On the Microeconomics of Diversification under Uncertainty and Learning

This paper investigates the microeconomics of diversification, based on a two-period model of an owner-managed firm facing uncertainty. The analysis utilizes a general state-contingent representation of uncertainty and learning. Economies of diversification are defined based on a certainty equivalent, which has three components: expected profit, the risk premium (measuring the cost of risk aversion), and the value of information associated with learning. The influence of scale effects, "trans-ray concavity" effects, and income effects on economies of diversification are examined in detail. We argue that, while scope economies and risk aversion can provide general incentives for diversification, information and learning can have the opposite effect. By integrating scope, risk, and the role of information, our analysis provides new insights on existing economic tradeoffs between firm diversification and specialization.

An Empirical Investigation of Reputation Loan Size Dynamics in Rural Credit Markets in Honduras

This paper examines the role of two types of reputation - borrower credit history and productivity - in disequilibrium supply and demand models of loan size dynamics in formal and informal credit markets. Using panel data on Honduran households, full- and partialinformation regime switching econometric models yield four principal findings: (1) credit contracts in the formal sector are largely collateral driven and not reputation driven; (2) the informal sector credit contracts are borrower reputation based; (3) the informal sector utilizes positive/negative credit histories in both markets to credibly reward/punish borrowers; and (4) technical efficiency has a positive impact in determining loan size in both sectors on the demand and supply side of the market.

The Productivity Effects of Extension Appointments in Land Grant Colleges

A key piece in understanding the link between the extension and research missions of Land Grant universities is to understand the role of faculty with (and without) extension appointments within agricultural colleges. This article provides a comparative empirical portrayal of the primary activities of agricultural college faculty, and demonstrates the basic vitality of extension professors within the Land Grant system. Professors with smaller extension appointments are heavily engaged in the major research efforts of their universities at even greater levels of production than professors without extension responsibilities. Professors with heavy levels of extension appointments experience increasing tradeoffs between core extension activities and research outputs and graduate training. Professors with no extension appointments engage substantively in extension activities and frequently have links to core extension clientele.

LAND MARKET LIBERALIZATION AND WEALTH DIFFERENTIATED LAND ACCESS: PANEL EVIDENCE FROM HONDURAS AND PERU

We evaluate the impact of agricultural land market liberalization policies in Latin America by empirically examining the degree to which the reforms have broken down the dependence of operational area on owned area. We use panel data sets from Honduras and Peru to estimate the relationship between operational and owned land holdings for pre and post reform periods.Land Economics/Use,

A Dynamic Count Data Analysis of University Ag-Biotech Patents

This paper examines the factors that account for ag-biotech patenting success among universities using a dynamic count data model. It builds a theoretical and econometric model to capture the inherently dynamic and nonlinear process of technological innovation, wherein a feedback mechanism from previous success partially determines current patent counts. The econometric estimates reveal the importance to ag-biotech patent production of land grant infrastructure, quality faculty, state and institutional funding, patent-oriented technology transfer offices, as well as dynamic feedback effects.Research and Development/Tech Change/Emerging Technologies,

Wealth Accumulation and Activity Choice Evolution Among Amazonian Forest Peasant Households

This paper examines investment and livelihood decisions among forest peasant households in the Amazonian floodplain. A dynamic household model of multiple asset accumulation and activity choice under risk and credit constraints is developed by incorporating natural resource use and human capital evolution. Asset portfolios and sectoral incomes are estimated and then simulated to investigate the endowment and lifecycle dependency as well as the convergence/divergence of asset accumulation and corresponding activity choices. Physical asset endowment (especially land) and different human capital evolutions across activities help to explain forest peasants' livelihood choices, distinctive asset portfolios, and divergent income outcomes over the lifecycle.

ARE THERE SYNERGIES OR TRADEOFFS BETWEEN ARTICLES AND PATENTS IN UNIVERSITY AG-BIOTECH RESEARCH

This paper examines the empirical evidence for synergies or tradeoffs associated with the rapid rise of ag-biotech patenting at Land Grant Universities by examining the question of whether journal articles and patents appear to be complementary or competing activities in agricultural biotechnology research. The results show many synergies and none of the expected tradeoffs between the basic research represented in journal articles and the commercial proprietary research represented in patents.Research and Development/Tech Change/Emerging Technologies,

A Trait Specific Model of GM Crop Adoption among U.S. Corn Farmers in the Upper Midwest

This work offers a new approach to the adoption of GM crop varieties by adopting the econometric methodology of the characteristics-based demand literature. A random utility framework was implemented through different specifications of a conditional (CL) and a mixed multinomial logit (MMNL) model of crop-variety choice. Willingness-to-pay and price elasticity estimates for traits were calculated. The MMNL approach demonstrates that individuals' tastes for some traits significantly vary across the population. Results further suggest that labor saving technologies have a much wider potential to be adopted. Overall, the use of a trait-based model to examine the adoption patterns of GM crop varieties among corn farmers in Minnesota and Wisconsin reveals a new set of results and lessons that classic adoption models cannot provide.Research and Development/Tech Change/Emerging Technologies,

Trends in University Ag-Biotech Patent Production

This work exploits information on U.S. patents to identify trends in university ag-biotech patenting and citation performance. It sets forth some key issues concerning patterns of university ag-biotech patenting and then provides an empirical analysis on the evolving trends. Land Grant Universities account for most U.S. agbiotech patents. The data show a path dependent innovation pattern, in which there also seems to be a culture of patenting that develops at certain universities. Evidence shows that ag-biotech patents are more cited than the average university patent. Inequalities across Land Grant Universities are also evident in the production of agbiotech patents, although perhaps not to a much greater degree than underlying inequalities in funding and research qualities. The paper closes by considering how the evidence offered might be used to advance the public discussion regarding trends in agricultural biotechnology research in the U.S.Research and Development/Tech Change/Emerging Technologies,

TRENDS IN UNIVERSITY AG-BIOTECH PATENT PRODUCTION

This work exploits information on U.S. patents to identify trends in university ag-biotech patenting and citation performance. It sets forth some key issues concerning patterns of university ag-biotech patenting and then provides an empirical analysis on the evolving trends. Land Grant Universities account for most U.S. ag-biotech patents. The data show a path dependent innovation pattern, in which there also seems to be a culture of patenting that develops at certain universities. Evidence shows that ag-biotech patents are more cited than the average university patent. Inequalities across Land Grant Universities are also evident in the production of ag-biotech patents, although perhaps not to a much greater degree than underlying inequalities in funding and research qualities. The paper closes by considering how the evidence offered might be used to advance the public discussion regarding trends in agricultural biotechnology research in the U.S.Research and Development/Tech Change/Emerging Technologies,