Movement Restrictions, Agricultural Trade and Price Transmission between Israel and the West Bank

Imposing military security measures as a consequence of violent conflict may lead to depressing economic effects for all parties involved. One implication is the limited ability to conduct trade, which in turn brings about welfare losses to the economic agents involved and may threat livelihoods and food security. This paper focuses on the consequences of the Israeli-Palestinian conflict, as a prominent example, on bilateral agricultural trade and price dynamics. For this purpose, we consider high-frequency wholesale price data and data on movement restrictions (complete closures) which were imposed by the Israeli Defense Forces in the West Bank between May 2007 and December 2008. In particular, we study the price dynamics of cucumbers and apples, two crops which play an important role for bilateral trade. The spatial and temporal price relationships are assessed using a cointegration framework. Specifically, we use a novel multivariate exogenous regime-switching vector error correction model and employ a recently developed extension of Johansen’s cointegration estimation method. We find the wholesale markets of cucumbers and apples in Hebron and Tel Aviv to be integrated. For both products, the price differentials between both markets quickly adjust to short run deviations from the long-run price equilibria. The regime-dependent model suggests that the movement restrictions effectively cut off both markets from each other temporarily.Agricultural trade, cointegration, Israel, regime-dependent error correction, price transmission, Palestinian territories., International Relations/Trade, Marketing, Political Economy,

ASSESSING THE RESPONSE OF FARM HOUSEHOLDS TO DAIRY POLICY REFORM IN ISRAEL

After nearly fifty years of stability and stagnation of dairy market regulations in Israel, a dramatic policy reform has been enacted in 1999. The reform enabled farm households, for the first time, to trade production quotas. In addition, the reform signaled to farmers that milk prices will gradually go down in real terms, and therefore only producers who expand and become more efficient will prevail. The reform allowed for generous financial support for investment in expansion, but also required the adoption of environmental regulations which could be costly to many farm families. This paper uses data from a census of small family-operated dairy enterprises that was conducted in 2001, in order to analyze the response of farm households to the reform. The results imply that the reform was particularly attractive for already strong producers. Weaker producers are less attracted by the reform and will likely fade away by default in the long run. Another finding is that intergenerational succession is an important element of decision making of milk producers. Hence, the response of farm households to changes in the economic environment cannot be disentangled from the occupational decisions of their offspring. These findings imply that the desired structural change in the family-farm milk production sector will take much longer than expected, essentially as long as the current generation of producers is around. This requires, perhaps, an extension of the reform period or a change in incentives in favor of the smaller and older producers.milk policy reform, technology adoption, intergenerational succession, Agricultural and Food Policy, Livestock Production/Industries,

Greenhouse Gas Impacts of Ethanol from Iowa Corn: Life Cycle Analysis versus System-wide Accounting

Life cycle analysis (LCA) is the standard approach used to evaluate the greenhouse gas (GHG) benefits of biofuels. However, it is increasingly recognized that LCA results do not account for some impacts including land use changes that have important implications on GHGs. Thus, an alternative accounting system that goes beyond LCA is needed. In this paper, we contribute to the literature by laying out the basics of a system-wide accounting (SWA) method that takes into account all potential changes in GHGs resulting from biofuel expansion. We applied both LCA and SWA to assess the GHG impacts of ethanol based on Iowa corn. Growing corn in rotation with soybeans generated 35% less GHG emissions than growing corn after corn. Based on average corn production, ethanol's GHG benefits were lower in 2007 than in 2006 because of an increase in continuous corn in 2007. When only additional corn was considered, ethanol emitted about 22% less GHGs than gasoline. Results from SWA varied with the choice of baseline and the definition of geographical boundaries. Using 2006 as a baseline and 2007 as a scenario, corn ethanol's benefits were about 20% of the emissions of gasoline. If we expand geographical limits beyond Iowa, but assume the same emission rates for soybean production and land use changes as those in Iowa, then corn ethanol generated more GHG emissions than gasoline. These results highlight the importance of boundary definition for both LCA and SWAbiofuels, corn ethanol, greenhouse gas, life cycle analysis, system-wide accounting, Research Methods/ Statistical Methods, Resource /Energy Economics and Policy,

Assessing the response of farm households to dairy policy reform in Israel

After nearly fifty years of stability and stagnation of dairy market regulations in Israel, a dramatic policy reform has been enacted in 1999. The reform enabled farm households, for the first time, to trade production quotas. In addition, the reform signaled to farmers that milk prices will gradually go down in real terms, and therefore only producers who expand and become more efficient will prevail. The reform allowed for generous financial support for investment in expansion, but also required the adoption of environmental regulations which could be costly to many farm families. This paper uses data from a census of small family-operated dairy enterprises that was conducted in 2001, in order to analyze the response of farm households to the reform. The results imply that the reform was particularly attractive for already strong producers. Weaker producers are less attracted by the reform and will likely fade away by default in the long run. Another finding is that intergenerational succession is an important element of decision making of milk producers. Hence, the response of farm households to changes in the economic environment cannot be disentangled from the occupational decisions of their offspring. These findings imply that the desired structural change in the family-farm milk production sector will take much longer than expected, essentially as long as the current generation of producers is around. This requires, perhaps, an extension of the reform period or a change in incentives in favor of the smaller and older producers

State-Space Cointegration Modeling for the Analysis of Exogenous Shocks to Prices in Israeli-Palestinian Food Trade

The Israeli-Palestinian conflict constitutes a prominent example of a long-lasting political conflict which has major consequences for the livelihoods of the people on both sides. The agricultural sectors of the Palestinian and Israeli economies are tightly connected. However, various security measures occasionally implemented in consequence of the political conflict between Israelis and Palestinians strongly inhibit the movement of people and commodities. In order to obtain evidence on the impacts of such abrupt trade impediments on price dynamics, we estimate a vector error correction model in state space form employing the Kalman filter. The time-varying cointegration parameters suggest that the security measures indeed impacted price interdependencies on a short-term scale

Greenhouse gas impacts of ethanol from Iowa corn: Life cycle assessment versus system wide approach

Life cycle assessment (LCA) is the standard approach used to evaluate the greenhouse gas (GHG) benefits of biofuels. However, the need for the appropriate use of LCA in policy contexts is highlighted by recent findings that corn-based ethanol may actually increase GHG emissions. This is in contrary to most existing LCA results. LCA estimates can vary across studies due to heterogeneities in inputs and production technology. Whether marginal or average impacts are considered can matter as well. Most important of all, LCA is product-centered. The determination of the impact of biofuels expansion requires a system wide approach (SWA) that accounts for impacts on all affected products and processes. This paper presents both LCA and SWA for ethanol based on Iowa corn. LCA was conducted in several different ways. Growing corn in rotation with soybean generates 35% less GHG emissions than growing corn after corn. Based on average corn production, ethanol\u27s GHG benefits were lower in 2007 than in 2006 because of an increase in continuous corn in 2007. When only additional corn was considered, ethanol emitted about 22% less GHGs than gasoline. SWA was applied to two simple cases. Using 2006 as a baseline and 2007 as a scenario, corn ethanol\u27s benefits were about 20% of the emissions of gasoline. If geographical limits are expanded beyond Iowa, then corn ethanol could generate more GHG emissions than gasoline. These results highlight the importance of boundary definition for both LCA and SWA

Solitary waves and yrast states in Bose-Einstein condensed gases of atoms

Considering a Bose-Einstein condensed gas confined in one dimension with periodic boundary conditions, we demonstrate that, very generally, solitary-wave and rotational excitations coincide. This exact equivalence allows us to establish connections between a number of effects that are present in these two problems, many of which have been studied using the mean-field approximation.Comment: Revised version, where the generality of our arguments is presented more clearl

Wave chaos as signature for depletion of a Bose-Einstein condensate

We study the expansion of repulsively interacting Bose-Einstein condensates (BECs) in shallow one-dimensional potentials. We show for these systems that the onset of wave chaos in the Gross-Pitaevskii equation (GPE), i.e. the onset of exponential separation in Hilbert space of two nearby condensate wave functions, can be used as indication for the onset of depletion of the BEC and the occupation of excited modes within a many-body description. Comparison between the multiconfigurational time-dependent Hartree for bosons (MCTDHB) method and the GPE reveals a close correspondence between the many-body effect of depletion and the mean-field effect of wave chaos for a wide range of single-particle external potentials. In the regime of wave chaos the GPE fails to account for the fine-scale quantum fluctuations because many-body effects beyond the validity of the GPE are non-negligible. Surprisingly, despite the failure of the GPE to account for the depletion, coarse grained expectation values of the single-particle density such as the overall width of the atomic cloud agree very well with the many-body simulations. The time dependent depletion of the condensate could be investigated experimentally, e.g., via decay of coherence of the expanding atom cloud.Comment: 12 pages, 10 figure

HAT-P-5b: A Jupiter-like hot Jupiter Transiting a Bright Star

We report the discovery of a planet transiting a moderately bright (V = 12.00) G star, with an orbital period of 2.788491 +/-0.000025 days. From the transit light curve we determine that the radius of the planet is Rp = 1.257 +/- 0.053 RJup. HAT-P-5b has a mass of Mp = 1.06 +/- 0.11 MJup, similar to the average mass of previously-known transiting exoplanets, and a density of rho = 0.66 +/- 0.11 g cm^-3 . We find that the center of transit is Tc = 2,454,241.77663 +/- 0.00022 (HJD), and the total transit duration is 0.1217 +/- 0.0012 days.Comment: 5 pages, submitted to APJ