IMPACTS OF AGRICULTURAL POLICY REFORM ON LAND PRICES: A QUANTITATIVE ANALYSIS OF THE LITERATURE

Agricultural policy support to farmers is being reconsidered in most industrialized countries. The adverse incentive structure of price support is generally considered to be inadequate. Income support schemes may therefore be preferable in view of externalities of agricultural production such as the development and maintenance of nature. A plethora of studies comprises estimates of the impact of a sustained future benefit stream (among other things through continued price and income support) on land prices. The empirical results of these studies vary considerably. We apply meta-analytical methods to identify the factors explaining this variation in capitalization of future benefits in agricultural land prices. The resultant information is of crucial importance given the current change from price support to income support in agricultural policymaking. The results of the meta-analysis show that there is considerable variation due to the way in which income is taken into account, and the way in which expectations of future benefits are operationalized. There is also evidence that a change from a mixed price and income support scheme to a system of income support will result in substantially lower capitalization in land values.Agricultural and Food Policy, Land Economics/Use,

Meta-Regression Estimates for CGE Models: A Case Study for Input Substitution Elasticities in Production Agriculture

The selection of appropriate parameters for computable general equilibrium (CGE) models critically affects the results of applied economic modeling exercises. Valid and reliable parameter selection models are needed, and typically comprise direct estimation, expert opinion, or copycatting of results from seminal studies. The purpose of this study is to use meta-analysis to summarize and more accurately estimate elasticities of input substitution, specifically between labor and other inputs in agricultural production. We construct a comprehensive database of elasticity estimates through an extensive literature review, and perform a meta-regression analysis to identify structural sources of variation in elasticity estimates sampled from primary studies. The use of meta-analysis contributes to improved baseline analysis in CGE simulations because it allows for the computation of input parameters tailored to a specific CGE model setup. We correct for variations in research design, which are typically constant within studies, and account for bias associated with undue selection effects associated with editorial publication decision processes. Improved accuracy and knowledge of the distribution of imputed input parameters derived from a meta-analysis contributes to improved performance of CGE sensitivity analyses.meta-analysis, cross-price elasticity, input substitu¬tion, agricultural production, CGE parameters, Demand and Price Analysis, C13, C68, Q13,

Farmland Allocation along the Rural-Urban Gradient: The Impacts of Urbanization and Urban Sprawl

In the vicinity of a city, farmers are confronted with increasing agricultural land prices and rents along the rural-urban gradient, but they concurrently enjoy the advantages associated with proximity to a larger and wealthier consumer base. We hypothesize that farmers transition from low-value, land-intensive \traditional" crops to high-value, labor-intensive \specialized" crops on parcels located closer to urban centers. Once returns to development of a parcel exceed the profits associated with farming, exurban farmers may sell their land for conversion to urban use. Urban pressure in the rural-urban fringe intensifies as cities expand. We differentiate between a gradual process of urban growth (or urbanization) and urban sprawl. Utilizing farmland fragmentation measures as indicators of sprawl, we hypothesize that urban sprawl burdens \traditional" farms to the extent that they accelerate the transition to specialized crops or convert farmland to urban use. We use crop-specific land cover data at the level of grid cells and a state-of-the-art system of spatially correlated simultaneous equations with data for the metropolitan area of Indianapolis, IN and its immediate hinterland. Our initial empirical results corroborate that accelerated urban development around Indianapolis in the 1990s is associated with land uses characterized by fewer field crops and more idle land.land use, urban sprawl, agriculture, specialized crops, spatial econometrics, Community/Rural/Urban Development, Land Economics/Use, C31, O13, Q15, R14,

Does Where You Live Make You Fat? Obesity and Access to Chain Grocers

This paper investigates the role that aspects of the physical environment play in determining health outcomes in adults as measured by body mass index (BMI). Using spatial econometric techniques that allow for spatial spillovers and feedback processes, this research specifically examines how differing levels of access to large chain grocers has on individual health outcomes. While other studies have investigated the impact of proximity to food retailers, the pointcoordinate data used in this paper is uniquely suited to spatial econometric estimation at the individual level. In addition to modeling spatial dependence and allowing for unobserved neighborhood effects, the flexibility of the model is increased by incorporating potential spatial heterogeneity between wealthier and lower-income neighborhoods. Using survey responses tied to geographic location, demographic, behavioral, and access to chain grocers, this study finds evidence of spatial dependence pointing to locational impacts on BMI. The effect on individual health outcomes of retailer access improvements varies depending on neighborhood characteristics. Our findings suggest structural differences in the variation and sensitivity of BMI dependent jointly on individual and neighborhood characteristics.body mass index, obesity, spatial dependence, obesogenic environments

FLOODING RISK AND HOUSING VALUES: AN ECONOMIC ASSESSMENT OF ENVIRONMENTAL HAZARD

Climate change, the ‘boom and bust’ cycles of rivers, and altered water resource management practice have caused significant changes in the spatial distribution of the risk of flooding. Hedonic pricing studies, predominantly for the US, have assessed the spatial incidence of risk and the associated implicit price of flooding risk. Using these implicit price estimates and their associated standard errors, we perform a meta-analysis and find that houses located in the 100-year floodplain have a –0.3 to –0.8% lower price. The actual occurrence of a flooding event or increased stringency in disclosure rules causes ex ante prices to differ from ex post prices, but these effects are small. The marginal willingness to pay for reduced risk exposure has increased over time, and it is slightly lower for areas with a higher per capita income. We show that obfuscating amenity effects and risk exposure associated with proximity to water causes systematic bias in the implicit price of flooding risk.Manufactured Housing; valuation, environmental risk, meta-analysis, hedonic pricing

Do jobs follow people or people follow jobs? A meta-analysis of Carlino-Mills studies

The issue whether ‘jobs follow people’ and/or ‘people follow jobs’ has recently emerged as one of the leading themes in regional and urban science. Much of the interest herein stems from alleged inconsistencies in the empirical evidence, which naturally raises questions as for the reasons why. Arguably, the nature of causality differs across space as well as time, while speculations have been rife about a number of methodological issues that may play a crucial role in shaping the research outcomes. In this paper a preliminary attempt is described to clarify these matters, by focusing on an articulate literature of 37 so-called ‘Carlino-Mills studies’. Specifically, a statistically supported literature review, referred to as ‘meta-analysis’, is presented in which the study results are evaluated and systematically related to a variety of study characteristics that underlie these results. By listing 308 study results reported in this literature, it is revealed that the empirical evidence is conform popular belief highly inconclusive, albeit that most of the results point towards ‘jobs follow people’. The findings of the meta-regression analyses indicate that the spatial setting of the study, the adopted model specification, and variables measurement in particular affect the research outcomes that indicate the jobs-people direction of causality. No evidence is found that the examination of data referring to a particular time period, population and/ or employment group make much of a difference.

A Meta-Analysis of the Willingness to Pay for Reductions in Pesticide Risk Exposure

The use of environmental policy instruments such as eco-labelling and pesticide taxes should preferably be based on disaggregate estimates of the individuals' willingness to pay (WTP) for pesticide risk reductions. We review the empirical valuation literature dealing with pesticide risk exposure and develop a taxonomy of environmental and human health risks associated with pesticide usage. Subsequently, we use meta-analysis to investigate the variation in WTP estimates for reduced pesticide risk exposure. Our findings show that the WTP for reduced risk exposure is approximately 15% greater for medium, and 80% greater for high risk-levels, as compared to low risk levels. The income elasticity of pesticide risk exposure is generally positive, although not overly robust. Most results indicate that the demand for human health and environmental safety is highly elastic. We also show that geographical differences, characteristics of the survey, and the type safety device (eco-labelling, integrated management, or bans) are important drivers of the valuation results.Institutional and Behavioral Economics,

Strategic Interaction and Spatial Multiplier Effects in Local Growth Control Policies: The California Housing Market

Since the 1970s, growth controls spread across many metropolitan regions in the United States. Several studies address the effects of local growth controls on housing markets, particularly its price effect, which is induced by rising construction cost, constrained housing supply, improved amenities, and market reorientation of homebuilders. However, only few studies explicitly address inter-jurisdictional spatial spillovers and strategic interaction of policy-makers of different jurisdictions in the design of growth control policies. This study focuses on two housing market outcomes, supply of new housing and market orientation, and utilizes a spatial econometric framework to systematically investigate local and global spatial spillovers giving rise to spatial multiplier effects. Preliminary results suggest that market orientation of new home building is primarily influenced by population growth and building permit caps, with positive spillovers at the local level only. For the supply of new housing, however, the models seem to suggest positive global spillover effects. However, there is additional indication of a potential relevance of including spatial heterogeneity in the model specification. Specifically, a north-south disparity or a coastal-inland disparity may have non-negligible impacts with concurrent implications for policy-making.spatial spillovers, growth controls, housing supply, market orientation, Public Economics, C21, H23, H73, R31,

EVOLUTION OF INVESTMENT FLOWS IN U.S. MANUFACTURING:A SPATIAL PANEL APPROACH

The paper starts with a discussion of a conceptual model of location factors in U.S. manufacturing investment at the state level. The purpose of the paper is to test the relative importance of growth factors influencing investment and whether or not they have changed in importance over time. These factors include agglomeration, market structure, labor, infrastructure, and fiscal policy. A better understanding of investment flows in the manufacturing sector will help determine how growth factors have changed over time and which economic development policies may be most appropriate at targeting the sector. The analysis covers the time period 1994 to 2006 for the 48 contiguous states, with data taken from the Annual Survey of Manufactures, the Bureau of Economic Analysis, and the Bureau of Labor Statistics. Panel methods are used to test for fixed effects due to heterogeneity across states. Spatial panel methods with time effects are used for determination and specification of spatial and temporal effects. Empirical results are consistent across the empirical models put forth. Results suggest that market demand remains one of the most important location factors of manufacturing investment. Investment also goes to states with more productive labor and localized agglomeration of manufacturing activity.manufacturing, investment, location factors

Obesity in Urban Food Markets: Evidence from Geo-referenced Micro Data

This paper provides quantitative estimates of the effect of proximity to fast food restaurants and grocery stores on obesity in urban food markets. Our empirical model combined georeferenced micro data on access to fast food restaurants and grocery stores with data about salient personal characteristics, individual behaviors, and neighborhood characteristics. We defined a "local food environment" for every individual utilizing 0.5-mile buffers around a person's home address. Local food landscapes are potentially endogenous due to spatial sorting of the population and food outlets, and the body mass index (BMI) values for individuals living close to each other are likely to be spatially correlated because of observed and unobserved individual and neighborhood effects. The potential biases associated with endogeneity and spatial correlation were handled using spatial econometric estimation techniques. Our policy simulations for Indianapolis, Indiana, focused on the importance of reducing the density of fast food restaurants or increasing access to grocery stores. We accounted for spatial heterogeneity in both the policy instruments and individual neighborhoods, and consistently found small but statistically significant effects for the hypothesized relationships between individual BMI values and the densities of fast food restaurants and grocery stores.obesity, fast food, grocery store, spatial econometrics, micro data, Agricultural and Food Policy, Community/Rural/Urban Development, Consumer/Household Economics, Food Consumption/Nutrition/Food Safety, Health Economics and Policy, Public Economics, Research Methods/ Statistical Methods, C31, D12, I12, I18,