Renationalization of the Common Agricultural Policy: Mission Impossible?

The Common Agricultural Policy (CAP) of the EU does not currently meet the different needs of diverse agricultural conditions of different member countries in a just and equal way. To meet this challenge has become inevitably more difficult as new and diverse Central and Eastern European countries have entered the Community. Several commentators and economists have thus suggested that a renationalization of the CAP would be an applicable way to proceed in an attempt to pursue a policy sensitive enough to national and regional or local needs and priorities. Renationalization mainly deals with two issues: (i) should member states have more power and freedom on decisions of agricultural policy, and (ii) should there be a shift from common financing back to national funds? This paper discusses these issues from a political-economy perspective.CAP, Renationalization, Regionalization, Subsidiary, Agricultural and Food Policy,

Technical Barrier Effects of a Food Safety Measure – a Case of Finnish Salmonella Control Program

In this paper, indirect costs of Finnish Salmonella Control Program (FSCP) due to its trade effects are evaluated. FSCP is a part of Finnish biosecurity policies intended to shield Finnish food supply and consumption chain from salmonella outbreaks. The program directly increases costs of importing by e.g. requiring costly certificates for imports. Additionally, it may cause anxiety to suppliers of imports as there are added uncertainties in the import process. As similar requirements apply to domestic suppliers, the program should not be thought of as a technical trade barrier (TBT), however, it may affect trade flows indirectly and effects may be assessed in a similar manner as those of TBT’s. The evaluation of the trade effects is performed using a combined price wedge-gravity approach and they are quantified as tariff-equivalents. After determining the tariff equivalent, sensitivity results are provided as some of the parameter values used in the calculation are difficult to observe directly.International trade, biosecurity, welfare analysis, Food Consumption/Nutrition/Food Safety,

Towards a Theory of Policy Making

The paper presents a theory of policy timing that relies on uncertainty and transaction costs to explain the optimal timing and length of policy reforms. Delaying reforms resolves some uncertainty by gaining valuable information and saves transaction costs. Implementing reforms without waiting increases welfare by adjusting domestic policies to changed market parameters. Optimal policy timing is found by balancing the trade-off between delaying reforms and implementing reforms without waiting. Our theory offers an explanation of why countries differ with respect to the length of their policy reforms, and why applied studies often judge agricultural policies to be inefficient.Policy analysis, Uncertainty, Dynamic model, Transaction costs, Agricultural and Food Policy,

The Economics of Delaying Policy Change: An Application to the 1992 CAP Reform

Positive political economy is usually concerned with economic explanations of observed policy choices, while the timing of a policy reform has not gained similar attention. This is somewhat surprising since policy makers most often are free to decide both the design and timing of a policy reform. Drawing on insights from recent developments in the finance literature on investment under uncertainty, here we apply the idea of option value to the analysis of government policy making. Common political-economic explanations of the 1992 CAP reform are that policymakers felt domestic political pressure to make the CAP more efficient, and also international political pressure and to bring the CAP in line with treaty obligations. Although these arguments are sound, they fail to explain why policy-makers did not enact the reform earlier, especially during times of decreasing world market prices prior to 1992. We address this question using the theory of option value, which is the value of being able to wait in decisionmaking. Commonly governments are free to decide when to reform policy. Waiting to reform policy can improve government decisions. For while waiting decision-makers may observe market parameter changes as they occur. (For example, they may obtain better information about changes in world prices.) This reduces their uncertainty about the effects of their decisions. Giving up the option to wait incurs a cost which has to be taken into account in policy decisions. We illustrate the option value concept using a political-economy model of the 1992 CAP reform. We show empirically that if decision-makers had not had the option to wait to reform policy, it would have been more efficient to implement the 1992 CAP reform in the mid 1980s.Agricultural and Food Policy,

ROSAT and BeppoSAX evidence of soft X-ray excess emission in the Shapley supercluster: A3571, A3558, A3560 and A3562

Excess soft X-ray emission in clusters of galaxies has so far been detected for sources that lie along lines-of-sight to very low Galactic HI column density (such as Coma, A1795, A2199 and Virgo, N_H 0.9-2.0 10^{20} cm-2). We show that the cluster soft excess emission can be investigated even at higher N_H, which provides an opportunity for investigating soft X-ray emission characteristics among a large number of clusters. The ROSAT PSPC analysis of some members of the Shapley concentration (A3571, A3558, A3560 and A3562, at N_H 4-4.5 10^{20} cm-2) bears evidence for excess emission in the 1/4 keV band. We were able to confirm the finding for the case of A3571 by a pointed SAX observation. Within the current sample the soft X-ray flux is again found to be consistently above the level expected from a hot virialized plasma. The data quality is however insufficient to enable a discrimination between alternative models of the excess low energy flux.Comment: ApJL in press, 5 figure

Master-equation analysis of accelerating networks

In many real-world networks, the rates of node and link addition are time dependent. This observation motivates the definition of accelerating networks. There has been relatively little investigation of accelerating networks and previous efforts at analyzing their degree distributions have employed mean-field techniques. By contrast, we show that it is possible to apply a master-equation approach to such network development. We provide full time-dependent expressions for the evolution of the degree distributions for the canonical situations of random and preferential attachment in networks undergoing constant acceleration. These results are in excellent agreement with results obtained from simulations. We note that a growing, non-equilibrium network undergoing constant acceleration with random attachment is equivalent to a classical random graph, bridging the gap between non-equilibrium and classical equilibrium networks.Comment: 6 pages, 1 figure, 1 tabl

Generalizations of the clustering coefficient to weighted complex networks

The recent high level of interest in weighted complex networks gives rise to a need to develop new measures and to generalize existing ones to take the weights of links into account. Here we focus on various generalizations of the clustering coefficient, which is one of the central characteristics in the complex network theory. We present a comparative study of the several suggestions introduced in the literature, and point out their advantages and limitations. The concepts are illustrated by simple examples as well as by empirical data of the world trade and weighted coauthorship networks.Comment: 4 pages, 1 table, 3 figures; revised versio

Cooling of radiative quantum-dot excitons by terahertz radiation: A spin-resolved Monte Carlo carrier dynamics model

We have developed a theoretical model to analyze the anomalous cooling of radiative quantum dot (QD) excitons by THz radiation reported by Yusa et al [Proc. 24th ICPS, 1083 (1998)]. We have made three-dimensional (3D) modeling of the strain and the piezoelectric field and calculated the 3D density of states of strain induced quantum dots. On the basis of this analysis we have developed a spin dependent Monte Carlo model, which describes the carrier dynamics in QD's when the intraband relaxation is modulated by THz radiation. We show that THz radiation causes resonance transfer of holes from dark to radiative states in strain-induced QD's. The transition includes a spatial transfer of holes from the piezoelectric potential mimima to the deformation potential minimum. This phenomenon strongly enhances the QD ground state luminescence at the expense of the luminescence from higher states. Our model also reproduces the delayed flash of QD ground state luminescence, activated by THz radiation even $\sim1$ s after the carrier generation. Our simulations suggest a more general possibility to cool the radiative exciton subsystem in optoelectronic devices.Comment: 18 pages, 1 table, 8 figures, submitted to Physical Review B v2: major conceptual changes. The article was extended considerably to suit Physical Review B (instead of Physical Review Letters