Contracts with Private Cost per Unit-of-Effort

Crowdfunding provides innovation in enabling entrepreneurs to contract with consumers before investment. Under aggregate demand uncertainty, this improves screening for valuable projects. Entrepreneurial moral hazard and private cost information threatens this benefit. Crowdfunding's after-markets enable consumers to actively implement deferred payments and thereby manage moral hazard. Popular crowdfunding platforms offer schemes that allow consumers to do so through conditional pledging behavior. Efficiency is sustainable only if expected returns exceed an agency cost associated with the entrepreneurial incentive problems. By reducing demand uncertainty, crowdfunding promotes welfare and complements traditional entrepreneurial financing, which focuses on controlling moral hazard. (JEL D21, D81, D82, D86, G32, L26)

Download Full-text

The Various Non-Monopoly Step-Wise Private-Benefit, Private-Cost, and Profit Distortions

Welfare Economics and Second-Best Theory ◽

10.1007/978-3-030-43360-4_8 ◽

2020 ◽

pp. 227-257

Author(s):

Richard S. Markovits

Keyword(s):

Private Benefit ◽

Private Cost

Download Full-text

Social Cost of Biomass Energy from Switchgrass in Western Massachusetts

Agricultural and Resource Economics Review ◽

10.1017/s1068280500007681 ◽

2013 ◽

Vol 42 (1) ◽

pp. 176-195 ◽

Cited By ~ 3

Author(s):

David Timmons

Keyword(s):

Ecosystem Services ◽

Forest Ecosystem ◽

Production Cost ◽

Social Cost ◽

Benefit Transfer ◽

Biomass Energy ◽

Total Biomass ◽

Forest Ecosystem Services ◽

Private Cost ◽

The Social

Producing biomass energy requires much land, and effects of biomass production on ecosystem services could greatly affect total biomass energy cost. This study estimates switchgrass production cost in western Massachusetts at three levels: private production cost, private cost plus social cost of nitrogen fertilizer externalities, and those costs plus the social opportunity cost of foregone forest ecosystem services. Values for nitrogen externalities and forest ecosystem services estimated with benefit transfer suggest that social cost is much greater than private switchgrass production cost. The benefit-transfer estimates are only first approximations, but conclusions are robust to a large range of values.

Download Full-text

The Private Cost of Long-Term Care in Canada: Where You Live Matters

Canadian Journal on Aging / La Revue canadienne du vieillissement ◽

10.1017/s0714980810000346 ◽

2010 ◽

Vol 29 (3) ◽

pp. 307-316 ◽

Cited By ~ 7

Author(s):

Natasha Fernandes ◽

Byron G. Spencer

Keyword(s):

Long Term Care ◽

Term Care ◽

Accès Aux Soins ◽

Soins De Santé ◽

Private Cost ◽

Nous Trouvons ◽

Longue Duree ◽

Longue Durée

RÉSUMÉLes Canadiens s’attendent le même accès aux soins de santé, qu’ils soient riches ou pauvres, et n’importe où ils vivent, souvent sans frais directs au point de service. Toutefois, nous trouvons que le coût privé de soins de longue durée diffère grandement partout au pays, et dans les provinces, nous trouvons des variations importantes, selon le niveau de revenu, l’état matrimonial et, au Québec seulement, selon les actifs détenus. Une personne non-mariée avec un revenu moyen devrait payer plus de deux fois autant dans les provinces de l’Atlantique qu’au Québec, tandis qu’un couple, dont une personne a besoin de soins, paierait quatre fois plus en Terre-Neuve comme en Alberta.

Download Full-text

Domestic Resources Cost Analysis of Small-Scale Beef Cattle Farming at Upstream Area of Benain-Noelmina Watershed, West Timor, East Nusa Tenggara

Open Agriculture ◽

10.1515/opag-2017-0045 ◽

2017 ◽

Vol 2 (1) ◽

Author(s):

Agus Arnold Nalle ◽

B. Hartono ◽

B. Ali Nugroho ◽

H. D. Utami

Keyword(s):

Beef Cattle ◽

Survey Method ◽

Small Scale ◽

Cost Ratio ◽

Private Cost ◽

Grazing System ◽

Economic Characteristic ◽

Cattle Farming ◽

Age Range ◽

West Timor

AbstractThe study aims to evaluate the Domestic Resources Cost (DRC) of beef cattle raised either on grazing, or a tethering system of small-scale beef cattle farming. The study was done using a survey method. A total of 120 respondents were selected purposively to consist of 60 farmers applying the grazing system and another 60 farmers applying the tethering system. The parameters measured were socio-economic characteristic, Domestic Resources Cost Ratio (DRCR) and Private Cost Ratio (PCR). Data were analyzed by applying a method of Policy Analysis Matrix (PAM). The result of the study indicated that 87% of those farmers involved in the grazing system and 85% of those involved in tethered beef cattle production, were within the productive age range. In the grazing system, the cattle farmers upstream of Benain-Noelmina watershed area gain the private and social profit levels which is IDR 406,284,-/AU/year and IDR 688,388,-/AU/year, respectively. Further, in the tethering system, the average of private and social profit gain is IDR 855,222,-/AU/year and IDR 1,385,712,-/AU/year, respectively. The small-scale beef cattle farming upstream of Benain-Noelmina watershed has competitive and comparative advantages, indicated by the value of PCR and DRCR which are less than 1. The PCR value was 0.41 in the grazing system and 0.71 on the tethering system; hence, the DRCR of the grazing system was 0.29 and 0.60 of the tethering system.

Download Full-text