The Distribution of Subsidized Agricultural Credit in Brazil: Do Interest Groups Matter?

This article examines the unequal distribution of credit and credit subsidies in the Brazilian agricultural sector from 1969 to 1990. Total credit subsidies exceeded US$ 40 billion in this period. The distribution across crops is studied econometrically. After controlling for area, the crops that benefited most had superior access to credit institutions, were tradeable, had high prices, and were not perennials. Proxies for collective action by crop were an unimportant determinant of credit policy, while a bias in favour of large producers was evident. Alternative explanations for this bias are discussed, including collective action by farm size and transaction costs in lending.     

Azerbaijan: Territorial Issues and Internal Challenges in Mid-2001

This paper examines the relationship between size of land holding and family income, based on a recent survey of rural households in Poland. In general, the results indicate a positive relationship between income and size of land holdings, suggesting that successful Polish farmers are expanding their farm holdings through land market transactions. Constraints to efficient functioning of these land markets in Poland are investigated as well, which include high government-determined land transaction costs, complex registration procedures, poor access to mortgage facilities, and a bias against larger farms built into the unemployment benefits system. Journal of Economic Literature, Classification Numbers: O18, Q15, Q24. 5 figures, 12 tables, 10 references.     

Supporting trust: credit assessment and debt recovery through Trade Protection Societies in Britain and Ireland, 1776–1992

From an initial foundation in London in 1776, Trade Protection Societies grew in numbers to reach a peak of about 120 in 1910. They provided inter-business and some consumer credit assessment, debt management and recovery. From the 1850s they coordinated activities through a national association that covered Britain and Ireland. The societies were processing millions of credit assessments for thousands of members in the 1960s, reaching over 100,000 assessments per day in the 1980s. They provided a voluntary institutional base drawing on networks of mutuality, supplying information between members and societies that was judged privileged by the Courts. This offered transaction costs advantages for the high frequency, short duration activity provided, and hedged against the risks of complex Court actions. They became a large-scale mechanism to encourage honouring of commitments, thus underpinning the trust necessary across an increasingly geographically integrated economy. Their evolution demonstrates the importance of city size and regional centres, with diffusion down the city rank-size distribution. However, some smaller centres, mainly in resorts, also developed TPSs. The spatial process linked individual traders and the smallest places into a national system of credit management. By the 1920s smaller TPSs became difficult to sustain and were taken over or became branches of the larger societies; but overall membership continued to increase. True consolidation occurred after 1971 when demand exploded after the removal of credit controls, with unit costs pressed down, leading to de-mutualisation.     

略论20世纪50年代中国的商业信用

建国初期,我国商品交易中广泛存在着商业信用,商业信用制度是信用制度的重要组成部分。在建立苏联式的计划经济体制过程中,国家为了对资金流通与商品交易实行计划管理, 从1954年起强制取消了国营经济的商业信用,试图以国家银行信用制度取代商业信用制度。取消商业信用制度后,我国的信用制度出现缺失,虽然大量“非法”商业信用形式依然暗中存在,但信用制度的功能受到抑制,严重阻滞了社会资金的正常运行。     

1957-1966年党的个体私营经济政策述评

个体私营经济问题,是我国社会主义建设过程中必须认真对待和正确处理的一个重要问题.本文对"三大改造"以后,"文化大革命"之前,即1957-1966年党关于个体私营经济的认识及政策演变作了认真的分析,对农村自留地、家庭副业、个体手工业、小商小贩问题作了重点的论述,对这个时期党在个体私营经济问题上的失误与教训作了一定的总结.这项研究对进一步深化关于个体私营经济的认识,更加坚定不移贯彻执行当前发展个体私营经济的政策,具有深刻的历史启示和重要的现实意义.     

Carbon Sequestration in Community Forests: Trade‐offs,Multiple Outcomes and Institutional Diversity in the Bolivian Amazon

Carbon sequestration in community forests presents a major challenge for the Reducing Emissions from Deforestation and Forest Degradation (REDD+) programme. This article uses a comparative analysis of the agricultural and forestry practices of indigenous peoples and settlers in the Bolivian Amazon to show how community‐level institutions regulate the trade‐offs between community livelihoods, forest species diversity, and carbon sequestration. The authors argue that REDD+ implementation in such areas runs the risk of: 1) reinforcing economic inequalities based on previous and potential land use impacts on ecosystems (baseline), depending on the socio‐cultural groups targeted; 2) increasing pressure on land used for food production, possibly reducing food security and redirecting labour towards scarce off‐farm income opportunities; 3) increasing dependence on external funding and carbon market fluctuations instead of local production strategies; and 4) further incentivising the privatization and commodification of land to avoid transaction costs associated with collective property rights. The article also advises against taking a strictly economic, market‐based approach to carbon sequestration, arguing that such an approach could endanger fragile socio‐ecological systems. REDD+ schemes should directly support existing efforts towards forest sustainability rather than simply compensating local land users for avoiding deforestation and forest degradation.     

Cash Transfers and the Well‐being of Older People in Brazil

This article provides a comprehensive assessment of the effects of social protection interventions on material and subjective elements of well‐being. Drawing on a longitudinal survey located in two relatively deprived parts of Brazil, it assesses the effects of pensions and other cash transfers on the well‐being of older people and their households. This analysis is located within a dynamic economic and public policy context. The article finds that pension benefits significantly increase per capita income and that this is strongly associated with overall levels of satisfaction with household well‐being. Levels of reported subjective well‐being do not fall as respondents age, and the survey finds high levels of optimism about future well‐being. The positive effects of pension benefits were supported by upgraded health services and by more specific policies such as access to credit on favourable terms. Overall, the authors conclude that a combination of economic growth and effective public policies significantly boosted the well‐being of most households in their survey, and that Brazil can be taken as a model of good practice for other middle‐income countries.     

Why Russian Peasants Remain in Collective Farms: A Household Perspective on Agricultural Restructuring

This paper seeks to understand what motivates collective farm employees-share-holders to remain in collective structures rather than exercise their legally sanctioned right to leave with land and property shares. On the basis of a 1999 survey of 181 collective farm households and analysis of regional agricultural policies in Leningrad and Saratov oblasts, the paper examines divergent overt and covert benefits that employees derive from association with market-oriented versus less reformed collective agricultural producers. The paper relates the structure of employee incentives to regional-level agricultural policies and to the divergent effects these policies have on the depth and pattern of structural transformations of agricultural production. Journal of Economic Literature, Classification Numbers: O18, Q10, Q15. 5 figures, 15 tables, 38 references.     

The dynamics of family farming in North Huron County, Ontario. Part I. Development trajectories

Recent structural shifts towards enlargement and intensification in the farm sector in Canada have drawn attention to the changing relationship between farming and the rural community. While some developments in farming are implicated in increasing conflict with communities, others may be fostering the need for stronger linkages. A more nuanced understanding of change in both the family farm and community sectors would contribute to a better appreciation of these evolving linkages. This paper explores contemporary change on the farm side, with attention to the nature and causes of diversity in a local family farming system. Data from a survey of family farms in northern Huron County, Ontario, were used to document variations in farm development trajectories and to explore the interactive importance of factors relating to the farm economy, the farm business and the household. The research invokes a pathways conceptualisation and the theory of business and family life cycles in attempting to characterise and attribute change. Revealed trajectories range from aggressive engagement in expansion, diligent efforts to 'hang on' and forced or voluntary contraction. In addition, the paper presents two brief farm history case studies as a means of demonstrating the interaction of farm business and household factors through the lived experience of farm families. Revealed diversity in family farm business trajectories suggests an increasingly differentiated set of linkages and dependencies between farm and community.     

陕西省农村土地流转迟缓的供求影响因素与机制探析

农村土地流转长期受到决策者的鼓励,但我国农村土地使用权流转率一直偏低,西部地区尤其如此。本文试图以陕西省为例,通过问卷调查和访谈,分析农地社会保障功能等因素影响农地使用权流转率的作用机制;并从供给和需求两个方面,分析了经济落后地区农村土地使用权流转率偏低的原因。研究结果表明,农地流转受到现行的以提供社会保障为基本目的的农地制度的约束,任何旨在提高农地流转率的改革措施,都必须考虑现行农地制度的社会保障功能和地区差异,实行因地制宜的农地流转制度。     

Reorganization of Agricultural Enterprises in Ukraine in 2000: A Research Note

This paper examines organizational features and problems experienced by the agricultural enterprises created (reorganized) during the farm reform mandated by Ukrainian Presidential Decree 1529 of December 3, 1999, as well as trends in land and non-land asset leasing. The research is based on analysis of summary statistics for the reform collected in early May 2000, as well as an exploratory survey of 16 farm enterprises in Kyiv, Sumy, and Chemihiv oblasts. Some tentative conclusions are drawn regarding the extent to which farm reorganization has fostered fundamental vis-á-vis largely formal changes, as well as its impact on the power of farm directors. Journal of Economic Literature, Classification Numbers: D20, Q15, R14.1 table, 3 figures, 7 references.     

Urban size and KIBS vertical disintegration: the case of Milan

The literature shows that market size favours firms’ vertical disintegration because it reduces transaction and knowledge coordination costs. The existing evidence is based primarily on cross-sectional data and on the manufacturing sector, with little or no attention is given to longitudinal data and services. This paper estimates the effect of urban size on the purchase of service inputs by knowledge-intensive business service firms located in the metropolitan region of Milan. Relying on a rich panel dataset, and adopting different econometric techniques to overcome endogeneity, we find a positive and statistically significant effect of increased urban population on the degree of KIBS vertical disintegration only when urban size is measured at the province level. We also find that this effect holds particularly in the case of traditional professional- rather than technology-related activities.     

New Evidence of the Effect of Transaction Costs on Residential Mobility*

Abstract. Transaction costs have attracted considerable attention in the theoretical literature on residential mobility. Transaction costs are thought to cause suboptimal consumption of housing but may also negatively affect labor market outcomes. In the current paper, we demonstrate empirically for the Netherlands that transaction costs have a strong negative effect on the owners' probability of moving. Under a range of different specifications, it appears that a 1 percent‐point increase in the value of transaction costs—as a percentage of the value of the residence—decreases residential mobility rates by (at least) 8 percent. The estimates imply that ownership to ownership mobility rates would be substantially higher in the absence of the current 6 percent ad valorem buyer transaction tax. Our estimates are consistent with the observation that in the Netherlands ad valorem transaction costs mainly consist of buyer transaction costs.     

Cash Crop Production and the Process of Transformation

The state aided commercialization of the small farm is the focus of this paper. In theory, subsidies and price support policies are intended to give small farms access to capital inputs to encourage cash crop production. However, only larger holdings can afford to take advantage of state interventionist policies and profit thereby. State subsidies have now become an integral part of the production process. The unit of analysis is the household, viewed in the context of the village and the wider economy. The focus is on family labour relations and the process by which agricultural commercialization transforms the internal relations of the household. Commercialization accompanied by mechanization tends to intensify the work undertaken by women. Since the process of commoditization ties once subsistence farms to market forces, production relations cannot avoid being influenced by the wider economy. Only with a combination of macro and micro data, with focus on both internal and external household relations, can the position of women in rural areas realistically be conceptualized.     

HOMEOWNERSHIP IN AN UNCERTAIN WORLD WITH SUBSTANTIAL TRANSACTION COSTS*

ABSTRACT This paper presents a dynamic model of residential real estate tenure decisions that takes into account the substantial transaction costs and the uncertain time paths of rents and prices. By temporarily postponing decisions, buyers and sellers obtain additional information and may avoid transactions that are costly to reverse. One implication is that the combination of high transaction costs and substantial uncertainty can create a large wedge between a household's reservation prices for buying and selling a home, which can explain why households do not switch back and forth between owning and renting as home prices fluctuate.     

The Genesis of Economic Cooperation in the Stories of Joseph: A Constitutional and Institutional Economic Reconstruction

Abstract

The paper analyzes in constitutional and institutional economic terms Joseph’s economic policies, such as changes to property rights arrangements for farming, the introduction of a barter tax on crop production, and the multi-layered bureaucratic hierarchies of Egypt. Utilizing Buchanan’s approach to constitutional economics, I argue that these policies lowered attack/defense costs as they arise, when a group attempts to escape from the natural distribution state (the “war of all”, as Hobbes called it). A key thesis is that this encouraged interacting parties, already on the grounds of selfinterested choice, to engage in societal contracting out of the “war of all,” thereby reaping mutual gains.

Complementary to this strand of analysis, I have drawn on other institutional economic concepts, particularly those that were introduced by Williamson, and by North and Weingast. The paper argues in this respect that Joseph’s policies credibly and more reliably guaranteed property rights, which in turn lowered transaction costs of the interacting parties, i.e. Egypt and Israel. This ultimately yielded mutual gains and high economic performance for the society depicted in Genesis. In this way, cooperation was generated in economic terms.     

Sharing What Can Be Sold: Women Haus Maket Vendors in Port Moresby's Settlements

Dominant narratives of the economy, as well as policy discourses in Papua New Guinea (PNG), tend to separate the ‘formal’ from the ‘informal’ economy. Concurrently, there is a development policy emphasis on women's economic empowerment. In urban areas this has meant a policy focus on larger market places as sites where women need support for economic engagement. Within these policy discourses, one activity in urban areas usually relegated to the ‘informal’ economy is small home‐based market stalls, referred to in this paper as haus maket. Located at homes or on nearby roads, haus maket are prolific and available to the public, and as such provide a similar function to public market places as spaces to make money. This paper considers these public yet intimate spaces as sites where vendors, usually women, embody and lead contestations between money and moral value spheres. At a time when the policy emphasis is on the formal economy and larger market places in PNG, why do such small market places persist? The first aim of this paper is to establish the role of haus maket as a site where spheres of value intersect. Rather than being ‘informal’ and peripheral, I seek to foreground its centrality to the economy but also as a site where economic and social moral values conflate. The second aim of the paper is to examine the role of sharing as a form of transaction in its own right distinct from exchange as a transaction between two actors. Haus maket stalls are sites of sharing and of moral action and value where forms of value in the settlement are shaped and negotiated.     

Small Towns and Agriculture: Understanding the Spatial Pattern of Farm Linkages

Agricultural policy and farm lobby groups often stress the role of farm production in sustaining local economies. This paper considers the spatial pattern of upstream and downstream agricultural transactions of farms in North East Scotland and, in particular, the extent to which they take place within the locality of the farm holding. Three alternative definitions of “local” are considered: a distance-based measure; a measure which takes into account the location of the farm in relation to the nearest town; and a measure which takes into account the location of agribusinesses, defining a transaction as local if the farmer buys from (sells to) the nearest available input supplier (output purchaser). The results highlight the importance of allowing for context when explaining farmer purchasing and sales decisions. They also reveal a highly complex pattern of production-related linkages in the region, with many farmers choosing to bypass their most proximate agribusinesses. Certain towns are found to dominate agriculture-related transactions in the region, reflecting the spatial concentration of upstream and downstream agribusinesses. The findings provide new insights into theoretical debates on the role of small towns in the urban system and the changing importance of geographical distance in determining business transactions.     

INTRA-REGIONAL EMPLOYMENT GROWTH IN LUXEMBOURG (1994–2005)

The specialization of city-centres towards more advanced service activities has mostly been studied in the largest city-regions, the case of smaller urban centres being less well documented. In that context, the objective of this article is to analyse the role of sectoral and regional factors in employment growth in Luxembourg between 1994 and 2005. Using statistical data from the Luxembourg General Inspection of Social Security, this contribution distinguishes 12 categories of manufacturing industries and services according to an OECD-Eurostat knowledge-based classification. Five intra-regional areas are distinguished based on morphological and functional criteria in the Luxembourg Metropolitan Area. Using several indexes, this article first analyses the sectoral specialization and geographical concentration of employment. A model of intra-regional employment growth, initially developed by Marimon and Zilibotti and applied at the European level, is then shown to account for 40 per cent of employment growth. An estimation of the contributions of sectoral and geographical factors highlights the primacy of the latter over the former. Finally, the construction of virtual economies confirms the City's overall lower performance as compared to its close periphery. Results underscore a process of functional integration in the Luxembourg metropolitan area: as the core of the city undergoes a specialization process, the urban area benefits from a relocation of activities less sensitive to distance and transaction costs, while the periphery becomes increasingly diversified, notably in the South where traditional industrial activities are being replaced by service activities. These results suggest that the evolution pattern of employment growth in Luxembourg is very similar to that of some larger metropolitan centres, owing to its exceptional financial service activities.     

The Impact of Microfinance on Decision‐Making Agency: Evidence from South India

Evaluations of the effects of microfinance programmes on women's empowerment generate mixed results. While some are supportive of microfinance's ability to induce a process of economic, social and political empowerment, others are more sceptical and even point to a deterioration of women's overall well‐being. Against this background, development scholars and practitioners have sought to distil some of the ingredients that might increase the likelihood of empowerment or at least reduce adverse effects. This article formally tests the impact of some of the suggested changes in programme features on one particular dimension of empowerment: decision‐making agency. Using household survey data from South India, the author explores the importance of the borrower's gender and the lending technology for intra‐household decision‐making processes. It is shown that direct bank–borrower credit delivery does not challenge the existing decision‐making patterns, regardless of whether men or women receive the credit. These findings change when credit is combined with financial and social group intermediation. Women's group membership seriously shifts overall decision‐making patterns from norm‐guided behaviour and male decision‐making to more joint and female decision‐making. Longer‐term group membership and more intensive training and group meetings strengthen these patterns.