EXPLAINING THE ADOPTION AND DISADOPTION OF SUSTAINABLE AGRICULTURE: THE CASE OF COVER CROPS IN NORTHERN HONDURAS

Although technology adoption has been the subject of a great deal of economic research, that focused on the economics of adoption of low-input "sustainable" systems has been much more limited and recent. This paper attempts to explain the recent decline in the use of cover crops using in maize farming in the Department of Atlantida, Honduras. In the early 1970's, farmers in the region began rotating maize with the velvetbean (mucuna ssp.), a system learned from Guatemalan immigrants. Tohe mucuna-maize system decreased the labor required for maize farming even as it increased yields, prevented erosion, and conferred a variety of other agronomic benefits. By 1992, estimates show that the system had diffused among more than 60% of farmers in the Department. Both due to this widespread dissemination, and the fact that diffusion was largely spontaneous (unassisted by extensions and NGOs), the maize-mucuna system has become a widely acknowledged "success story" of sustainable agriculture diffusion. However, recent anecdotal evidence, confirmed by the survey research reported here, shows that by the late 1990s, use of the system had begun to decline sharply. Various hypotheses about the cause of this decline were investigated in this research, including whether the abandonment of the mucuna-maize system is attributable to a generalized decline in maize cultivation, changes in land tenure and distribution, a burgeoning cattle industry, infrastructural improvements, widespread infestations of noxious weed (rottboellia cochinchinensis), or limitations in farmer management. Modeling techniques evaluated two land-use decisions: whether to adopt mucuna-maize and the contingent decision of whether to abandon the system, once adopted. Bivariate probit analysis is used in the econometric analysis. Descriptive statistics and econometric results indicate that age, level of income from non-maize sources, the presence of rottboellia, and access to a road or highway are significantly related to the abandonment of overcropping. Meanwhile, greater dedication to maize, diversification into high value crops, greater experience with the system, and annual reseeding of mucuna are associated with continued use of the mucuna-maize rotation. The empirical results overall demonstrate that the phenomenon of maize-muchuna adoption and abandonment is a highly complex process. The results have policy implications for the "farmer to farmer" model of extension as well as the promotion of mucuna-maize as a sustainable agriculture technique. In the first case, less emphasis on diffusion and greater attention to farmer-to-farmer teaching of crop system dynamics may be important for the durability of cover crop systems. Regarding the second, cover crop species like mucuna should not be viewed as "silver bullet" solution to sustaining low-input agriculture: indeed, exclusive rotation of mucuna with maize may eliminate critical sources of plant and animal species diversity, ultimately undermining the system itself.International development, Sustainable agriculture, Adoption, Disadoption, Farmer management, Crop Production/Industries,

Evaluating transfer programs within a general equilibrium framework

The authors set out a general equilibrium model for the evaluation of a domestically financed transfer program, which helps to combine the results from a computable general equilibrium model with disaggregated household data.Using a Mexican cash transfer program as an illustration, they use the approach to show that the substantial welfare gains that result from the switch from universal food subsidies to targeted cash transfers reflect both the improved targeting efficiency of the latter as well as a relaxation of the trade-off between equity and efficiency objectives when designing tax systems.Subsidies Mexico. ,Transfer payments. ,Equilibrium (Economics) Models. ,

Evaluating transfer programs within a general equilibrium framework

The authors set out a general equilibrium model for the evaluation of a domestically financed transfer program, which helps to combine the results from a computable general equilibrium model with disaggregated household data.Using a Mexican cash transfer program as an illustration, they use the approach to show that the substantial welfare gains that result from the switch from universal food subsidies to targeted cash transfers reflect both the improved targeting efficiency of the latter as well as a relaxation of the trade-off between equity and efficiency objectives when designing tax systems.FCND ,Subsidies Mexico. ,Transfer payments. ,Equilibrium (Economics) Models. ,

A regional general equilibrium analysis of the welfare impact of cash transfers

Using a regionally disaggregated computable general equilibrium model, we analyze the differential welfare impacts of a cash transfer program targeted at rural areas. The direct effect of the transfers decreases regional income differentials, but the indirect effects depend on how the program is financed. Financing the program with a more efficient tax system is also less regressive and has favorable urban impacts. The less efficient instruments result in relatively higher incomes in all rural regions, but are more regressive. The increasing share of urban poverty highlights the shortcomings of rural targeting and raises the issue of horizontal equity.Welfare economics. ,Rural population. ,Econometric models. ,TMD ,

EGG PRICES REVISITED

Recent egg price quotes are evaluated in a vector autoregression. The results indicate that empirical relationships observed over the period 1975-1976 differ from those observed over the period 1979-1982.Demand and Price Analysis,

The Grassmannian Sigma Model in SU(2) Yang-Mills Theory

Spin-charge separation in pure SU(2) Yang-Mills theory was recently found to involve the dynamics of an O(3) non-linear sigma model and, seemingly, a Grassmannian non-linear sigma model. In this article we explicitly construct the Grassmannian sigma model of the form appearing in the the spin-charge separated SU(2) theory through a quaternionic decomposition of the manifold, thus verifying its relevance in this context. The coupling between this model and the O(3) non-linear sigma model is further commented upon.Comment: 11 pages, undergraduate research project; version published in J. Phys.

Flux reversal in a two-state symmetric optical thermal ratchet

A Brownian particle's random motions can be rectified by a periodic potential energy landscape that alternates between two states, even if both states are spatially symmetric. If the two states differ only by a discrete translation, the direction of the ratchet-driven current can be reversed by changing their relative durations. We experimentally demonstrate flux reversal in a symmetric two-state ratchet by tracking the motions of colloidal spheres moving through large arrays of discrete potential energy wells created with dynamic holographic optical tweezers. The model's simplicity and high degree of symmetry suggest possible applications in molecular-scale motors.Comment: 4 pages, 5 figures, accepted for publication in Physical Review E, Rapid Communication

A Multi-Factor Analysis of AREIT Returns

Since 1990, the Australian Real Estate Investment Trust (AREIT) sector has experienced substantial growth and popularity. While the AREIT sector had benefit from the increased flow of funds from institutional investors during the 1997 Asian financial crisis, the recent impact of the 2008 global financial crisis has been a negative one. In this paper, we examine the sensitivities of annualised AREIT returns against a set of seven firm-specific variables and four market-wide risk variables. Balanced and unbalanced panel regressions are conducted on three sub-periods during 1990 - 2008 corresponding to the major phases in evolution of the AREIT sector. Our regression results find that size has a negative impact on returns, and this effect has been diminishing over time. Overall market risk was also found to be significant and positive only since 2003, suggesting that recently AREITs behave more like stocks and less like defensive assets. The relationship with exchange rate risk has been positive in recent years, due to more AREITs choosing to diversify internationally, particularly in the U.S. property markets. Our findings on the relationship between market-to-book ratios and AREIT returns depart from standard finance literature. In comparison to REITs in other countries, AREITs have shifted their preferences away from property-type diversification and into more specialised investment strategies. We also find contrasting evidence on the impact of international diversification, and that domestic AREITs provide better returns than internationally diversified counterparts. The relationship between returns and short term interest rates was found to be positive and significant prior to 2002, and the relationship with long-term interest rates was found to be negative and significant since 2003, suggesting that AREITs exhibit less bond-like characteristics in the past five years.AREITs, AREIT returns, Property-type diversification, International diversification, Panel regressions