Get Agricultural Economics and Policy: International Challenges PDF

By KEES BURGER, MARTIJN DE GROOT, JAAP POST and VINUS ZACHARIASSE (Eds.)

ISBN-10: 044459955X

ISBN-13: 9780444599551

Overseas demanding situations in agricultural economics for the nineties will come from a redirection of the EC coverage, inspired via GATT negotiations, the outlet in the direction of jap Europe and environmental concerns, from a creation orientated coverage in the direction of rural coverage, aiming at retaining susceptible areas, keeping a rural inhabitants, curbing construction within the West and fostering it within the East, and Read more...

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Additional resources for Agricultural Economics and Policy: International Challenges for the Nineties

Example text

I (26), b* = Σ τ ^ b{ i (27), c* = Σ η . c{ i (28) x t = Σ x i t = Σ ( u i t - v i t) = u t - v t i i (29) C = 2^Ci(H) (30) The asymptotic world price variance u n d e r the assumption that individualcountry shocks are u n c o r r e c t e d , is given by the following expression: ( 2 4 26 ν Σ σ. 2 1 1 2 °pw = 3 1 < ) 2 ( l - p ) ( a % c * + C + a*(l-p)) 2 where σ? = Var (u - v ) = o + c - 2r o σ (32) 2 it it u i yi t u i ν ί and o u i , σ ν ί denote the standard deviation of the r a n d o m terms affecting production and consumption in country i a n d in their coefficient of correlation.

In this p a p e r this a r g u m e n t will be analysed theoretically, and some empirical observations will be m a d e in addition. 2. The current thinking on the impact of agricultural trade liberalisation on price and production instability It has been conventional w i s d o m to say that protective policies in developed coun­ tries w o u l d tend to destabilise world cereal production and prices. G. John­ son (1981) as well as Josling (1980), argue that freer trade in cereals will have a stabilising influence on production and prices in the world cereal markets.

In fact, "fixed" factors are not fixed once and for all. They are fixed only to the extent that their marginal productivities fall between their acquisition values a n d their salvage 14 v a l u e s . As soon as the marginal productivity of any fixed factor goes b e y o n d this interval, the factor in question is n o longer fixed, a n d this allows changes in farm structures, hence in farm production, to occur. This is actually the w a y agricultural production (both in terms of its aggregate quantity a n d its composition) evolves over 15 t i m e .

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Agricultural Economics and Policy: International Challenges for the Nineties by KEES BURGER, MARTIJN DE GROOT, JAAP POST and VINUS ZACHARIASSE (Eds.)


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