Contractual relationships in the Hungarian milk sector

In this paper we present an empirical analysis of farmers' contracting choice in the Hungarian milk sector using 2005 milk producer survey data, employing transaction cost economics. We focus on analysing some key determinants of farmers' contracting choices: type of contracts, duration, number of contractors, incentives provided in the contract and business history of farmers and buyers. Some of the main results include the importance and effect of farm size, quantity of milk delivered, planned short and long run or contract related investment on farm, the possibility of farmer to influence prices on the contracting choices. --transaction costs,contracts,milk products,Hungary

Rokhlin dimension and topological dynamics

Wir studieren und verallgemeinern das Konzept der Rokhlin-Dimension (nach Hirshberg, Winter und Zacharias) von Gruppenwirkungen auf C-Stern-Algebren. Die Betrachtung von topologischen, freien Gruppenwirkungen ist dabei das Hauptanwendungsfeld. Als Hauptresultat zeigen wir, dass freie Z m-Wirkungen auf endlich-dimensionalen, kompakten metrischen Räumen stets endliche Rokhlin-Dimension haben. Insbesondere haben die zugeordneten Transformationsgruppen-C-Stern-Algebren automatisch endliche nukleare Dimension. Der Ansatz benutzt eine breite Verallgemeinerung von Gutmans Marker-Eigenschaft auf den Fall freier Gruppenwirkungen, welche im Fall von Z m eine besonders starke Variante zulässt, die die endliche Rokhlin-Dimension der Wirkung impliziert. Ein ähnliches Resultat wird auch für freie Wirkungen unendlicher, endlich erzeugter und nilpotenter Gruppen gezeigt.<br

Contractual relationships in the Hungarian milk sector

Purpose – The purpose of this paper is to analyse farmers’ contracting choice in the Hungarian milk sector, employing transaction cost economics framework. Design/methodology/approach – The authors focus on some key determinants of farmers’ contracting choices using milk producer survey data. Different semi parametric and semi non parametric discrete choice models are applied to investigate the type of contracts, duration, number of contractors, incentives provided in the contract and business history of farmers and buyers. Findings – Main results confirm that contract-specific investment is a strong predictor explaining contract choice and contract design. Although trust is an important factor, the authors’ estimations however report some counterintuitive results. Farm size is also significantly associated with contracts and contractual arrangements. Vulnerability to opportunistic behaviour also depends on partner change switching costs and farmers’ bargaining power. Originality/value – This is a recent study that investigates the role of contracts between producers and processors, significantly contributing to the limited literature on contractual relationships in transition agricultures. Keywords Transaction costs, Contracts, Agriculture, Milk, Milk products, Hungary Paper type Research pape

Benefits of a marketing cooperative in transition agriculture: Mórakert purchasing and service co-operative

The paper analyses the potential benefits of marketing cooperatives in Hungary, employing a transaction cost economics framework. We found that the purchased quantity, the existence of contracts, flexibility and trust are the most important factors farmers consider when selling their products via a cooperative. The most striking result is that diversification has positive influences on the share of cooperatives in farmers’ sale. Furthermore, farmers with larger bargaining power have less willingness to sell their product to the cooperative. Surprisingly, asset specificity has rather negative effects on the share of cooperatives in members’ sales