Endogeneity, heterogeneity, and determinants of inefficiency in Norwegian crop-producing farms

This is a PDF file of an unedited manuscript that has been accepted for publication. The manuscript will undergo copyediting, typesetting, and review of the resulting proof before it is published in its final form. Please note that during the production process errors may be discovered which could affect the content, and all legal disclaimers that apply to the journal pertain.This paper addresses the endogeneity of inputs and output (which is mostly ignored in the stochastic frontier (SF) literature) in the SF panel data model under the behavioural assumption that firms maximize returns to the outlay. We consider a four component SF panel data model in which the four components are: firms' latent heterogeneity, persistent inefficiency, transient inefficiency and random shocks. Second, we include determinants in transient inefficiency. Finally, to avoid the impact of distributional assumptions in estimating the technology parameters, we apply a multi-step estimation strategy to an unbalanced panel dataset from Norwegian crop-producing farms observed from 1993 to 2014. Distributional assumptions are made in second and third steps to predict both persistent and transient inefficiency, and their marginal effects. Keywords Efficiency; Endogeneity; Returns to the outlay; Panel dataacceptedVersio

RECOVERABLE COST: THE BASIS OF A GENERAL THEORY OF FINANCIAL ACCOUNTING MEASUREMENT

This paper addresses a very profound question concerning financial accounting. Is financial accounting measurement. as represented by diverse valuation rules. hodgepodge or is it logically developed? Salvary [1985. p.28. Chap. IV] advances and provides a theoretical development of the concept of 'recoverable cost' as the measurement property observed in (underlying) financial accounting measurement. Sa/vary [1989, pp.50-51] maintains that 'recoverable cost' is the center of 'economic gravity' and demonstrates that this valuation is derivable from axioms advanced. This paper provides a rigorous proof that 'recoverable cost' is the observed measurement property underlying financial accounting measurement. This analysis draws upon: (a) the concept of recovery underlying the investment decision and (b) the distinction between decision theory and measurement theory. It establishes recoverable cost as the measurement property in financial accounting and leads to the conclusion that financial accounting measurement is logically developed.measurement rules, capital budgeting, realizable value, lower of cost and market, capitalization, depreciation, decision theory, market simulation, asset specificity.

Agricultural Production Economics

Agricultural Production Economics (Second Edition, Amazon Createspace 2012) is a revised edition of the textbook Agricultural Production Economics published by Macmillan in 1986 (ISBN 0-02-328060-3). This is a free pdf download of the entire book. As the author, I own the copyright. Amazon markets bound print copies of the book at amazon.com at a nominal price for classroom use. The book can also be ordered through college bookstores using the following ISBN numbers: ISBN-13 978-1469960647 ISBN-10 1469960648 The format and coverage remains similar to the first edition, many small revisions and updates have been made. All graphs have been redrawn using the latest in computer imaging technology. The book contains a comprehensive treatment of the traditional agricultural production economics topics employing both detailed graphics and differential calculus. The text focuses on the neoclassical factor-product, factor-factor and product-product models, and is suitable for an advanced undergraduate or a beginning graduate-level course in static production economics. Chapters also deal with linear programming, risk and uncertainty and intertemporal resource allocation. A basic knowledge of differential calculus is assumed. Individual chapters are largely self-contained, and the book is suitable for instruction at a variety of levels depending on the specific needs of the instructor and the mathematics background of the students.https://uknowledge.uky.edu/agecon_textbooks/1000/thumbnail.jp

Socioeconomic assessment of marine fisheries of Thailand

Thailand is currently one of the ten largest fishing nations in the world. In 1996, fish production reached 3.7 million t with 90% of the production coming from the marine fisheries sector and 10% from inland fisheries. Thai fishing operates in four fishing grounds namely, the Gulf of Thailand, the Andaman Sea, the South China Sea and the Bay of Bengal. However with the establishment of the Exclusive Economic Zone (EEZ) in 1977, Thailand lost over 300 000 km2 of traditional fishing grounds. Gross domestic product (GDP) of Thailand was estimated at 4 598 billion Baht (US$181 billion at 1 US$ = 25.36 Baht) in 1996 with 87.8 billion Baht (US$3.46 billion) (1.9$4 million at 1 US$ = 31.18 Baht) or 69% (200 795 million Baht including fish) of the total agriculture exports and 7.3% (1 898 276 million Baht) of total exports. However, the rapid growth of manufacturing and service sectors has diminished the contribution of the fisheries sector to GDP in the recent years. Of the estimated 35.6 million labor force in Thailand in 1998, 43% were employed in the agricultural sector including fisheries. The 1995 Census of Marine Fishery showed that the total number of fishery households including fisheries employeesÆ households in the country was 109 635. No census was conducted for inland fisheries. The fisheries sector also supports a substantial level of employment in industries like fish processing, cold storage, fishmeal, ice making, boat construction and the like. The labor force of these industries was estimated to be at 211 682 in 1995. Fish is the primary source of animal protein for most of ThailandÆs population, particularly in the coastal and near-coastal provinces. The average per capita fish consumption is 24 kg annually. Marine capture fisheries can be broadly divided into commercial and small scale sub-sectors. Commercial vessels are those vessels over 10 m in length or 5 GT, that use modern fishing gear and have the capacity to fish offshore for several days. Small scale vessels are usually less than 10 m in length and either employ outboard- or inboard-engines, or are non-motorized and operate in near shore areas. From 1985 to 1995, the number of small scale fishing boats increased by 7.5%, while the commercial boats increased by 11%. One reason for the change has been the creation of a boat-tenure system within the commercial fishing sector, resulting in a decrease in the number of boats per household. The major fishing gear used by the small scale fishers are gillnets, small push nets, lift nets or other modern small scale gear, set traps, bagnets and other stationary gear in estuaries or protected inshore waters. In the fishing household of Songhkla Province, Southern Thailand, shrimp gillnets, cuttlefish trammel nets, Indo-Pacific mackerel gillnets, other gillnets and Acetes trawl nets are the major fishing gear. The fishers direct their effort towards high value species like shrimp, cuttlefish, pomfret fish and crabs, but they also obtain by-catch low value fish species. The most important determinant of profit for small scale fisheries is the interaction between types of gear and fishing ground. Commercial fishing vessels utilize otter trawls, pair trawls, beam trawls, push nets, purse seines and king mackerel gillnets as the major fishing gear. The analysis of investment, cost, revenue and return on demersal and pelagic fishing operations shows that (a) returns differ markedly among size of fishing boats and types of fishing gear; (b) ability to generate profit is greater in large fishing boats than small due to their higher ability to adjust to both economic (investment) and biological (fishing ground) changes; and (c) among the trawlers, medium and large boats can best adapt to maintain continuous profit, while for push nets, all size of boats show declining net profit. In pelagic fishing operations, purse seiners have been developed to make high profits and yield a higher return than trawlers and gillnet fishing operations. The Schaefer Model was applied to estimate the maximum sustainable yield (MSY) and maximum economic yield (MEY) for demersal fish and trash fish in the Gulf of Thailand. Results indicated that the present catch and the corresponding effort of demersal fishing in the Gulf of Thailand surpassed both MEY and MSY. In order to obtain the maximum net benefit in the long run, the present fishing effort of catching demersal fish must be reduced to about 50% of present levels. This would lead to the rehabilitation of marine resources and minimize the by-catch.Fishery resources, Fishery surveys, Catch/effort, Trawling, Population characteristics, Biomass, Coastal fisheries, Mathematical models, Marine fisheries, Ecosystems, Socioeconomic aspects, Artisanal fishing, Economic benefits, Fishery industry, Capture fishery economics, Fish consumption, ISEW, Thailand,

Net Returns for Grain Sorghum and Corn under Alternative Irrigation Systems in Western Kansas

This study evaluates seven irrigation systems for use in production of grain sorghum and corn. These systems are medium pressure center-pivot (MPCP), low pressure center-pivot (LPCP), low drift nozzle center-pivot (LDN) , low energy precision application center-pivot (LEPA), furrow flood (FF) , surge flood (SF), and subsurface drip (SD). After-tax net present value estimates from investing in and using each system over a 10-year period to produce grain sorghum and corn are compared. The surge flood system, has the highest net returns under typical conditions for irrigation of both grain sorghum and corn. The furrow flood system generates the next highest net returns for both crops, followed by the subsurface drip system. The medium pressure center-pivot system is the least profitable for both crops. Of the center-pivot systems, the low pressure system has the highest net return, but is followed very closely by the low drift nozzle system. The results of the sensitivity analysis indicate that the net return estimates and ranking of the subsurface drip system are very sensitive to the yield response to irrigation. Lower than average crop prices also have a substantial impact on the ranking of this system. The original investment cost is also an important determinant of its net return.Crop Production/Industries,

Hysterisis in Food Safety Investments

Concerns regarding the safety and integrity of the fresh produce supply chain are becoming all too common in the media. In 2006, an outbreak of E. coli O157:H7 from farms in Central California sickened almost two hundred people and lead to the deaths of three. Estimated costs to the industry ranged from $100 per month to$200 million until spinach sales returned to normal. By some accounts, the spinach industry has yet to recover and may not for years to come. The incident, however, has lead to a host of initiatives from industry officials, legislators and fresh produce retailers to ensure the safety of fresh produce. The necessary technology and best practices knowledge exists, yet some growers have not made the investment required to ensure that such outbreaks do not happen again in the future.Agribusiness, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Industrial Organization,

The Size, Growth and Profitability of Quoted Manufacturing Companies in Nigeria: Panel Data Analysis

The study examines the relationship among the size, growth and profitability of quoted manufacturing companies in Nigeria, using data from the Fact Books of Nigerian Stock Exchange between 2007 and 2011. For adequate capturing of the objectives, three models are formulated: growth is expressed as a function of size in the first equation, growth is expressed as a function of profitability in the second model, and size is expressed as a function of profitability in the third model. Panel data estimation technique is employed to capture the three models and the results of the study reveal that there is independent relationship between growth and size of the firms which is in line with Gibrat’s law. The study also indicates positive relationship between the growth and the profitability of the firms but statistically insignificant because the probability statistic is greater than 0.01 and 0.05 but it is rather 0.875. Moreso, the study reveals negative relationship between firm size and profitability and the coefficient of determination ( 16R2"> ) which is 0.82 indicates that about 82% variations in size of the firms can be explained by the variations in profitability. Based on the findings, the study therefore recommends that government should put in place policy options that can enhance manufacturing profitability in order to boost the performance of the sector and create employment in Nigeria. Keywords: Size, Growth, Profitability and Manufacturing Companies

Efficiency and Heterogeneity in Czech Food Processing Industry

Agribusiness,

Spatial Effects in Willingness-to-Pay: The Case of Two Nuclear Risks

This paper examines the spatial dimension of marginal willingness to pay (MWP) for reduction of nuclear risks through increased insurance coverage. The effect of distance from a nuclear power plant on individuals’ MWP is ambiguous. MWP is expected to decrease with distance because the risk of being affected by an accident decreases. However, if individuals choose their residential location taking the operational risk into account, MWP is predicted to first increase and later decrease with distance from the nuclear power plant. On the other hand, there are risks associated with transportation and disposal of nuclear waste where distance should matter only in the vicinity of the plant. These theoretical predictions are tested with data collected using a stated choice experiment. The predictions are largely confirmed by the evidence.stated choice experiment, liability insurance, nuclear accident, willingness to pay