By KEES BURGER, MARTIJN DE GROOT, JAAP POST and VINUS ZACHARIASSE (Eds.)
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 aiming on the provision of environmentally fascinating output. This ebook focusses on advancements which are guaranteed to dominate the dialogue of agricultural economics and coverage in t. Read more...
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Extra info for Agricultural Economics and Policy: International Challenges for the Nineties
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.
Agricultural Economics and Policy: International Challenges for the Nineties by KEES BURGER, MARTIJN DE GROOT, JAAP POST and VINUS ZACHARIASSE (Eds.)