scholarly journals Do Production Contracts Raise Farm Productivity? An Instrumental Variables Approach

2008 ◽  
Vol 37 (2) ◽  
pp. 176-187 ◽  
Author(s):  
Nigel Key ◽  
William D. McBride
Keyword(s):  
Instrumental Variable ◽  
The United States ◽  
Farm Productivity ◽  
Hog Farms ◽  
Production Contracts ◽  
Instrumental Variable Method ◽  
Increase In Productivity ◽  
The Impact ◽  
Instrumental Variables Approach ◽  
Unobservable Factors

Estimating how the use of production contracts affects farm productivity is difficult when unobservable factors are correlated with both the decision to contract and productivity. To account for potential selection bias, this study uses the local availability of production contracts as an instrument for whether a farm uses a contract in order to estimate the impact of contract use on total factor productivity. Results indicate that use of a production contract is associated with a large increase in productivity for feeder-to-finish hog farms in the United States. The instrumental variable method makes it credible to assert that the observed association is a causal relationship rather than simply a correlation.

Does the Contract Type Matter? Impact of Marketing and Production Contracts on Cashew Farmers’ Farm Performance in Ghana

2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Caroline Dubbert ◽  
Awudu Abdulai
Keyword(s):  
Driving Forces ◽  
Smallholder Farmers ◽  
Spot Markets ◽  
Switching Regression ◽  
Farm Productivity ◽  
Production Contracts ◽  
Marketing Contracts ◽  
On Farm ◽  
The Impact ◽  
Substantial Heterogeneity

Abstract Many studies show that participation in contract farming has positive impacts on farm productivity and incomes. Most of the literature, however, does not take into account that contracts vary in their specifications, making empirical evidence scarce on the diverse impacts of different types of contracts. In this study, we investigate the driving forces of participation in marketing and production contracts, relative to spot markets. We also study the extent to which different contract types add additional benefits to smallholder farmers, using recent survey data of 389 cashew farmers in Ghana. To account for selection bias arising from observed and unobserved factors, we apply a multinomial endogenous switching regression method and implement a counterfactual analysis. The empirical results demonstrate that farmers who participate in production contracts obtain significantly higher cashew yields, cashew net revenues, and are more food secure compared to spot market farmers. We also find substantial heterogeneity in the impact of marketing and production contracts across scale of operation. Small sized farms that participate in production contracts tend to benefit the most. Marketing contracts, however, do not appear to benefit cashew farmers.

scholarly journals Preferential Income Tax Rate and Research and Development Investment: Evidence from Small and Medium-Sized Listed Firms in China

2019 ◽  
Vol 9 (1) ◽  
pp. 1
Author(s):  
Xiaobao Song ◽  
Chun Guo ◽  
Wunhong Su
Keyword(s):  
Propensity Score ◽  
Research And Development ◽  
Instrumental Variable ◽  
Income Tax ◽  
Positive Relation ◽  
Tax Rate ◽  
Listed Firms ◽  
External Impact ◽  
Instrumental Variable Method ◽  
The Impact

This study investigates the impact of a preferential income tax rate on research and development investment for small and medium-sized Chinese listed firms from 2013 to 2017. The results reveal a significantly positive relation between the preferential income tax rate and research and development investment. Such a positive relation appears to be more significant for non-state-owned firms and for firms located in provinces with higher research and development intensity. The instrumental variable method, the two-stage Heckman method and propensity score matching are employed in this study to support the finding that the preferential income tax rate has a positive external impact on research and development investment. The empirical results are robust with respect to endogeneity.

scholarly journals Do Agricultural Package Programs Improve the Welfare of Rural People? Evidence from Smallholder Farmers in Ethiopia

Agriculture ◽  
2020 ◽  
Vol 10 (5) ◽  
pp. 190 ◽  
Author(s):  
Araya Teka ◽  
Sung-Kyu Lee
Keyword(s):  
Instrumental Variable ◽  
Smallholder Farmers ◽  
Consumption Expenditure ◽  
Rural People ◽  
Eastern Zone ◽  
Resource Endowment ◽  
Instrumental Variable Method ◽  
Per Capita ◽  
The Government ◽  
The Impact

The purpose of this paper is to assess the welfare status and analyze the impact of participation in farm package programs on the welfare of smallholder farmers. We used three round panel data of 789 households from the Eastern zone of Tigray, and the fixed effect instrumental variable method was employed in the estimation. The study found that consumption expenditure, income, and asset per capita of the households increased across the survey years. The participation of households in the integrated package programs has a positive and statistically significant impact on the consumption expenditure and calorie per adult equivalent, but not the income and asset per capita of the households. Also, affects the consumption expenditure per adult equivalent of the married households. To enhance the welfare of the beneficiaries, the provision of the package programs should align with the local resource endowment, focus on youth, widowed and divorced households and the government should prioritize and limit the number of packages that households can participate in.

Demonstrating Nutrient Cost Gradients: A Brooklyn Case Study

2014 ◽  
Vol 84 (5-6) ◽  
pp. 244-251 ◽  
Author(s):  
Robert J. Karp ◽  
Gary Wong ◽  
Marguerite Orsi
Keyword(s):  
Low Income ◽  
Energy Content ◽  
Food Selection ◽  
The United States ◽  
United States Department ◽  
Micronutrient Deficiencies ◽  
Caloric Density ◽  
Low Income Families ◽  
The Cost ◽  
The Impact

Abstract. Introduction: Foods dense in micronutrients are generally more expensive than those with higher energy content. These cost-differentials may put low-income families at risk of diminished micronutrient intake. Objectives: We sought to determine differences in the cost for iron, folate, and choline in foods available for purchase in a low-income community when assessed for energy content and serving size. Methods: Sixty-nine foods listed in the menu plans provided by the United States Department of Agriculture (USDA) for low-income families were considered, in 10 domains. The cost and micronutrient content for-energy and per-serving of these foods were determined for the three micronutrients. Exact Kruskal-Wallis tests were used for comparisons of energy costs; Spearman rho tests for comparisons of micronutrient content. Ninety families were interviewed in a pediatric clinic to assess the impact of food cost on food selection. Results: Significant differences between domains were shown for energy density with both cost-for-energy (p < 0.001) and cost-per-serving (p < 0.05) comparisons. All three micronutrient contents were significantly correlated with cost-for-energy (p < 0.01). Both iron and choline contents were significantly correlated with cost-per-serving (p < 0.05). Of the 90 families, 38 (42 %) worried about food costs; 40 (44 %) had chosen foods of high caloric density in response to that fear, and 29 of 40 families experiencing both worry and making such food selection. Conclusion: Adjustments to USDA meal plans using cost-for-energy analysis showed differentials for both energy and micronutrients. These differentials were reduced using cost-per-serving analysis, but were not eliminated. A substantial proportion of low-income families are vulnerable to micronutrient deficiencies.

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