A Joint Framework for Analysis of Agri-Environmental Payment Programs

This paper presents an approach for simultaneously estimating farmers' decisions to accept incentive payments in return for adopting a bundle of environmentally benign management practices. Using the results of a multinomial probit analysis of surveys of over 1,000 farmers facing ten adoption decisions in an EQIP-type program, we show how the farmers' perceptions of the desirability of various bundles changes with the offer amounts and with which practices are offered in the program.incentive payments, EQIP, simulated multivariate normal, multinomial probit, simulated maximum likelihood estimation, best management practices, Environmental Economics and Policy,

Estimating Time Demand Elasticities Under Rationing

A multivariate extension of the standard labour supply model in presented. In the multivariate time allocation model leisure is disaggregated into a number of non market activities including sports, volunteer work and home production. Using data from the 2000 UK Time Use Survey, a linear expenditure system is estimated, allowing corner solutions in the time allocated to market work and non market activities. The effects of children, age, gender and education are largely as expected. The unusually high wage elasticities are attributed to a combination of the functional form of the linear expenditure and the treatment of the zero observations.Time use, Labour supply, Corner solutions, Simulation inference

Disentangling Specific Subsets of Innovations : A Micro-Econometric Analysis of their Determinants

Based on a unique firm-level data set from the German manufacturing sector, this paper disentangles environmental and non-environmental product and process innovations. The multivariate probit analysis shows that the various innovation types are determined by different factors. The estimation results suggest a policy mix which comprises the encouragement of R&D activities, certified management systems, and specific management activities referring to environmentally friendly products when the implementation of all innovation types is to be supported.Product and process innovations, Environmental and non-environmental innovations, Management systems, Multivariate probit models

Safety Nets or Trampolines? Federal Crop Insurance, Disaster Assistance, and the Farm Bill

We review the implications of the 2007 Farm Bill for the risk management dimensions of U.S. agriculture and policy. Legislative proposals suggest significant changes in risk management policy, including the introduction of state or national revenue insurance. We also pursue an empirical analysis of the interrelationships of crop insurance, disaster relief, and farm profitability. We find an inverse relationship between disaster assistance and insurance purchases. Our analysis also suggests that farmers that buy insurance and that receive disaster payments tend to have higher returns to farming.crop insurance, disaster payments, Farm Bill, Agribusiness, Agricultural and Food Policy, Crop Production/Industries, Risk and Uncertainty, Q18,

Sustainable economic growth within environmental limits. volume 1: guidance for the east midlands

LUC and GHK have developed a tool for setting environmental limits that local communities and other stakeholders can use. The three-step approach is based on the participation of the local community and other interested stakeholders, such as statutory agencies and businesses. It enables them to debate the use of important national, regional and local environmental assets, and the potential economic and social implications of setting environmental limits. The approach also provides a tool that can usefully support and inform other assessment requirements, such as Sustainability Appraisal/Strategic Environmental Assessment, Habitats Regulations Assessment and Equality Impact Assessment/Health Impact Assessment

Analyzing urban poverty: a summary of methods and approached

In recent years an extensive body of literature has emerged on the definition, measurement and analysis of poverty. Much of this literature focuses on analyzing poverty at the national level, or spatial disaggregation by general categories of urban or rural areas with adjustments made for regional price differentials. Yet for an individual city attempting to tackle the problems of urban poverty, this level of aggregation is not sufficient for answering specific questions such as where the poor are located in the city, whether there are differences between poor areas, if access to services varies by subgroup, whether specific programs are reaching the poorest, and how to design effective poverty reduction programs and policies. Answering these questions is critical, particularly for large, sprawling cities with highly diverse populations and growing problems of urban poverty. Understanding urban poverty presents a set of issues distinct from general poverty analysis and thus may require additional tools and techniques. This paper summarizes the main issues in conducting urban poverty analysis, with a focus on presenting a sample of case studies from urban areas that were implemented by a number of different agencies using a range of analytical approaches for studying urban poverty. Specific conclusions regarding design and analysis, data, timing, cost, and implementation issues are discussed.Public Health Promotion,Poverty Reduction Strategies,Health Economics&Finance,Poverty Monitoring&Analysis,Health Monitoring&Evaluation,Urban Partnerships&Poverty,Poverty Reduction Strategies,Health Economics&Finance,Poverty Assessment,City Development Strategies

Simulated Classical Tests in the Multiperiod Multinomial Probit Model

This paper compares different versions of the simulated counterparts of the Wald test, the score test, and the likelihood ratio test in the multiperiod multinomial probit model. Monte Carlo experiments show that the simple form of the simulated likelihood ratio test delivers the most favorable test results in the five-period three-alternative probit model considered here. This result applies to the deviation of the frequency of type I errors from the given significance levels as well as to the frequency of type II errors. In contrast, the inclusion of the quasi maximum likelihood theory into the simulated likelihood ratio test leads to substantial computational problems. The combination of this theory with the simulated Wald test or the simulated score test also produces no general advantages over the other versions of these two simulated classical tests. Neither an increase in the number of observations nor a rise in the number of random draws in the considered GHK simulator systematically lead to a more precise conformity between the frequency of type I errors and the basic significance levels. An increase in the number of observations merely reduces the frequency of type II errors. --Simulated classical tests,multiperiod multinomial probit model,Monte Carlo simulation

Individual Characteristics and Stated Preferences for Alternative Energy Sources and Propulsion Technologies in Vehicles: A Discrete Choice Analysis

This paper empirically examines the determinants of the demand for alternative energy sources and propulsion technologies in vehicles. The data stem from a stated preference discrete choice experiment with 598 potential car buyers. In order to simulate a realistic automobile purchase situation, seven alternatives were incorporated in each of the six choice sets, i.e. hybrid, gas, biofuel, hydrogen, and electric as well as the common fuels gasoline and diesel. The vehicle types were additionally characterized by a set of attributes, such as purchase price or motor power. Besides these vehicle attributes, our study particularly considers a multitude of individual characteristics, such as socio-demographic and vehicle purchase variables. The econometric analysis with multinomial probit models identifies some population groups with a higher propensity for alternative energy sources or propulsion technologies in vehicles, which can be focused by policy and automobile firms. For example, younger people and people who usually purchase environment-friendly products have a higher stated preference to purchase biofuel, hydrogen, and electric automobiles than other population groups. Methodologically, our study highlights the importance of the inclusion of taste persistence across the choice sets. Furthermore, it suggests a high number of random draws in the Geweke-Hajivassiliou-Keane simulator, which is incorporated in the simulated maximum likelihood estimation and the simulated testing of statistical hypotheses.Alternative energy sources and propulsion technologies in vehicles, stated preferences, discrete choice, multinomial probit models, unobserved heterogeneity, simulated maximum likelihood estimation

Complexity, concentration and contagion: A comment

Although the precise origins of the term “complex adaptive system” are unclear, nevertheless, the hackneyed phrase is now firmly ensconced in the lexicon of biologists, physicists, mathematicians, and, most recently, economists. However, as with many important ideas that become cliches, the original meaning is often obscured and diluted by popular usage. But thanks to the fascinating article by Gai, Haldane, and Kapadia (hereafter GHK), we have a concrete and practical instantiation of a complex adaptive system in economics, one that has real relevance to current policy debates regarding financial reform.MIT Laboratory for Financial Engineerin

PRODUCTION TERMINATION AS AN ALTERNATIVE TO MITIGATE NUTRIENT POLLUTION

Nutrient runoff from agricultural land can be reduced through production termination to mitigate water pollution. The willingness to accept value to terminate the broiler production is evaluated using sample selection model. The result showed a positive relationship between the decision to participation and stated WTA value indicating the producers are willing to terminate the production but at high cost. The farmer’s perception about government role on water pollution, farm income, information and awareness about other pollution reduction alternatives play a major role on stated WTA amount as well as on participation decision.Environmental Economics and Policy,