Optimal intertemporal investment in Australian agriculture: An empirical investigation

This paper empirically investigates optimal intertemporal investment behaviour of farmers in Australia. The dynamic investment model is estimated using pooled crosssectional and time-series farm survey data spanning the period 1979-1993. The model captures intertemporal investment behaviour of farmers, including independent and instantaneous adjustment decisions. Empirical test results indicate that labour, capital, sheep numbers and cattle numbers adjust sluggishly towards their long-run equilibrium levels. Results provide empirical evidence to indicate that adjustment problem is characteristic of production in agricultural zones Australia.Australia, agricultural zones, optimal intertemporal investment model, quaxi-fixity, adjustment costs, Farm Management, Research Methods/ Statistical Methods, C33, C12, C13, C61,

Empirical investigation of investment behaviour in Australia's pastoral region

Optimal intertemporal investment behaviour ofAustralian pastoralists is modelled using panel data for the period 1979–1993.Results indicate that quasi-fixity of inputs of labour, capital, sheep numbers and cattle numbers is characteristic of production in the pastoral region. It takes about two years for labour, four years for capital and a little over two years for both sheep numbers and cattle numbers to adjust towards long-run optimal levels. Results also indicate that, after accounting for adjustment costs, own-price product supply and input demand responses are inelastic in both the short and long run.adjustment costs, pastoralism, supply response, Agribusiness,

ON THE ESTIMATION OF DEMAND SYSTEMS WITH LARGE NUMBER OF GOODS: AN APPLICATION TO SOUTH AFRICA HOUSEHOLD FOOD DEMAND

The estimation of large demand systems to investigate the patterns of consumption of households is notoriously difficult. This study develops a modified Almost Ideal Demand System model based on a flexible two-stage budgeting demand modelling framework to examine the effect of estimation procedures (Bottom-up and Top-down) on South African household food consumption parameters. Household food consumption was divided into seven broad food groups: meat and fish; grains; dairy products; fruits; vegetables; other foods. The demand systems were estimated using data from the 1993 South Africa Integrated Household Survey (SIHS) conducted by the South African Labour and Development Research Unit (SALDRU). Empirical results indicate that the Top-down approach is more suited for estimation of South African household food demand. Results indicate that own-price do play an important role in influencing household food consumption. Results also indicate no presence of gross substitution between and within food groups. Expenditure elasticity estimates indicate that meat and fish, dairy products and fruits are luxury products, while grains, vegetables and other foods are necessities in South African household diet.Consumer/Household Economics, Research Methods/ Statistical Methods,

Improved maize adoption and impacts on farm household welfare : evidence from rural Ethiopia

The use of improved crop varieties can increase agricultural productivity and enhance the welfare of farmers. This study examined whether the adoption of improved maize varieties (IMV) is associated with the increased welfare of farmers in rural Ethiopia. A panel data set with 1886 observations collected in three waves from 2009/10 to 2014/15 were used for the analysis. The adoption decision was modelled using a double-hurdle model, and the welfare effect of IMV adoption was estimated using a fixed-effects instrumental variable approach. Our findings reveal that IMV affects the welfare of farmers. Specifically, we found that IMV adoption increases households' income, asset ownership and maize consumption while also reducing income poverty. The poverty estimates indicate that a 10% increase in the area allocated to IMV was associated with a 4.79% reduction in the probability of being below the $1.90 poverty line. However, the poverty-reducing effect of IMV adoption was heterogeneous across households, with the most pronounced effect experienced by households with extensive landholdings. Our findings suggest that facilitating access to IMV and land under cultivation can effectively improve farmers' welfare and reduce poverty in rural Ethiopia

Destination characteristics that drive hotel performance:a state-of-the-art global analysis

Abstract The increased market saturation and competition in both domestic and international tourism destinations have renewed interest among hotel operators in identifying the key drivers of hotel performance. This paper presents a comprehensive analysis of the determinants of hotel performance and their relative importance across multiple tourist destinations. We employ a two-step estimation method to identify key determinants of hotel performance, using a rich sample of international hotels. Our empirical analyses show that the main drivers of hotel performance are the quality of the educational system, government support, disposable income, and number of international arrivals within a tourism destination. Results indicate that the most important barriers to hotel performance are the competition among accommodation providers, tax rate and fuel price. We argue for the need for hotel providers to develop strategies that take cognisance of the key drivers and barriers to enhancing hotel performance in an ever-changing global tourism sector

Estimating The Demand For Food And Non-Food Items Using An Almost Ideal Demand System Modelling Approach

An Almost Ideal Demand System model is used to examine consumer behaviour in India using household survey data for the period 1973-74 through to 1993-94. The empirical results indicate that, for commodity groups, demand is inelastic, except for other foods and non-foods. The expenditure elasticity estimates indicate that milk and non-foods are luxury goods, while pulses, cereals, edible oil, meats, fruits and vegetables and other foods are necessities in the Indian diet. The results indicate that, for any increase in future expenditure, the largest percentage increase will be allocated to non-foods, followed by cereal, other foods, milk, fruits and vegetables, edible oil, pulses and meats, in that order. Estimates of future food supply and demand growth in India indicate that the gap between growth in domestic demand and domestic production is large, particularly for commodities such as pulses (deficit growing at 2.47% p.a.), but low for others like edible oils (0.02% p.a. deficit) and cereal (0.26% p.a. deficit). As a result, India is likely to see large increases in food imports in the future

The Structure of Production and Investment in Australia's Pastoral Zone

This paper develops a dynamic optimal intertemporal investment model under the adjustment cost hypothesis to analyse the structure of production and investment in Australia's pastoral zone. The dynamic model is applied to pooled cross-sectional and time-series data obtained from ABARE farm surveys for the period 1979 through to 1993. Empirical results provide strong statistical evidence to indicate that quasi-fixity of inputs of labour, capital, sheep numbers and cattle numbers are characteristic of the agricultural sector in the pastoral zone. The results reveal that it takes about two years for labour, a little over three years of capital, a little over two years for sheep flock inventory and cattle herd inventory to adjust toward their long-run optimal levels. Results indicate substitution between labour-capital and sheep-cattle input pairs. The results also indicate that output supply and input demand responses are price inelastic in both the short and long run

Pulse Policy Reform in India: Implications for Trade, Prices and Production, 1970-1999

India is a major producer and consumer of pulses in the world. In the last two decades, India’s pulse economy has undergone major policy and institutional reforms. These changes are likely to influence India’s trade in pulses and consequently world pulse trade. This article examines the impact of these reforms on trade, prices and production in India. The article discusses the factors that instigated these policy reforms and the consequences. The results indicate that a number of key economic, political and technological factors are reshaping pulse trade in India. The policy implications of the findings are explored

Persistence in regional hidden unemployment disparities in Australia

The purpose of this study is to investigate persistence in regional (state) hidden unemployment disparity in Australia. Quarterly time series data spanning the period 1978 through to 2003 were employed in the analyses. Empirical results indicate that cyclical sensitivity of hidden unemployment series is more pronounced in Tasmania and least pronounced in New South Wales. The hidden unemployment differentials appear to be more pronounced during periods following a recession than in a boom. Results also indicate that the levels of hidden unemployed were higher in the 1990s compared with the 1980s. Co-integration analyses indicate a lack of synchronicity of regional and national hidden unemployment series in Australia

Estimation of food demand patterns in South Africa based on a survey of households

South Africa is emerging as a major player in the world agricultural products market. This study investigates aggregate food demand patterns in South Africa using a LA/AIDS modelling framework. Data from 1993 integrated national household survey are employed in the analysis. Empirical results show that demand for meat and fish, grains, dairy products, fruits, vegetables and other foods are generally price elastic. The expenditure elasticities imply that meat and fish and grains are luxury products, while dairy products, fruits, vegetables and other foods are necessities in the household diet. The results also indicate that, if income of households increases food expenditure on meat and fish and grains would increase while that on dairy products, fruits, vegetables and other foods would decrease. Race, age, and gender of household head, urbanisation and family size affect food demand in South Africa