Torbjörn Jansson and Thomas Heckelei
Estimating parameters of constrained optimization models in a consistent way requires a different set of methods than what is available in a typical econometric toolkit. We…
Abstract
Estimating parameters of constrained optimization models in a consistent way requires a different set of methods than what is available in a typical econometric toolkit. We identify three complications likely to arise in this context, and suggest solutions to those complications: (i) the bi-level programming character, (ii) ill-posedness, and (iii) derivation of estimator properties. The solutions suggested involve a combination of numerical techniques and utilization of out-of-sample information through Bayesian techniques. The proposed framework is also suitable for typical empirical problems arising in trade analysis such as the estimation of trade equilibrium models and data balancing exercises.
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Franziska Götze, Stefan Mann, Ali Ferjani, Andreas Kohler and Thomas Heckelei
– The purpose of this paper is to identify those product characteristics that are of importance to consumers of organic food in Switzerland.
Abstract
Purpose
The purpose of this paper is to identify those product characteristics that are of importance to consumers of organic food in Switzerland.
Design/methodology/approach
In order to identify important organic product characteristics, this study applies a Generalized Linear Model using a six-year sample of Swiss household data distinguishing between organic and conventional products at the product level.
Findings
The analysis reveals three product-related dimensions of importance. First, Swiss consumers prefer unprocessed organic products over highly processed ones suggesting that communicating potential benefits of organic food is more promising for unprocessed products. Second, organic consumers are reluctant to buy products with high price premiums. Third, Swiss consumers prefer domestically produced organic products over imported ones.
Practical implications
The results imply that supporting organic agriculture in Switzerland is still promising from a policy and a marketing perspective as long as the organic price premium is not too high.
Originality/value
This paper presents results regarding the determinants of the organic market share in Switzerland. They give a first understanding of which product characteristics determine organic market shares. From a policy as well as from a marketing perspective a further investigation at the household level is promising in order to understand and respond to the needs and expectations of Swiss consumers.
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Computable general equilibrium, or CGE, is a well-established numerical simulation technique for evaluating the economy-wide effects of changes in an economic system. It has…
Abstract
Computable general equilibrium, or CGE, is a well-established numerical simulation technique for evaluating the economy-wide effects of changes in an economic system. It has become very widely used throughout the economics discipline, but is perhaps employed most frequently in the analysis of changes in international trade policy, where changes in tariffs and other taxes are often large and almost always involve multiple sectors and/or regions simultaneously. CGE methods, while certainly not without their limitations, have proved very effective at tracking the myriad of feedback and flow-through effects associated with new regional trading agreements and multilateral trade reforms, and have provided a consistent mechanism of analyzing the effects of changes in trade policy and related areas on a diverse range of economic outcomes.
This chapter aims to estimate the impact of the use of an innovative cultivation method on the social, economic and environmental aspects in the French region Aix-en-Provence, by…
Abstract
This chapter aims to estimate the impact of the use of an innovative cultivation method on the social, economic and environmental aspects in the French region Aix-en-Provence, by using the survey data for 200 heterogeneous vegetable producers (organic and conventional). It distinguishes three types of producers in the French region Aix-en-Provence. First, conventional producers (n = 100) who used a high level of mechanization, better access to water, high yield, high labor costs. Second, certified organic producers (n = 70) who used organic technologies such as biotechnology and rotation, low yield, high organic product price compared to conventional products, a family workforce and high transport. Third, noncertified organic producers (n = 30) have used the same technologies as certified organic producers, while they sell their products at the same price as conventional products. Labor is the member of the family. These noncertified farms are marked by high operating and transport costs and low yield compared to conventional producers or certified organic producers. The results show that this cultivation method has a positive effect on the environmental aspect, however a negative one on the social and economic aspect.
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Xiaojie Xu and Yun Zhang
Forecasts of commodity prices are vital issues to market participants and policy makers. Those of corn are of no exception, considering its strategic importance. In the present…
Abstract
Purpose
Forecasts of commodity prices are vital issues to market participants and policy makers. Those of corn are of no exception, considering its strategic importance. In the present study, the authors assess the forecast problem for the weekly wholesale price index of yellow corn in China during January 1, 2010–January 10, 2020 period.
Design/methodology/approach
The authors employ the nonlinear auto-regressive neural network as the forecast tool and evaluate forecast performance of different model settings over algorithms, delays, hidden neurons and data splitting ratios in arriving at the final model.
Findings
The final model is relatively simple and leads to accurate and stable results. Particularly, it generates relative root mean square errors of 1.05%, 1.08% and 1.03% for training, validation and testing, respectively.
Originality/value
Through the analysis, the study shows usefulness of the neural network technique for commodity price forecasts. The results might serve as technical forecasts on a standalone basis or be combined with other fundamental forecasts for perspectives of price trends and corresponding policy analysis.
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Jason Loughrey and Herath Vidyaratne
The purpose of this paper is to analyse the association between farm/farmer characteristics and unsubsidized farm insurance premium expenditure in Ireland. The distribution of…
Abstract
Purpose
The purpose of this paper is to analyse the association between farm/farmer characteristics and unsubsidized farm insurance premium expenditure in Ireland. The distribution of farm insurance expenditures is wide, and it is important to understand the extent to which individual factors influence demand for different levels of insurance premium.
Design/methodology/approach
The quantile regression approach and farm accountancy data from the Teagasc National Farm Survey are used to model the association between farm/farmer characteristics and farm insurance demand in Ireland.
Findings
Asset values (livestock, buildings and machinery) are positively associated with total insurance expenditure. Both forestry area and crop area are significantly associated with farm insurance expenditure with a stronger influence on the middle and upper part of the distribution. The interaction between farm income and farmer age is positively associated with insurance expenditure pointing to the importance of farm income protection.
Research limitations/implications
The research is mainly concerned with insuring against substantive risks, which are capable of threatening the asset base and continuation of the farm business. Future research can integrate questions in relation to farm safety and farmer health with research on the economic survival of the farm business.
Practical implications
Farmers in Ireland adopt unsubsidized farm insurance as a risk management tool. This situation is relevant to other EU member states including Belgium, Denmark, Germany and Sweden. The findings can be used to inform stakeholders and policymakers about the relative impact of different factors on insurance expenditure.
Originality/value
Previous research has typically focused on the linear relationship between farm/farmer characteristics and insurance demand without accounting for variability across the size distribution. This research is based on the quantile regression approach where the association between farm/farmer characteristics and farm insurance expenditure can be assessed at different points of the distribution.
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Alexandre Borges Santos and Mário Otávio Batalha
This study seeks to empirically and theoretically show how and why food chain specific advantages along with country-specific and firm-specific advantages impact the development…
Abstract
Purpose
This study seeks to empirically and theoretically show how and why food chain specific advantages along with country-specific and firm-specific advantages impact the development of competences and shape distinct strategies for international growth.
Design/methodology/approach
Case studies were conducted with three Brazilian meatpacking firms with solid global operations. Top managers in charge of international operations were interviewed and documents were collected. Data were coded and submitted to triangulation. Content analysis was used as data analysis technique.
Findings
Results suggest that a meso-level of analysis is important to understand the development of competences and strategies for internationalization of meatpacking firms. Additionally, it was found that the internationalization process of meatpacking firms are supported by four supportive competences, namely: technical, production, sales and logistics competences. Findings also reveal that these companies tend to pursue either a raw material seeker or local taste supplier strategy.
Originality/value
International business scholars have struggled to incorporate meso-level characteristics into mainstream literature. This paper tries to fill in this gap by incorporating distinctive features from the food supply chain in the analysis. Two novel international strategy typologies were introduced by considering firm-, food chain- and country-specific advantages. It also proposes sound theoretical and managerial evidence to support public and private decision-making.
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Franziska Götze and Thomas A. Brunner
The purpose of this paper is to gain a deeper understanding of the market for sustainably produced domestic products by categorising consumers into homogeneous groups. Thereby…
Abstract
Purpose
The purpose of this paper is to gain a deeper understanding of the market for sustainably produced domestic products by categorising consumers into homogeneous groups. Thereby, the role of sustainability in the purchase of domestic products should also be identified.
Design/methodology/approach
Paper-and-pencil questionnaires were sent to a random sample of Swiss households and completed by 1,174 individuals from the German- and French-speaking parts of Switzerland. A principal component analysis resulted in 12 components, which were then used in a hierarchical cluster analysis.
Findings
For all the identified consumer segments except one, sustainability or product origin (or both) is an important decision criterion that influences their food shopping behaviour. The results show that patriotism is not necessarily the only reason for buying domestically produced food and agricultural products. The decision to buy domestic food products is also associated with ecological, economic and social sustainability as well as other factors, such as healthfulness, regionality and seasonality.
Originality/value
The study shows how the sustainability and consumption of domestic food products are linked and reveals important drivers of consumption.