About the Efficiency of Input vs. Output Quotas

Output quotas are known to be more efficient than input quotas in transferring surplus from consumers to producers. Input quotas, by distorting the shadow prices of inputs, lead to inefficient production and generate larger deadweight losses, for a given amount of surplus transferred. Yet, input quotas have been a ubiquitous tool in agricultural policy. Practicality considerations, as well as the difficulty to control outputs that heavily depend on stochastic weather conditions, are arguments that help understand why policy makers may favor input quotas over output quotas. In this paper, we offer an additional explanation that rests on efficiency considerations. Assuming that the regulator only has limited knowledge about the market fundamentals (supply and demand elasticities, among others), seeks to transfer at least a given amount of surplus to producers and is influenced by the industry in his choice of the quota level, we show that an input quota becomes the optimal policy.Agricultural and Food Policy, H2, L2, Q1,

Is There Market Power in the French Comte Cheese Market?

An NEIO approach is used to measure seller market power in the French Comté cheese market, characterised by government-approved supply control. The estimation is performed on quarterly data at the wholesale stage over the period 1985-2005. Three different elasticity shifters are included in the demand specification, and the supply equation accounts for the existence of the European dairy quota policy. The market power estimate is small and statistically insignificant. Monopoly is rejected, as well as weak forms of Cournot oligopoly. Results appear to be robust to the choice of functional form, and suggest little effect of the supply control scheme on consumer prices.Supply control, NEIO, protected designation of origin, Marketing,

Spatial navigation and multiscale representation by hippocampal place cells

Hippocampal lesions are known to impair success in navigation tasks. While such tasks could be solved by memorizing complete paths from a starting location to the goal, animals still perform successfully when placed in a novel starting position. We propose a navigation algorithm to solve the latter problem by exploiting two facts about hippocampal organization: (1) The size of the place fields of hippocampal place cells varies systematically along the dorsoventral axis, with dorsal place cells having smaller place fields than ventral (Kjelstrup et. al. 2008); and (2) the theta oscillation propagates as a traveling wave from dorsal to ventral hippocampus (Lubenov and Siapas, 2009). Taken together, these observations imply that the hippocampal representation of space progresses from fine- to coarse-grained within every theta cycle. 

The algorithm assumes that place cells can be activated by the animal's imagining a goal location, in addition to physically standing in the appropriate location. In the proposed algorithm, place cell activation propagates from small scale to large scale until place cells are found which respond strongly to both the physical location and the goal location. These place fields have their centers aligned roughly in the direction of the goal, providing a crude estimate of which direction the animal should step to approach the goal. Fine-grained directional information is contained in the smaller scale place fields within these large ones. Our algorithm therefore identifies a sequence of place cells, one from each scale, whose centers lie roughly along the line to the goal. 

Simulations reveal successful navigation to the goal, even around obstacles. By minimizing the number of steps the animal takes to reach the goal, we predict the organization of the optimal place field "map"; specifically the fraction of place cells which should be allocated to each spatial scale. This prediction is, in principle, experimentally testable.

The set of place fields with centers lying along a line to the goal is used to compute a step direction by maximizing the probability that those cells will be active in the next time step, given that a particular step direction is chosen.

The proposed algorithm handles navigation around obstacles by including "border cells" (Solstad et. al. 2008) which inhibit place cells in proportion to the degree of overlap between the place field and the obstacle. Furthermore, including firing rate adaptation of place cells prevents the animal from getting stuck in one spot

Calibrating a regional PMP model of agricultural supply under multiple constraints: a set of matryoshka doll conditions

Risk and Uncertainty,

Will Geographical Indications Supply Excessive Quality?

Consumer/Household Economics, Marketing,

The different time course of phonotactic constraint learning in children and adults : evidence from speech errors

Speech errors typically respect the speaker’s implicit knowledge of language-wide phonotactics (e.g., /ŋ/ cannot be a syllable onset in the English language). Previous work demonstrated that adults can learn novel experimentally-induced phonotactic constraints by producing syllable strings in which the allowable position of a phoneme depends on another phoneme within the sequence (e.g., /t/ can only be an onset if the medial vowel is /i/), but not earlier than the second day of training. Thus far, no work has been done with children. In the current 4-day experiment, a group of Dutch-speaking adults and nine-year-old children were asked to rapidly recite sequences of novel word-forms (e.g., kieng nief siet hiem) that were consistent with phonotactics of the spoken Dutch language. Within the procedure of the experiment, some consonants (i.e., /t/ and /k/) were restricted to onset or coda position depending on the medial vowel (i.e., /i/ or “ie” versus /øː/ or “eu”). Speech errors in adults revealed a learning effect for the novel constraints on the second day of learning, consistent with earlier findings. A post-hoc analysis at trial-level showed that learning was statistically reliable after an exposure of 120 sequence-trials (including a consolidation period). In contrast, cChildren, however, started learning the constraints already on the first day. More precisely, the effect appeared significantly after an exposure of 24 sequences. These findings indicate that children are rapid implicit learners of novel phonotactics, which bears important implications for theorizing about developmental sensitivities in language learning