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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, prompted through GATT negotiations, the hole in the direction of japanese Europe and environmental issues, from a construction orientated coverage in the direction of rural coverage, aiming at retaining susceptible areas, preserving a rural inhabitants, curbing construction within the West and fostering it within the East, and Read more...

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Extra info for Agricultural Economics and Policy: International Challenges for the Nineties

Example text

The p u r p o s e of this contribution is to analyse the impact of agricultural trade liber­ alisation on instability in prices a n d production of cereal commodities, an issue that is of great concern to producers, consumers and developing countries alike, b u t which seems not to have been at the center of discussions in the current Round. The major thrust in current discussions has been on reform and liberalisation in policies that in the aggregate have the effect of raising average producer returns, and consequently production, above w h a t a free market w o u l d yield.

The u p s h o t is that the expected and actual price will obey the following equations: k 14 Pt+k/t = P P t < > Pt=PPt-l+ ( > 1 5 a + c + ζ (1-γ) + α (1-p) w h e r e ρ is the smallest root (that turns out to be between 0 a n d 1) of the following equation: 2 - c c p + ( a + b + C (1-γ) + 2 α ) ρ - ( α + ζ (1-γ)) = 0 (16) From (15) and (16) the asymptotic price variance can be s h o w n to equal the follow­ ing 2 2 σ 2 σ . ( l - p ) ( a + c + C(l- Y) + a ( l - p ) r ( 1 7) The parameter ρ defined above, can be interpreted as a "decay" factor, in the sense that a shock in one year, leading to a non-zero price deviation from trend, will have effects that last beyond that year, b u t with diminishing force.

Or policy advisers? or policy makers? The emergence of the "new political economy" has renewed the interpretation of this relationship between agricultural economics and agricultural policies. The intent of this paper is to take stock of the reflection on this topic in light of these n e w develop­ ments in the field of political economy, and to explore their implications for our pro­ fession. This will entail a reflection on the relationship between science (agricultural economics being a scientific s u b discipline) and art (policy m a k i n g being essentially an art).

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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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