Efficiency and Capital Structure in the Italian Cereal Sector

Farm capital structure may have contrasting effects on farm efficiency as a strand of the farm efficiency literature as pointed out ( for a review see for example Davidova and Latruffe 2007). Farmers often use external funding both to cover productions costs and to finance investments (machinery, equipment, buildings) to enhance farm economic performance. The debt is necessary to maintain or improve farm productivity and competitiveness by adopting technological innovation needed to increase farm efficiency. At the same time leverage may affects farm efficiency by influencing farm production decision constrained by lower farm expenditure capacity. In this case, farms response may rely on reducing the necessary expenditures to maintain the production assets with negative consequences on farm productivity, growth and efficiency. Finally, farm leverage may affects the farms capacity to react to market shocks adopting the needed strategic adjustments to maintain productivity, efficiency and competitiveness. A relevant case study for assessing this last effect would be the recent surge in price volatility that affected European and world cereal markets starting from 2008.The objective of this paper is to provide new empirical evidence on the relationship between farm capital structure and farm efficiency. In particular we will try to answer the following research question: does higher leverage lead to better performance? The food price volatility that has affected the cereal market from 2008 onwards is a possible stress for cereal farms that must adapt to the rapid drop in prices such as the one observed in 2010. Our research provide a first insight on the evolution of the cereal farms debt-technical efficiency relationship in times of high price volatility

An addendum to: a meta-analysis of hypothethical bias in stated preference valuation

<p>A recent study published by Murphy et al. (2005) reported results of a meta-analysis of hypothetical bias using 28 valuation studies. The authors found a median ratio of hypothetical to actual values of 1.35 but they did not investigate the ratio of variances of the hypothetical and actual value distributions, which is of great relevance in joint stated and revealed preference analysis. We propose an addendum to Murphy et al. (2005) to provide some insights on the distribution of the scale factor across 23 studies for which relevant data is available. We distinguish three types of dispersion parameters reported in the literature. We find that the ratio of real to hypothetical standard deviations of marginal distributions of WTP is about 0.6.</p

The impact of financial leverage on farm technical efficiency during periods of price instability

The main purpose of this work is to provide empirical evidence on the relationship between capital structure and technical efficiency for Italian cereal farms during the 2008 – 2014 period. Emphasis is given in the understanding of the relationship between the level of financial leverage for cereal farms and their production performance. The methods employed in this research article are based on non-parametric techniques in order to derive technical efficiency estimates for a sample of Italian cereal farms based on available Farm Accountancy Data Network data to explore in depth the relationship amongst the financial exposure of the sector and the capacity to utilise an efficient and effective production technology. Furthermore, subsidies are considered in the model as a non-discretionary variable and therefore, as an input that farmers cannot directly influence within the production function. Hence, the non-discretionary Data Envelopment Analysis model is a more appropriate framework since it is not penalising farms at a lower level of Pillar I payments when benchmarked with farms that receive higher level of payments. The results show that significant improvements could be achieved for most of the farms in the sample by improving production and management practices. Furthermore, results provide an empirical support of the adjustment theory by showing a negative impact of debt to asset ratio to technical efficiency. This research article provides a first insight on the evolution of the Italian cereal farms debt-technical efficiency relationship in periods where high price instability has been observed

Grass Root Collective Action for Territorially Integrated Food Supply Chains: A Case Study from Tuscany

The literature on environmental policy shows that institutional arrangements are key factors in designing effective environmental policies. Grass root collective action has been advocated as a possible solution for the provision of agro-environmental public goods. Building on this literature, we present a case study using a well-established theoretical framework emphasizing the role played by collective action in maintaining high quality production in a context of severe information asymmetries. We observed that several already known collective action features can be found in this successful experience. Maintaining such form of co-operation would help the chain to face the future challenges of the agricultural sector

Weldability and monitoring of resistance spot welding of Q&P and TRIP steels

This work aims at investigating the spot weldability of a new advanced Quenching and Partitioning (Q&amp;P) steel and a Transformation Induced Plasticity (TRIP) steel for automotive applications by evaluating the effects of the main welding parameters on the mechanical performance of their dissimilar spot welds. The welding current, the electrode tip voltage and the electrical resistance of sheet stack were monitored in order to detect any metal expulsion and to evaluate its severity, as well as to clarify its effect on spot strength. The joint strength was assessed by means of shear and cross tension tests. The corresponding fracture modes were determined through optical microscopy. The welding current is the main process parameter that affects the weld strength, followed by the clamping force and welding time. Metal expulsion can occur through a single large expulsion or multiple expulsions, whose effects on the shear and cross tension strength have been assessed. Longer welding times can limit the negative effect of an expulsion if it occurs in the first part of the joining process. The spot welds exhibit different fracture modes according to their strengths. Overall, a proper weldability window for the selected process parameters has been determined to obtain sound joints

Improvement of powertrain mechatronic systems for lean automotive manufacturing

In recent years, the increasing severity of emission standards forced car manufacturers to integrate vehicle powertrains with additional mechatronic elements, consisting in sensors, executors and controlling elements interacting with each other. However, the introduction of the best available ecological devices goes hand in hand with the legislation and/or limitations in different regional markets. Thus, the designers adapt the mechatronic system to the target emission standards of the produced powertrain. The software embedded into the Engine Control Unit (ECU) is highly customized for the specific configurations: variability in mechatronic systems leads to the development of several software versions, lowering the efficiency of the design phase. Therefore the employment of a standard for the communication among sensors, actuators and the ECU would allow the development of a unique software for different configurations; this would be beneficial from a manufacturing point of view, enabling the simplification of the design process. Obviously, the new software must still guarantee the proper level of feedbacks to the ECU to ensure the compliance with different emission standards and the proper engine behavior. The general software is adapted to the powertrain: according to the specific target emission standard, some control elements may not be necessary, and a part of the software may be easily removed. In this paper, starting from a real case-study, a more general methodology is proposed for configurations characterized by different powertrain sets and manufacturing line constraints. The proposed technique allows to maintain the accuracy of the control system and improve process efficiency at the same time, ensuring lean production and lowering manufacturing costs. A set of mathematical techniques to improve software efficacy is also presented: the resulting benefits are enhanced by software standardization, because the design effort may be shared by the largest possible number of applications

Public Food Procurement: A Systematic Literature Review

Public food procurement (PFP) is a policy instrument that has been used to “link” different objectives at once. We undertake a first systematic review of the scientific literature that deals with PFP in order to 1.) assess the progress of the scientific literature concerning PFP in different areas of the world, 2.) look for differences among them and try to identify the topics on which these studies focuses the most. Accordingly, our research questions deal with the definition of the main conceptual dimensions developed by the academic literature on PFP as well as with the geographical and temporal differences among the dimensions identified. The first evidence is the increase in the number of papers per year during the last decade. Furthermore, the literature on PFP is centred on the concepts of localisation and structured demand and its impacts on food chain actors, on citizen-consumers and on sustainability at large. As a main research result, we provide a conceptual framework of the PFP literature largely based on the concept of linkage that has been first proposed in law and regulation studies

Oxidative damage and mitochondrial functionality in hearts from KO UCP3 mice housed at thermoneutrality

The antioxidant role of mitochondrial uncoupling protein 3 (UCP3) is controversial. This work aimed to investigate the effects of UCP3 on the heart of mice housed at thermoneutral temperature, an experimental condition that avoids the effects of thermoregulation on mitochondrial activity and redox homeostasis, preventing the alterations related to these processes from confusing the results caused by the lack of UCP3. WT and KO UCP3 mice were acclimatized at 30 °C for 4 weeks and hearts were used to evaluate metabolic capacity and redox state. Tissue and mitochondrial respiration, the activities of the mitochondrial complexes, and the protein expression of mitochondrial complexes markers furnished information on mitochondrial functionality. The levels of lipid and protein oxidative damage markers, the activity of antioxidant enzymes, the reactive oxygen species levels, and the susceptibility to in vitro Fe-ascorbate-induced oxidative stress furnished information on redox state. UCP3 ablation reduced tissue and mitochondrial respiratory capacities, not affecting the mitochondrial content. In KO UCP3 mice, the mitochondrial complexes activities were lower than in WT without changes in their content. These effects were accompanied by an increase in the level of oxidative stress markers, ROS content, and in vitro susceptibility to oxidative stress, notwithstanding that the activities of antioxidant enzymes were not affected by UCP3 ablation. Such modifications are also associated with enhanced activation/phosphorylation of EIF2α, a marker of integrated stress response and endoplasmic reticulum stress (GRP778 BIP). The lack of UCP3 makes the heart more prone to oxidative insult by reducing oxygen consumption and increasing ROS. Our results demonstrate that UCP3 helps the cell to preserve mitochondrial function by mitigating oxidative stress