KEES BURGER, MARTIJN DE GROOT, JAAP POST and VINUS's Agricultural Economics and Policy: International Challenges PDF


ISBN-10: 044459955X

ISBN-13: 9780444599551

Foreign demanding situations in agricultural economics for the nineties will come from a redirection of the EC coverage, encouraged via GATT negotiations, the hole in the direction of jap Europe and environmental concerns, from a creation orientated coverage in the direction of rural coverage, aiming at conserving weak areas, holding 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

Sample text

As soon as the marginal productivity of any fixed factor goes b e y o n d this interval, the factor in question is n o longer fixed, a n d this allows changes in farm structures, hence in farm production, to occur. This is actually the w a y agricultural production (both in terms of its aggregate quantity a n d its composition) evolves over 15 t i m e . But h o w is the marginal productivity of fixed factors determined? Partly by o u t p u t prices, because the latter are important in the determination of the Lagrangians associated with each factor fixity constraint in those maximisation problems that any farmer m u s t solve w h e n he takes decisions.

2-32 Mandelbrott, B. (1966): "Nouveaux modales de la variation des prix"; Cahiers du seminaire d'econometrie du CNRS (9) p p . 53-56 Nerlove M. G. E. Stiglitz (1981): The theory of commodity price stabilisation; Ox­ ford, Clarendon Press Pasinetti, Luigi L. S. , L. Squire, a n d J. Strauss (1986): "A survey of households models: recent findings a n d policy implications"; The World Bank Economic Review 1 (1986)1, p p . 1-30 Zajdenweber, D. (1976): Hasard et prevision; Paris, Economica 38 Notes 1.

However, the true field of application for the above considerations is in the design­ ing of agricultural policies. We have seen h o w cautiously should be taken the com­ m o n w i s d o m according to which increasing prices automatically increases production a n d vice versa. Wherever prices are determined b y state interventions and public policy, the political implications of this remark will be evident. But even in "free market" situations, w h e r e prices and quantities are left to the "rule of the market", the above analysis m a y lead to a reappraisal of the role of the State in agri­ culture.

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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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