nível de alfabetização e o acesso à assistência técnica são os principais fatores necessários para promover a melhoria da renda. Os fatores de produção fundamentais para a inclusão produtiva são tecnologia e trabalho, com dominância da tecnologia. ABSTRACT - The objective of the work is to study the presence of organic agriculture and/or livestock on the income of agricultural establishments registered in the 2017 agricultural census. The analysis is based on data aggregated in a municipal scale. The presence of organic production is characterized regionally through contingency tables, via chi-square and covariance analysis, taking as contextual variables: regions, income classes, area, technical assistance, cooperatives, literacy, credit and area. A stochastic production frontier is also fit and identifies, at the municipality level, the effect of factors that directly affect production (gross income) and the technical inefficiency component. The number of establishments that practice organic agriculture and/or livestock decreased from 90,498 (in 2006) to 64,690 (in 2017). The predominance of organic agriculture is in the Southeast and the smallest proportion is in the Center-West. The predominant gross income class for establishments that practice livestock and/or organic agriculture, in all regions, is the class between zero to two minimum wages. Access to credit, membership in cooperatives, the level of literacy and access to technical assistance are the main factors necessary to promote income improvement. The fundamental input factors for productive inclusion are technology and labor with technology dominance.Título em inglês: Organic production on gross agricultural income: Study based on data from the 2017 agricultural census
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