1,183 research outputs found
On The Future of Co-operatives
No full textTwo extensions are formulated of the analysis of the allocation ofdecision rights in Hendrikse and Veerman (2001). First, the incompletecontracts in their article can be viewed as simple long-termcontracts, i.e. it is not allowed to make the allocation of authoritycontingent on the circumstances. Contingent long-term contracts arenow considered. Second, another aspect of decision rights is thefrequency of meetings between the owners and managers of enterprises.This aspect will be addressed from a long-term contract perspective aswell as a loss aversion perspective.contingent control rights;frequency of board meetings
Parga, and the Ionian islands; comprehending a refutation of the mis-statements of the Quarterly Review and of Lieut.- Gen. Sir Thomas Maitland, on the subject; with a report of the trial between that officer and the author.
No full textPreface: Bosset, C.P.(de)Appendix.Dedication:Content description: TitleIllustration: (Maps ,)Pagination: PP26+530PVolumes: 1Text Genre:ProseIllustration: (χάρτες ,
Samen Werken met water: Een land dat leeft, bouwt aan zijn toekomst
No full textDe Deltacommissie is door de regering gevraagd advies uit te brengen over de bescherming van Nederland tegen de gevolgen van klimaatverandering. Daarbij gaat het om de vraag hoe Nederland zo ingericht kan worden dat het ook op de zeer lange termijn klimaatbestendig is, veilig tegen overstromingen, en een aantrekkelijke plaats is en blijft om te leven; wonen, werken, recreren en investeren. Daarbij was de vraag breder te kijken dan naar (water)veiligheid alleen. In de visie is daarom ook gelet op samenhang met wonen en werken, landbouw, natuur, recreatie, landschap, infrastructuur en energie. Veiligheid en duurzaamheid zijn de twee pijlers voor de strategie van de komende eeuwen. Naast bescherming tegen het water, benadrukt en benoemt het advies de kansen voor de Nederlandse samenleving. In het advies speelt "waterveiligheid" een cruciale rol. Hierbij gaat het om de bescherming tegen overstromingen en het veiligstellen van de zoetwatervoorziening. Het zekerstellen van waterveiligheid voorkomt slachtoffers en maatschappelijke ontwrichting, het voorkomt schade aan economie, landschap, natuur, cultuur en reputatie. Het advies gaat ervan uit dat een veilig Nederland een collectief maatschappelijk belang is waarvoor de overheid verantwoordelijkheid neemt en blijft nemen. Het veiligheidsniveau moet tenminste een factor 10 hoger dan het huidige niveau. De aanbevelingen van de commissie leggen de nadruk op het kunnen meeontwikkelen met klimaatverandering en andere ecologische processen, ze zijn kosteneffectief en hebben een maatschappelijke meerwaarde. De aanbevelingen zijn flexibel en geleidelijk te realiseren en bevatten handelingsperspectief voor de korte termijn. Met de uitvoering ervan is Nederland in staat de effecten van klimaatverandering beter op te vangen en nieuwe kansen te creeren. De voorgestelde ingrepen in het advies moeten duurzaam zijn: bij de uitvoering ervan moet efficient gebruik worden gemaakt van water, energie en andere grondstoffen, zodanig dat de kwaliteit van de leefomgeving niet alleen behouden blijft maar zelfs wordt verbeterd. Voor de uitvoering van het advies voor een klimaatbestendige inrichting van Nederland heeft de Deltacommissie het Deltaprogramma opgesteld. Dit programma wordt financieel (Deltafonds) en politiek-bestuurlijk verankerd in een vernieuwde Deltawet. De urgentie (voor uitvoering) van het advies is groot. Nederland heeft een achterstand in te lopen omdat niet wordt voldaan aan de huidige geldende normen. Bovendien zijn de normen achterhaald en moeten naar boven worden bijgesteld. Daarnaast verandert het klimaat snel, stijgt de zeespiegel waarschijnlijk sneller dan aangenomen en neemt de (extreme) variatie in rivierafvoeren naar verwachting toe. Het economisch, maatschappelijk en natuurlijk belang van Nederland is groot en groeit verder; een dijkdoorbraak heeft zeer ontwrichtende gevolgen voor heel Nederland. De Deltacommissie meent dat er rekening moet worden gehouden met een zeespiegelstijging van 0,65 tot 1,30 meter in 2100 en van 2 tot 4 meter in 2200. Het effect van bodemdaling is hierin meegenomen. Deze waarden vertegenwoordigen de mogelijke bovengrenzen; het is verstandig om hiermee rekening te houden, zodat de besluiten die worden genomen en de maatregelen die worden getroffen voor lange tijd houdbaar zijn tegen de achtergrond van wat Nederland mogelijk te wachten staat. De temperatuurstijging en veranderende luchtcirculatie leiden voor de Rijn en de Maas tot afnemende zomer- en toenemende winterafvoeren. Voor de maximale afvoer van de Rijn moet rond 2100 rekening worden gehouden met ongeveer 18.000 m3/s. Voor de Maas komt dit op ongeveer 4.600 m3/s (huidige maatgevende afvoeren zijn respectievelijk: 16.000 m3/s en 3.800 m3/s). Een stijgende zeespiegel, afnemende rivierafvoeren in de zomer, langduriger droogteperioden en indringend zout water via de rivieren en het grondwater zetten de zoetwatervoorziening van het land onder druk. Dit leidt tot schadelijke gevolgen voor de drinkwater-voorziening, landbouw, scheepvaart en (koel)water gerelateerde economische sectoren. Engelse vertaling "Working together with water: A living land builds for its future" http://repository.tudelft.nl/view/ir/uuid:af79991f-31e7-47a4-a6ef-bfd54ca59c57/Civil Engineering and Geoscience
Working together with water: A living land builds for its future
No full textThe government asked the Delta Committee to come up with recommendations on how to protect the Dutch coast and the low-lying hinterland against the consequences of climate change. The issue is how the Netherlands can be made climate proof over the very long term: safe against flooding, while still remaining an attractive place to live, to reside and work, for recreation and investment. The task at hand, then, involved looking further than just flood protection. The Committee’s vision therefore embraces interactions with life and work, agriculture, nature, recreation, landscape, infrastructure and energy. The strategy for future centuries rests on two pillars: flood protection and sustainability. The report also emphasises the opportunities for Dutch society/the Netherlands as a whole. Water safety is at the centre of this report, and includes both flood protection and securing fresh water supplies. Achieving water safety prevents casualties and social disruption, while avoiding damage to our economy, landscape, nature, culture and reputation. In their report, the Delta Committee assumes that a safe Netherlands is a collective social good for which the government is and will remain responsible. The level of flood protection must be raised by at least a factor of 10 with respect to the present level. English translation of "Samen Werken met water. Een land dat leeft, bouwt aan zijn toekomst" http://repository.tudelft.nl/view/ir/uuid%3A6bb16d66-94c6-44eb-bb6b-e389283c1e82/Hydraulic EngineeringCivil Engineering and Geoscience
On The Future of Co-operatives
No full textTwo extensions are formulated of the analysis of the allocation of
decision rights in Hendrikse and Veerman (2001). First, the incomplete
contracts in their article can be viewed as simple long-term
contracts, i.e. it is not allowed to make the allocation of authority
contingent on the circumstances. Contingent long-term contracts are
now considered. Second, another aspect of decision rights is the
frequency of meetings between the owners and managers of enterprises.
This aspect will be addressed from a long-term contract perspective as
well as a loss aversion perspective
Landbouweconomie als beleidswetenschap, een pragmatische kritiek.
No full textAGRICULTURAL ECONOMICS AS POLICY SCIENCE:A PRAGMATIC CRITICISM <strong>Introduction</strong>This study aims to make a contribution to the discussion of how to increase the scientific quality of agricultural economics, by means of an epistemologically based assessment of the discipline. The analysis consists of two parts. Part I outlines the foundations of the study. The work begins with a pragmatic or instrumentalistic view of science, as elaborated by Meehan (1982). The criteria derived from this view for the assessment of policy-oriented empirical research are illustrated in two scientific areas that are closely tied to agricultural economics: economics and the agricultural sciences. Next, the history of agricultural economics is examined. Part II presents case studies of characteristic examples of modem, post-war agricultural economics research. For this purpose seven examples were chosen that have been presented as relevant for policymaking, are representative of their types, and that together give an accurate picture of major trends in agricultural economics research.This summary includes a short overview of the assessment criteria used, followed by the most important findings and general conclusion of the research.<strong>Assessment criteria</strong>Agricultural economics exists as a specialization within the field of economics due to the shared characteristics of economic issues concerning food supply and agricultural production. These characteristics stem from agriculture's specific technology and institutional framework, and they are expressed, among other ways, in price and income formation and in the use of production factors (Horring, 1960).To substantiate its existence, the discipline must contribute to the handling of relevant issues. Economic issues are by nature issues of choice. Questions such as which goods and services should be produced, how scarce resources should be utilized, who should be allowed to benefit from the fruits of production, and which policies should the society institutionalize to achieve its goals are of central importance.Extensive knowledge is necessary to handle these policy issues. Reasoned choices require empirical as well as normative knowledge. Normative knowledge is considered here to be the ability to choose between various possible courses of action, and to systematically defend that choice.One of the starting points of this research is the belief that the discipline of agricultural economics wants to and also must provide the empirical knowledge needed for policymaking. The policy concept of Meehan (1982), defined as a manual on how to achieve important goals, offers a way to further specify the knowledge that is required. The empirical requirements of policyaking are instruments with which processes can be directed. To obtain these, knowledge of causal relationships is necessary, in the sense of fixed connections between actions and effects. Such relationships are generally defined in theories. If the policy-oriented empirical sciences take their pretensions seriously, they will have to strive to develop and assess theories regarding causal relationships in important policy areas.A generally accepted research theory that leads to results which are reliable and adequate for policyaking is not available. However, it is advisable to use the research methods that give the greatest possible chance of achieving such results. As explained in Part 1, indications for the use of such methods can be based on the assumption that theories are creatively developed from generalizations of specific experiences (induction). Generalizations are made up of concepts and observations, descriptions and predictions. Predictions can be based on theories, but also on classifications and on correlations between variables. For the development of both theories and predictions, precise and adequate empirical descriptions are needed. Descriptions, in turn, are dependent on the quality of observations and the concepts used.Based on the above considerations, the assessment criteria for policy-oriented research are defined as follows:- Research goals: research must aim to develop socially relevant theories that connect actions to their effects (causal relationships).- Research methods: empiricism (descriptions and fundamental concepts, and observations) should be of central importance. Assumptions about the characteristics of people, things and their interrelationships must agree as much as possible with reality. Assertions derived from axioms cannot be challenged empirically, and are therefore not suitable for policyaking Although deduction plays an indispensable role in research, a rationalistic or postulational research strategy cannot possibly achieve the required results.- Validation of research results: potential users should be given the opportunity to evaluate the presented theories. For this purpose, it must be apparent to what extent the theory and its limiting factors agree with existing knowledge. The description of limiting factors should make it clear what the theory exactly applies to. Also the theory should be accessible and verifiable. Enough supportive evidence should be presented to prove that the theoretical structure functions as expected when actions are based on it. Finally, the theory should address relevant side-effects.These criteria apply to theoretical research. It cannot be expected of descriptive research that it reveals causal relationships, because it does not profess to. Considering their role in the development of theory, descriptions must be not only precise, but also adequate for the purposes for which they are eventually used.<strong>Findings</strong>Research goalsCritics of the economic discipline in general contend that a great deal of modem theoretical work does not relate directly to reality, that it does not attempt to develop instruments with which processes can be directed, and that it therefore cannot make a meaningful contribution to policymaking. In the agricultural sciences, however, conscious efforts have been made to describe actual processes and to develop methods for improving and increasing agricultural production. This is accomplished by influencing naturally occurring processes (for example: fertilization, cattle feeding, crop protection, improvement of machinery and buildings). 'Agricultural scientists', according to C.T. de Wit (1977, p.93), 'have long known that very little will be accomplished with a laissez faire approach'.The agricultural sciences, thus, generally meet the criteria for research goals. This is also the case for the economic specialization within the agricultural sciences. In the history of agricultural economics there are many examples of empirical research conducted for the purpose of contributing to the solution of policy issues. For example, the physiocrats of the eighteenth century, led by F. Quesnay, conducted agricultural economic research to increase the wealth of the French monarch, and thereby also improve the wealth of the entire kingdom. The British forerunner of agricultural economics, Arthur Young, developed models of the ultimate profit-making farms. This was also one of the central objectives in the work of A.D. Thaer, the founder of the agricultural sciences. Thünen discovered that the relative attractiveness of agricultural enterprises is dependent on price ratios, which are in turn partially influenced by transport costs. Another eminent German economist who worked extensively on agriculture, W.G.F. Roscher, tried to find a business structure that would best serve the interests of society. Buchenberger looked for practical ways to improve the critical condition of agriculture, and conducted research to determine, among other things, under what circumstances price controls for agricultural products could be justified.Modem agricultural economics, at least in the selected examples, strives to meet the following objectives:- Agricultural Economic Research Institute LEI-DLO reporting of business results and financial status attempts to give a representative picture of developments in Dutch agriculture, while also focusing on the changes taking place in the various groups of agricultural businesses (clustered according to type, size and specialization). The LEI figures are intended for various institutions and individuals: the European Union and national government, business organizations, entrepreneurs and their advisors, and financial institutions. The reporting does not provide these users with readymade theories or instructions. However, the descriptions do serve as a basis, in agricultural economics research for example, for predictions and theories, and consequently for the making and evaluation of policies.- The aim of Agriculture in an Unstable Economy, by Th.W. Schultz (1945), was to lay the foundations for post-war agricultural policy in the United States.. To do so, Schultz identified the circumstances and policy measures that could contribute to a successful development of agriculture in the growing, but unstable, American economy. His research is for the most part an attempt to provide empirical arguments for the concluding policy recommendations.- Farm Prices: Myth and Reality, by W.W. Cochrane (1958), attempts to make an accessible contribution to the discussion concerning agricultural price and income policies in the United States. Cochrane uses his analysis of the price formation of agricultural products to make predictions and to provide insight into the effects of various possible policy measures. The book concludes with a plea for a supply control program.- Agricultural Development: An International Perspective, by Y. Hayami and V.W. Ruttan (1985), is a comprehensive study that focuses on the technological and institutional developments in world agriculture. The goal of the study was to develop a complete agrarian growth theory that could serve as a guideline for agricultural policymaking in developing countries.- The concepts PSE (Producer Subsidy Equivalent) and CSE (Consumer Subsidy Equivalent) refer to the measurement of government support of a sector. They have recently received much attention, thanks in part to the Uruguay round of GATT negotiations, in agricultural economics research concerning the extent, structure and development of agrarian protection. PSE and CSE results are supposed to reflect the politically induced income transfers between consumers, taxpayers and agricultural producers.- Disarray in World Food Markets; A Quantative Assessment, by the Australian agricultural economists R. Tyers and K. Anderson (1992), is a recent example of a separate category of studies concerning global agricultural markets. The goal of this research was to give insight into the economic effects of protection and liberalization.- The Economics of Agricultural Policies, by B.L. Gardner (1987) is a textbook on agricultural policy analysis. According to Gardner, the task of the agricultural economist is not to take sides in agricultural politics, but to determine the effects of policy options. The aim of his book was to develop useful methods for the economic analysis and evaluation of agricultural policies.These examples of modem agricultural economics research are all concerned with socially relevant issues. Furthermore, nearly all of them meet the criteria that research should attempt to identify causal relationships. The LEI reporting does not claim to do this, but such reporting is a prerequisite for theoretical research and policymaking The PSE and CSE studies of OECD and USDA are also descriptive in nature, but they claim to measure in part the income effects of agricultural politics. The other studies deal explicitly with causal relationships. The question is whether, and under what circumstances, the relationships actually hold.Research methodsAside from being designed with good intentions, research must also be based on responsible methods if it is to make a meaningful contribution to policyaking In the agricultural sciences, observation and description of phenomena occurring under specified conditions (in the field, greenhouse, and laboratory) play a central role in research. This is much less the case in theoretical economics. As explained in Part I, Meehan and others have criticized general theoretical economics for allowing the postulational and rationalistic research strategy to dominate over the empirical. More attention is paid to axioms and mathematical manipulations than to empirical data. Such methods and assumptions form an obstacle to the emergence of theories that are suitable for policymaking.The agricultural economics discipline, as shown in this research, has a strong empirical tradition. The gathering and interpretation of factual matter was already a major part of research for the forerunners of the profession, the physiocrats and Arthur Young. Big names in the history of the profession (including Thaer, Thünen Roscher, Buchenberger, Laur, and Taylor) are known for their original answers to the questions of what data should be gathered and how this must be done. They used comparative business research, data from bookkeeping records, agricultural surveys, bookkeeping networks, historical material, and production and price statistics.The seven examples demonstrate the role empiricism plays in modem agricultural economics:- The research conducted by the Agricultural Economics Research institute LEI-DLO is a textbook example of thorough descriptive economic research. It begins by typifying and giving dimension to the population of farms (as reported in the May census); thereafter a stratified sampling is made from the population. At the sample farms numerous relevant empirical data are gathered and organized. Afterwards they are translated into verifiable information using diverse statistical techniques.- Schultz' (1945) study begins with an inventory of the concrete conditions, developments and problems that had occurred or could be expected to occur in the American agricultural economy. The descriptions and predictions are followed by theoretical analyses of the underlying factors. After evaluating the then current agricultural policies, the study concludes with advice on how particular problems could be handled by the government.- Cochrane (1958) also focuses on the practical problems of agricultural politics. However, his book is more of an expressed opinion on which agricultural market and pricing policies should be adopted, than a report of empirical, scientific research. The theoretical discussion is rather abstract. With the help of aggregated short-term demand and supply functions, Cochrane presents an interesting but controversial analysis of historical price formation of agricultural products.- Hayami and Ruttan (1985) place important emphasis on empiricism in their research. However, as the quality of the material used is often questionable, interpretations must be made with great caution. Furthermore, the methods that the authors use to deal with the material tend to be postulational and rationalistic. Reality is viewed using the neo- classical economic concepts of the developed induced innovation model, such as production function, demand, supply and equilibrium. But technical and institutional changes also have important socio-cultural causes and effects.- The PSE and CSE studies quantify market price supports, measured as the actual difference between national market prices and world market prices, and subsidies that are directly financed by the government. The concepts are based on unrealistic assumptions. Therefore, caution must be taken in interpreting the results. Neither income nor trade effects of agricultural policies are measured.- The study by Tyers and Anderson (1992) is hardly empirical at all. It does begin with factual information about developments on the world market and about agricultural polities of rich and poor countries, but the main part of the study consists of simulations derived from a mathematical model. This model is a series of equations that describe relationships between levels of production and consumption, and prices. The model is based on the period 1980-1982. It is doubtful whether the model is in fact an accurate reflection of reality. A very problematic assumption in the model is that without government interference the market mechanism in agriculture and elsewhere will lead to an optimal allocation of production factors. This assumption ignores the typical characteristics of agriculture. The idea that the market mechanism works perfectly in the rest of the economy is just as unrealistic.- Gardner (1987) refers in his textbook on the economy of agricultural policies only occasionally to concrete conditions and problems. Instead, the numerous pages are filled with simple and more complicated partial-equilibrium models for the analysis of possible government measures. Such measures cannot be analyzed, according to Gardner, until they are reduced to a variable that can be incorporated in a supply and demand model. Reality is thus compromised on two levels. This axiom-based strategy is a typical example of rationalistic, postulational research strategies. A fundamental objection to them is that it is impossible to empirically test whether their logical conclusions agree with what actually occurs. It is for this reason that such analyses cannot be used for policymaking.The examples illustrate that empiricism has not been forgotten in modem agricultural economics. However, modem neo-classical economics with its axioms, nominal concepts and deductive methods has played an increasingly important role in the discipline. Gardner's (1987) textbook is the best example of this, but Hayami and Ruttan (1985) and Tyers and Anderson (1992) confirm the trend. With regards to methods, these researchers are unlike Schultz (1945), who used a much more inductive approach.Validity of research resultsCausal assumptions are only defensible - and useful for policymaking - once they have been subjected to a proper test programme and have thereby been proven accurate. The completeness of the results is also very important: they can not be suitable for policymaking if they neglect to address important side-effects.There appear to be great differences in the above mentioned areas between modem theoretical economics and the agricultural sciences. According to critics, the results of modem theoretical economics are often insufficient: the designed instruments are unsatisfactory, models or logical structures are often not appropriate, supporting evidence for assumptions is seldom offered, and there is the problem of incompleteness. The latter is an important area of concern in the agricultural sciences as well. Nevertheless, agricultural scientists have undeniably achieved impressive research results.The history of agricultural economics demonstrates that this specialization has achieved results which are useful in policymaking. Some immediate examples are recommendations regarding the design, structure and planning of agricultural enterprises; instruments for market and price regulations and income protection, and instruments for agricultural development polities.In the case studies of modem agricultural economics the research results are validated as follows:- The LEI-DLO research on Dutch agriculture does not claim to reveal any causal relationships. A positive aspect of the reporting is that it provides supporting evidence for the representativeness and reliability of the results. An important limitationof the research is that the small (part-time) farms, are not represented in the sampling. Very large agricultural firms and stock-farms are also not included in the described population.- Schultz (1945) presents in his study empirically testable predictions and useful instruments for agricultural policymaking. The post-war years have proven that his vision of long-term development in agriculture was correct: due to a combinationof technological forces and agricultural particularities, development in agriculture coincided with great changes in the utilization of the production factors in agriculture, with severely altered relative prices, and with continuous pressure on agricultural incomes. Schultz's suggestions for pricing policy (forward prices at equilibrium levels) were not put into practice. In the post-war years, income-directed agricultural market and pricing policies retained its prominent position in American agricultural politics.- Cochrane's (1958) plea for a comprehensive supply control program in agriculture is empirically less sound. Particularly weak are the assumptions that the supply control can easily be made effective, that this automatically leads to the desired price increases, and that they in turn will result in a long-term increase in agricultural incomes. These crucial , assumptions are not supported by convincing evidence.- Hayami and Ruttan (1985) demonstrate the importance of technological and institutional innovations in agrarian development. But the validity and normative adequacy of their 'induced agricultural development model' must be brought into question. The authors admit that, in addition to changing factor scarcities, other factors (product demand, market disturbances, cultural factors, general scientific and technological innovations) can also play a role in the process of technological and institutional change. Such statements make their model irrefutable.- The PSE and CSE calculations of OECD and USDA offer a very static insight into the degree of governmental intervention in agriculture. The concepts are in fact no more than new names given to variations on the concept nominal rate of protection (NRP). The descrip
La Cassazione si pronuncia sull'esatta portata della fattispecie di "denuncia di un sinistro non accaduto" di cui all'art. 642 c.p.
No full textNella prima parte della nota, l’Autore analizza la fattispecie di «denuncia di un sinistro non accaduto» di cui all’art. 642, comma 2, c.p., introdotta nel 2002 nell’ambito della riforma delle assicurazioni R.C. Auto, per, poi, affrontare la questione su cui si è pronunciata la Corte di cassazione, relativa al significato da attribuire al concetto di “sinistro”. Infine, l’Autore offre le proprie riflessioni sui rapporti intercorrenti tra la fattispecie esaminata e le altre ipotesi delittuose previste dall’art. 642 c.p. e sulla compatibilità di tali reati con il principio di offensività.In the first part of the note, the Author analyzes the crime of “denunciation of a false accident” that was introduced into the art. 642 c.p. in 2002, and, then, the question about the meaning of “sinistro” (accident) on which the Supreme Court stated. Finally, the Author offers his own reflections on the connection between the examinated crime and other felonies provided under art. 642 c.p., and, also, on compatibility of those crimes with the principle of seriousness of the offense
Grond en grondprijs : een onderzoek naar de economische betekenis en prijsvorming van landbouwgrond
No full textThe purpose of this study is twofold. The role of land as a factor of production in the history of economic thought is the first subject of this study. In the first place it is investigated how economists over the years have explained the rent on land. Secondly an attempt is made to answer the question which factors caused economists to change their opinion about the importance of land as a factor of production. It appears that economic thought on this subject has changed a great deal from the time of the Physiocrats until the appearance of the Neo-Classical School. At first land was considered as a unique and exclusively productive factor. This view was gradually replaced by one in which land was to be regarded as a special part of capital. This change of opinion took place during the process of industrialization of the western world. However, recently there have been indications that point at a different perception of land, caused by the world-wide problems of pollution and overpopulation. They suggest a revaluation of the special role of land in the economic process. This leads to the conclusion that opinions and theories of economists are time-related.The Chapters 3 to 5 deal with the second objective of this study: to explain the big rise in prices of agricultural land in the period 1963-1982 in the Netherlands. In Chapter 3 a review of the literature about land price development is given. Most of the literature deals with the situation in the U.S.A. It appears that technological change, in combination with conditions existing on product markets, are important factors for the explanation of the rise in land prices. According to some researchers a change in expectations about future income (caused by changes in government policy) is the main cause of rising prices. A number of econometric studies in Western Germany and the United Kingdom are also reviewed in Chapter 3. It appears that although the results for the specific variables do differ, the income of farmers is an important explanatory variable.In the view of De Hoogh the rise in land prices can be explained by the continuing labour- saving, mechanical-technological change, in combination with the difficulty of diminishing the amount of labour on the farm beyond the last man on the farm: the farmer himself. This leads to a shift to the right of the demand curve for land. As far as the shifting of the supply curve is slower andlor less substantial than that of the demand curve for land, land prices will rise.In Chapter 4 the analysis is continued along these lines. The first purpose is to explain the cost-push innovation hypothesis. This hypothesis sees the direction of technological advance as determined by changes in factor prices. In view of the very strong rise in labour costs in agriculture after the Second World War and the greatly diminished number of workers, this hypothesis does certainly seem to make sense in explaining this development. Because agricultural technology has fundamentally changed in this period, the cost-push innovation hypothesis explains this development more adequately than the traditional Neo-Classical theory of factor substitution with the same technology.The second purpose of Chapter 4 is to investigate what the theory of innovation diffusion can add to the explanation of this process of mechanization of the agricultural sector after the War. The main conclusions of the reviewed literature are firstly that the speed of acceptance of a new technology differs considerably between farmers, and secondly that these differences are a reflection of the differences in entrepreneurship. It is possible that frictions appear in the land market because the speed with which the farmers want to enlarge their farms is different from that with which the farmers, who have to leave this sector in the long run, want to sell. This may cause a rise of prices in the short run.To get a clear view of what exactly causes the shift in the demand curve for land as a result of labour-saving technological development the change in the position and the form of the isoquants and cost curves of farmers is analysed. The influence of the other form of technological advance - the biological or landsaving technological development - on the cost curves is also analysed.Furthermore the effects of technological development on the dynamics of demand and supply on the land market are analysed, the existence of differences in cost curves between farms being essential. By means of a static analysis it is investigated how large the changes in land prices will have to be in order to restore equilibrium, when specific assumptions are made about firstly, the distribution of the positive effects of technological advance on costs between farms, and secondly, the degree in which costs differ between farms. The conclusion of this analysis is that the larger the positive effects of technological advance on production costs and the larger the differences of costs between farms, the more the least efficient farms can take advantage of the reduction in costs. Also, the greater the (absolute) elasticity of demand on the product market, the bigger the rise in land prices will be.Chapter 5 contains an econometric analysis of the land market in the Netherlands during the period 1963-1981. It consists of three main parts. Part one deals with the structural changes in Dutch agriculture after the Second World War. The conclusion is that there has been an enormous decline in the number of workers in agriculture and a considerable rise in the degree of mechanization that has taken place simultaneously.The second part discusses the specification of an econometric model. There are three groups of variables. First of all, there are structural ones which follow from the analyses of Chapter 4. To capture the specific influence of mechanicaltechnological change investment in machinery is taken as a proxy variable. Furthermore there are conjunctural variables. According to the reviewed literature in Chapter 3, firstly the income of the farmer (this variable has two functions: it is a proxy for the income expectations and it is important for the financial possibilities in order to buy land), and secondly the interest rate. The third variable is the change in land prices itself in order to catch the influence of speculation and to account for the influence of the mortgage system. (The commercial banks take the recent price level into account when they calculate the maximum mortgage a farmer can get on land he wants to buy.) Finally there are incidental variables. During the late seventies three policy instruments were in operation which affected agriculture. Two of those were aimed at stimulating investment in agriculture. (One of them, concerning interest subsidies, was especially made for the agricultural sector.) The other one was the introduction of the disability to work scheme.The third part presents the econometric model and the results of the econometric analysis. A two-equation model is used in which the land prices are explained by investment, changes in the price level of land and by dummy variables to account for the incidental influences. Investment is explained by the level of the wages in agriculture, the income of the farmers, the interest rate and again by a number of dummy variables.The results of the econometric analysis support the hypothesis of Chapter 4 that mechanical- technological development is an important variable in explaining the rise in land prices. Investment, as well as the change in the dependent variable itself, are clearly significant. The dummy for the existence of the disability to work scheme also improves the explanatory power of the equation. Investment is adequately explained by the level of wages, the interest rate and the dummy variables for investment stimulating instruments. The influence of the conjunctural variables (especially the change in land prices) in explaining the land price development, demonstrates the fact that the land market has suffered from a great loss of stability during the boom in prices at the end of the seventies. Although there certainly is a structural cause for the rising prices of land, the government programme of stimulating investment is also responsible for the rise in land prices during the seventies. It may be expected that in the next few years land prices will not rise as high as they did before the downturn took place.</p
Feeding the planet and the role of the common agricultural policy (CAP)
No full textFinancially the repercussions of the economic and financial crisis will strongly limit the increase of the budget. Of the budget of the EU surely the euro crisis will enhance the pressure even more. On top of that new policy priorities like energy, climate and infrastructure will demand substantial means. So the budget for the CAP will become under serious pressure. It is not to bold to expect a 10 to 20% cut will be the target for the next budget period after 2013
- …
