Simplified Glossary of Agricultural Economics Terms And
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Marxist Economics: How Capitalism Works, and How It Doesn't
MARXIST ECONOMICS: HOW CAPITALISM WORKS, ANO HOW IT DOESN'T 49 Another reason, however, was that he wanted to show how the appear- ance of "equal exchange" of commodities in the market camouflaged ~ , inequality and exploitation. At its most superficial level, capitalism can ' V be described as a system in which production of commodities for the market becomes the dominant form. The problem for most economic analyses is that they don't get beyond th?s level. C~apter Four Commodities, Marx argued, have a dual character, having both "use value" and "exchange value." Like all products of human labor, they have Marxist Economics: use values, that is, they possess some useful quality for the individual or society in question. The commodity could be something that could be directly consumed, like food, or it could be a tool, like a spear or a ham How Capitalism Works, mer. A commodity must be useful to some potential buyer-it must have use value-or it cannot be sold. Yet it also has an exchange value, that is, and How It Doesn't it can exchange for other commodities in particular proportions. Com modities, however, are clearly not exchanged according to their degree of usefulness. On a scale of survival, food is more important than cars, but or most people, economics is a mystery better left unsolved. Econo that's not how their relative prices are set. Nor is weight a measure. I can't mists are viewed alternatively as geniuses or snake oil salesmen. exchange a pound of wheat for a pound of silver. -
Rice, Technology, and History: the Case of China
RICE, TECHNOLOGY, AND HISTORY The Case of China By Francesca Bray Wet-rice farming systems have a logic of technical and economic evolution that is distinctively different from the more familiar Western pattern of agricultural development. The well-documented history of rice farming in China provides an opportunity for students to reassess some commonly held ideas about tech- nical efficiency and sustainable growth. rom 1000 to 1800 CE China was the world’s most populous state and its most powerful and productive economy. Rice farming was the mainstay of this empire. Rice could be grown successfully in only about half of the territory, in the south- F ern provinces where rainfall was abundant. There it was the staple food for all social classes, landlords and peasants, officials and artisans alike. The more arid climate in the north was not suited to rice; northern farmers grew dry-land grains like wheat, millet, and sorghum for local consumption. But the yields of these grains were relatively low, whereas southern rice farming produced sufficient surpluses to sustain government and commerce throughout China. Vast quantities of rice were brought north to provision the capital city— home to the political elite, the imperial court, and all the state ministries—and to feed the huge armies stationed along the northern frontier. People said that the north was like a lazy brother living off the generosity of his hard-working and productive southern sibling. Thou- sands of official barges carried rice from Jiangnan to the capital region along the Grand Canal, and more rice still was transported north in private ships along the coast (fig. -
1- TECHNOLOGY Q L M. Muniagurria Econ 464 Microeconomics Handout
M. Muniagurria Econ 464 Microeconomics Handout (Part 1) I. TECHNOLOGY : Production Function, Marginal Productivity of Inputs, Isoquants (1) Case of One Input: L (Labor): q = f (L) • Let q equal output so the production function relates L to q. (How much output can be produced with a given amount of labor?) • Marginal productivity of labor = MPL is defined as q = Slope of prod. Function L Small changes i.e. The change in output if we change the amount of labor used by a very small amount. • How to find total output (q) if we only have information about the MPL: “In general” q is equal to the area under the MPL curve when there is only one input. Examples: (a) Linear production functions. Possible forms: q = 10 L| MPL = 10 q = ½ L| MPL = ½ q = 4 L| MPL = 4 The production function q = 4L is graphed below. -1- Notice that if we only have diagram 2, we can calculate output for different amounts of labor as the area under MPL: If L = 2 | q = Area below MPL for L Less or equal to 2 = = in Diagram 2 8 Remark: In all the examples in (a) MPL is constant. (b) Production Functions With Decreasing MPL. Remark: Often this is thought as the case of one variable input (Labor = L) and a fixed factor (land or entrepreneurial ability) (2) Case of Two Variable Inputs: q = f (L, K) L (Labor), K (Capital) • Production function relates L & K to q (total output) • Isoquant: Combinations of L & K that can achieve the same q -2- • Marginal Productivities )q MPL ' Small changes )L K constant )q MPK ' Small changes )K L constant )K • MRTS = - Slope of Isoquant = Absolute value of Along Isoquant )L Examples (a) Linear (L & K are perfect substitutes) Possible forms: q = 10 L + 5 K Y MPL = 10 MPK = 5 q = L + K Y MPL = 1 MPK = 1 q = 2L + K Y MPL = 2 MPK = 1 • The production function q = 2 L + K is graphed below. -
Dangers of Deflation Douglas H
ERD POLICY BRIEF SERIES Economics and Research Department Number 12 Dangers of Deflation Douglas H. Brooks Pilipinas F. Quising Asian Development Bank http://www.adb.org Asian Development Bank P.O. Box 789 0980 Manila Philippines 2002 by Asian Development Bank December 2002 ISSN 1655-5260 The views expressed in this paper are those of the author(s) and do not necessarily reflect the views or policies of the Asian Development Bank. The ERD Policy Brief Series is based on papers or notes prepared by ADB staff and their resource persons. The series is designed to provide concise nontechnical accounts of policy issues of topical interest to ADB management, Board of Directors, and staff. Though prepared primarily for internal readership within the ADB, the series may be accessed by interested external readers. Feedback is welcome via e-mail ([email protected]). ERD POLICY BRIEF NO. 12 Dangers of Deflation Douglas H. Brooks and Pilipinas F. Quising December 2002 ecently, there has been growing concern about deflation in some Rcountries and the possibility of deflation at the global level. Aggregate demand, output, and employment could stagnate or decline, particularly where debt levels are already high. Standard economic policy stimuli could become less effective, while few policymakers have experience in preventing or halting deflation with alternative means. Causes and Consequences of Deflation Deflation refers to a fall in prices, leading to a negative change in the price index over a sustained period. The fall in prices can result from improvements in productivity, advances in technology, changes in the policy environment (e.g., deregulation), a drop in prices of major inputs (e.g., oil), excess capacity, or weak demand. -
Wartime Price Control and the Problem of Inflation
WARTIME PRICE CONTROL AND THE PROBLEM OF INFLATION J. M. CLARK* I. Inflation and the Normal Function of Price Everyone opposes "inflation"-or nearly everyone. And everyone agrees that war brings on inflation if it is allowed to run its natural course unresisted. But there is no real agreement as to just what "inflation" is. On the whole it seems best to consider that what we are talking about is harmful price increases of a widespread or general sort, and then go on to examine the things that do harm, and the kinds of harm they do; and forget this ill-defined and controversial term. So far as the term is used in this article, it will mean simply general price increases of harmful magnitude. In ordinary times, it is customary to say, price is the agency which brings supply and demand into equality with one another, allocates productive resources between different products, determines how much of each shall be produced and limits de- mand to the amount that is available. This is a shorthand form of statement, and in some respects a bit misleading. The chief misleading implication is that production responds only to price; and, if supply is short of demand, production will not increase except as price rises. It is true that in such a situation price will usually rise, and production will increase; but this leaves out the most essential part of the process: namely, an increase in the volume of buying orders. In a large-scale manufacturing industry, this alone will ordinarily result in increased output. -
Safe Use of Wastewater in Agriculture: Good Practice Examples
SAFE USE OF WASTEWATER IN AGRICULTURE: GOOD PRACTICE EXAMPLES Hiroshan Hettiarachchi Reza Ardakanian, Editors SAFE USE OF WASTEWATER IN AGRICULTURE: GOOD PRACTICE EXAMPLES Hiroshan Hettiarachchi Reza Ardakanian, Editors PREFACE Population growth, rapid urbanisation, more water intense consumption patterns and climate change are intensifying the pressure on freshwater resources. The increasing scarcity of water, combined with other factors such as energy and fertilizers, is driving millions of farmers and other entrepreneurs to make use of wastewater. Wastewater reuse is an excellent example that naturally explains the importance of integrated management of water, soil and waste, which we define as the Nexus While the information in this book are generally believed to be true and accurate at the approach. The process begins in the waste sector, but the selection of date of publication, the editors and the publisher cannot accept any legal responsibility for the correct management model can make it relevant and important to any errors or omissions that may be made. The publisher makes no warranty, expressed or the water and soil as well. Over 20 million hectares of land are currently implied, with respect to the material contained herein. known to be irrigated with wastewater. This is interesting, but the The opinions expressed in this book are those of the Case Authors. Their inclusion in this alarming fact is that a greater percentage of this practice is not based book does not imply endorsement by the United Nations University. on any scientific criterion that ensures the “safe use” of wastewater. In order to address the technical, institutional, and policy challenges of safe water reuse, developing countries and countries in transition need clear institutional arrangements and more skilled human resources, United Nations University Institute for Integrated with a sound understanding of the opportunities and potential risks of Management of Material Fluxes and of Resources wastewater use. -
The Great Divergence the Princeton Economic History
THE GREAT DIVERGENCE THE PRINCETON ECONOMIC HISTORY OF THE WESTERN WORLD Joel Mokyr, Editor Growth in a Traditional Society: The French Countryside, 1450–1815, by Philip T. Hoffman The Vanishing Irish: Households, Migration, and the Rural Economy in Ireland, 1850–1914, by Timothy W. Guinnane Black ’47 and Beyond: The Great Irish Famine in History, Economy, and Memory, by Cormac k Gráda The Great Divergence: China, Europe, and the Making of the Modern World Economy, by Kenneth Pomeranz THE GREAT DIVERGENCE CHINA, EUROPE, AND THE MAKING OF THE MODERN WORLD ECONOMY Kenneth Pomeranz PRINCETON UNIVERSITY PRESS PRINCETON AND OXFORD COPYRIGHT 2000 BY PRINCETON UNIVERSITY PRESS PUBLISHED BY PRINCETON UNIVERSITY PRESS, 41 WILLIAM STREET, PRINCETON, NEW JERSEY 08540 IN THE UNITED KINGDOM: PRINCETON UNIVERSITY PRESS, 3 MARKET PLACE, WOODSTOCK, OXFORDSHIRE OX20 1SY ALL RIGHTS RESERVED LIBRARY OF CONGRESS CATALOGING-IN-PUBLICATION DATA POMERANZ, KENNETH THE GREAT DIVERGENCE : CHINA, EUROPE, AND THE MAKING OF THE MODERN WORLD ECONOMY / KENNETH POMERANZ. P. CM. — (THE PRINCETON ECONOMIC HISTORY OF THE WESTERN WORLD) INCLUDES BIBLIOGRAPHICAL REFERENCES AND INDEX. ISBN 0-691-00543-5 (CL : ALK. PAPER) 1. EUROPE—ECONOMIC CONDITIONS—18TH CENTURY. 2. EUROPE—ECONOMIC CONDITIONS—19TH CENTURY. 3. CHINA— ECONOMIC CONDITIONS—1644–1912. 4. ECONOMIC DEVELOPMENT—HISTORY. 5. COMPARATIVE ECONOMICS. I. TITLE. II. SERIES. HC240.P5965 2000 337—DC21 99-27681 THIS BOOK HAS BEEN COMPOSED IN TIMES ROMAN THE PAPER USED IN THIS PUBLICATION MEETS THE MINIMUM REQUIREMENTS OF ANSI/NISO Z39.48-1992 (R1997) (PERMANENCE OF PAPER) WWW.PUP.PRINCETON.EDU PRINTED IN THE UNITED STATES OF AMERICA 3579108642 Disclaimer: Some images in the original version of this book are not available for inclusion in the eBook. -
PHOTOSYNTHESIS • Life on Earth Ultimately Depends on Energy Derived from the Sun
Garden of Earthly Delights or Paradise Lost? [email protected] Old Byzantine Proverb: ‘He who has bread may have troubles He who lacks it has only one’ Peter Bruegel the Elder: The Harvest (1565) (Metropolitan Museum of Art, New York. USA) PHOTOSYNTHESIS • Life on earth ultimately depends on energy derived from the sun. • Photosynthesis by green plants is the only process of Sucrose biological importance that can capture this energy. Starch Proteins • It provides energy, organic matter and Oils oxygen, and is the only sustainble energy source on our planet. WE DEPEND TOTALLY ON PLANTS TO SUSTAIN ALL OTHER LIFE FORMS 1 Agriculture the most important event in human history Agriculture critical to the future of our planet and humanity Agriculture is part of the knowledge based bio-economy of the 21st century Each Year the World’s Population will Grow by about ca. 75 Million People. The world population has doubled in the last 50 years 2008 Developing countries 1960 10% of the Population Lives 1927 on 0.5% of the World’s Income Developed countries 2 Four innovations brought about change in agriculture in the twentieth century.What are the innovations which will change agriculture in this century? Mechanisation: Tractors freed up perhaps 25 % of extra land to grow human food instead of fodder for draught horses and oxen; • Fertilisers: Fritz Haber’s 1913 invention of a method of synthesising ammonia transformed agricultural productivity, so that today nearly half the nitrogen atoms in your body were ‘fixed’ from the air in an ammonia factory, not in a soil bacterium; • Pesticides: Chemicals derived from hydrocarbons enabled farmers to grow high-density crops year after year without severe loss to pests and weeds; • Genetics: In the 1950s Norman Borlaug crossed a variety of dwarf wheat, originally from Japan, with a different Mexican strain to make dwarf wheats that responded to heavy fertilisation by producing more seeds, not longer stalks. -
API-119: Advanced Macroeconomics for the Open Economy I, Fall 2020
Sep 1, 2020 API-119: Advanced Macroeconomics for the Open Economy I, Fall 2020 Harvard Kennedy School Course Syllabus: prospectus, outline/schedule and readings Staff: Professor: Jeffrey Frankel [email protected] Faculty Assistant: Minoo Ghoreishi [email protected] Teaching Fellow: Can Soylu Course Assistants: Julio Flores, Alberto Huitron & Yi Yang. Email address to send all questions for the teaching team: [email protected]. Times: Lectures: Tuesdays and Thursdays, 10:30-11:45 a.m. EST.1 Review Sessions: Tuesdays, 12:30-1:30 pm; Fridays, 1:30-2:30 pm EST.2 Final exam: Friday, Dec. 11, 8:00-11:00 am EST. Prospectus Course Description: This course is the first in the two-course sequence on Macroeconomic Policy in the MPA/ID program. It particularly emphasiZes the international dimension. The general perspective is that of developing countries and other small open economies, defined as those for whom world income, world inflation and world interest rates can be taken as given, and possibly the terms of trade as well. The focus is on monetary, fiscal, and exchange rate policy, and on the determination of the current account balance, national income, and inflation. Models of devaluation include one that focuses on the price of internationally traded goods relative to non-traded goods. A theme is the implications of increased integration of global financial markets. Another is countries’ choice of monetary regime, especially the degree of exchange rate flexibility. Applications include Emerging Market crises and problems of commodity-exporting countries. (Such topics as exchange rate overshooting, speculative attacks, portfolio diversification and debt crises will be covered in the first half of Macro II in February-March.) Nature of the approach: The course is largely built around analytical models. -
1 Risk Rationing and Jump Utility Leslie J. Verteramo Chiu Graduate
Risk Rationing and Jump Utility Leslie J. Verteramo Chiu Graduate Researcher Dyson School of Applied Economics and Management Cornell University Selected Paper prepared for presentation at the Agricultural & Applied Economics Association’s 2013 AAEA & CAES Joint Annual Meeting, Washington, DC, August 4-6, 2013. Copyright 2013 by Leslie J. Verteramo Chiu. All rights reserved. Readers may make verbatim copies of this document for non-commercial purposes by any means, provided that this copyright notice appears on all such copies. 1 Introduction In recent years a renewed policy interest in rural credit for generally poor and underrepresented farmers has given rise to a more concentrated interest in factors affecting credit demand. An offshoot to this effort has culminated in the refinement of credit rationing to include not only the notion of price and quantity rationing but also risk rationing (Boucher, Carter and Guirkinger (2008)). Risk rationing describes an individual that having the asset wealth to qualify for a credit, voluntarily refrains from it for fear of losing his collateral. Unlike borrowers, risk rationing individuals believe that by taking a loan, a positive and sufficiently large probability of default may occur. The concept of risk rationing has been observed by many but not formally analyzed. An early sentiment of risk rationing is by Binswanger and Siller (1983) who state that “If the disutility of the loan is sufficiently high, small farmers may stop borrowing altogether, i.e. the credit market for small farmers may disappear because of lack of demand, despite the fact that small farmers may still have available collateral in the form of unencumbered land” (page 17), concluding that “It is important to realize that it is not an innate deficiency in the willingness of small farmers to take risks that hold them back” (page 19). -
Dakota Olson Hometown
Evaluating the Effect of Management Practices on Soil Moisture, Aggregation and Crop Development By: Dakota Olson Hometown: Keswick, IA The World Food Prize Foundation 2014 Borlaug-Ruan International Internship Research Center: International Maize and Wheat Improvement Center (CIMMYT) Location: El Batan, Mexico P a g e | 2 Table of Contents Acknowledgements……………………………………………………………………………..3 Background Information………………………………………………………………………..4 CIMMYT Research Institute The Dr. Borlaug Legacy (in relation to CIMMYT) Discuss the long-term project of CIMMYT (1999-2014) Introduction………………………………………………………………………………………5 Introduction to Field Management Practices Objectives Conservation Agriculture Program Procedures and Methodology………………………………………………………………….6 The Field Plot Technical Skills o Yield Calculations o Time to Pond Measurements o Calculating Volumetric Water Content Results……………………………………………………………………………………………8 Objective 1: Effect of Tillage Method and Crop Residue on Soil Moisture Objective 2: Effect of Tillage Method and Crop Residue on Crop Yield Objective 3: Relationship between Time to Pond and Crop Yield Analysis of Results…………………………………………………………………………….11 Discussion, Conclusion, and Recommendations…………………………………………..15 Personal Experiences…………………………………………………………………………17 Pictures…………………………………………………………………………………………20 References and Citations…………………………………………………………………….21 P a g e | 3 Preface and Acknowledgements My success at the International Maize and Wheat Improvement Center (CIMMYT) would not be possible without the multitude of supporters that allowed me to pursue this incredible opportunity. A massive thank-you to the World Food Prize Organization and the staff and supporters that supply hundreds of youth and adults across the world with empowerment and opportunities to play as a stake-holder in international development issues. A big thank- you to Lisa Fleming of the World Food Prize Foundation for playing an integral role in the success of my international internship while in Mexico. -
Tipping Points in Macroeconomic Agent-Based Models
Tipping points in macroeconomic Agent-Based models Stanislao Gualdi,1 Marco Tarzia,2 Francesco Zamponi,3 and Jean-Philippe Bouchaud4 1 Universit´ePierre et Marie Curie - Paris 6, Laboratoire de Physique Th´eoriquede la Mati`ere Condens´ee, 4, Place Jussieu, Tour 12, 75252 Paris Cedex 05, France and IRAMIS, CEA-Saclay, 91191 Gif sur Yvette Cedex, France ∗ 2 Universit´ePierre et Marie Curie - Paris 6, Laboratoire de Physique Th´eoriquede la Mati`ere Condens´ee, 4, Place Jussieu, Tour 12, 75252 Paris Cedex 05, France 3Laboratoire de Physique Th´eorique, Ecole´ Normale Sup´erieure, UMR 8549 CNRS, 24 Rue Lhomond, 75231 Paris Cedex 05, France 4CFM, 23 rue de l'Universit´e,75007 Paris, France, and Ecole Polytechnique, 91120 Palaiseau, France. The aim of this work is to explore the possible types of phenomena that simple macroeconomic Agent-Based models (ABM) can reproduce. Our motivation is to understand the large macro- economic fluctuations observed in the \Mark I" ABM devised by D. Delli Gatti and collaborators. Our major finding is the existence of a first order (discontinuous) phase transition between a \good economy" where unemployment is low, and a \bad economy" where unemployment is high. We show that this transition is robust against many modifications of the model, and is induced by an asymmetry between the rate of hiring and the rate of firing of the firms. This asymmetry is induced, in Mark I, by the interest rate. As the interest rate increases, the firms become more and more reluctant to take further loans. The unemployment level remains small until a tipping point beyond which the economy suddenly collapses.