Delegation Of Quality Control In Value Chains

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Delegation of quality control in value chains

Saak, Alexander E.
Delegation of quality control in value chains Book PDF

Author : Saak, Alexander E.
Publisher : Intl Food Policy Res Inst
Page : 56 pages
File Size : 51,9 Mb
Release : 2016-04-21
Category : Social Science
ISBN : 8210379456XXX

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Delegation of quality control in value chains by Saak, Alexander E. Pdf

This paper studies the decision of a firm that sells an experience good to delegate quality control to an independent monitor. In an infinitely repeated game consumers’ trust provides incentives to (1) acquire information about whether the good is defective and (2) withhold the good from sale if it is defective. If third-party reports are observable to consumers, delegation of monitoring lessens the first and dispenses with the second moral hazard concern but also creates agency costs due to either limited liability or lack of commitment. In equilibrium the firm controls quality without an independent monitor only if trades are sufficiently frequent and consumer information about quality is sufficiently precise. This result holds under different assumptions about feasible contracts, collusion, verifiability of reports, joint inspections, and the number of firms that hire the third-party monitor. If third-party reports are not publicly observed, delegation can be optimal only if two or more firms hire the third-party monitor because then both moral hazard concerns are present under delegation.

A model of reporting and controlling outbreaks by public health agencies

Saak, Alexander E.,Hennessy, David A.
A model of reporting and controlling outbreaks by public health agencies Book PDF

Author : Saak, Alexander E.,Hennessy, David A.
Publisher : Intl Food Policy Res Inst
Page : 48 pages
File Size : 44,5 Mb
Release : 2016-05-03
Category : Social Science
ISBN : 8210379456XXX

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A model of reporting and controlling outbreaks by public health agencies by Saak, Alexander E.,Hennessy, David A. Pdf

When an outbreak of an infectious disease is suspected, a local health agency may notify a state or federal agency and request additional resources to investigate and, if necessary, contain it. However, due to capacity constraints, state and federal health agencies may not be able to grant all such requests, which may give an incentive to local agencies to request help strategically. We study a model of detection and control of an infectious disease by local health agencies in the presence of imperfect information about the likelihood of an outbreak and limited diagnostic capacity. When diagnostic capacity is rationed based on reports of symptoms, the decision to report symptoms or not creates a trade-off. On the one hand, rigorous testing allows one to make an informed disease control decision. On the other hand, it also increases the probability that the disease will spread from an untested area where fewer precautionary measures are taken. Symptoms are overreported (respectively, reported truthfully, or underreported) when the cost of disease control is sufficiently small (respectively, in some intermediate range, or sufficiently large). If the disease incidence decreases or infectiousness increases, symptoms are reported less frequently. If the precision of private signals increases, the extent of overreporting of symptoms may increase. For different values of the parameters it can be socially optimal to subsidize or tax requests for additional investigations and confirmatory testing.

The economic value of seasonal forecasts stochastic economywide analysis for East Africa

Rodrigues, Joao,Thurlow, James,Landman, Willem,Ringler, Claudia,Robertson, Richard D.,Zhu, Tingju
The economic value of seasonal forecasts stochastic economywide analysis for East Africa Book PDF

Author : Rodrigues, Joao,Thurlow, James,Landman, Willem,Ringler, Claudia,Robertson, Richard D.,Zhu, Tingju
Publisher : Intl Food Policy Res Inst
Page : 32 pages
File Size : 42,6 Mb
Release : 2016-08-05
Category : Science
ISBN : 8210379456XXX

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The economic value of seasonal forecasts stochastic economywide analysis for East Africa by Rodrigues, Joao,Thurlow, James,Landman, Willem,Ringler, Claudia,Robertson, Richard D.,Zhu, Tingju Pdf

There is growing interest within the climate change and development community in using seasonal forecast information to reduce the losses to agriculture resulting from climate variability, especially within food-insecure countries. However, forecast systems are expensive to establish and maintain, and therefore gauging the potential economic return to investments in forecast systems is crucial. Most studies that evaluate seasonal forecasts focus on developed countries and/or overlook agriculture’s economywide linkages. Yet forecasts may be more valuable in developing regions such as East Africa, where climate is variable and agriculture has macroeconomic importance. We use computable general equilibrium and process-based crop models to estimate the potential economywide value of national seasonal forecast systems in Kenya, Malawi, Mozambique, Tanzania, and Zambia. Stochastic seasonal simulations produce value distributions for forecasts of varying accuracy and varying levels of farm coverage. A timely and accurate forecast adopted by all farmers generates average regional income gains of US$113 million per year. Gains are much higher during extreme climate events and are generally pro-poor. The forecast value falls when forecast skill and farm coverage decline. National economic and trading structures, including the importance of agricultural exports, are found to be major determinants of forecast value. Economywide approaches are therefore needed to complement farm-level analysis when evaluating forecast systems in low-income agrarian economies.

Agricultural mechanization and agricultural transformation

Diao, Xinshen,Silver, Jed,Takeshima, Hiroyuki
Agricultural mechanization and agricultural transformation Book PDF

Author : Diao, Xinshen,Silver, Jed,Takeshima, Hiroyuki
Publisher : Intl Food Policy Res Inst
Page : 56 pages
File Size : 42,9 Mb
Release : 2016-04-29
Category : Political Science
ISBN : 8210379456XXX

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Agricultural mechanization and agricultural transformation by Diao, Xinshen,Silver, Jed,Takeshima, Hiroyuki Pdf

A renewed focus on agriculture’s potential contribution to economic transformation in Africa has resulted in increased attention paid to agricultural mechanization. African agriculture still relies predominantly on human muscle power despite anecdotal evidence on urbanization and rising rural wages, in contrast to other developing regions that have experienced rapid increases in agricultural mechanization during the past few decades. Past state-led mechanization pushes in Africa often failed due to insufficient understanding of the nature of demand for mechanization technologies among farmers and insufficient knowledge of private-sector functions. This background paper reviews the factors likely to influence farmer demand for mechanization in Africa and details different existing and potential mechanization supply models. Although an empirical analysis of mechanization demand and the effectiveness of supply chains is beyond the scope of this paper, in part due to data limitations, this paper suggests that demand for mechanization may be emerging in some parts of Africa. It also suggests that private-sector-driven supply models are better positioned to meet this demand than direct government involvement and certain types of subsidized programs. The paper then identifies possible areas for government support to complement private-sector leadership in developing mechanization supply chains. Nevertheless, significant further research is required to better understand the changing nature of mechanization demand in Africa and the extent and effectiveness of different supply models in meeting it.

Boserupian pressure and agricultural mechanization in modern Ghana

Cossar, Frances
Boserupian pressure and agricultural mechanization in modern Ghana Book PDF

Author : Cossar, Frances
Publisher : Intl Food Policy Res Inst
Page : 32 pages
File Size : 47,6 Mb
Release : 2016-04-29
Category : Political Science
ISBN : 8210379456XXX

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Boserupian pressure and agricultural mechanization in modern Ghana by Cossar, Frances Pdf

The adoption of machinery in agricultural production in Africa south of the Sahara has been far behind the level of mechanization found in Asia and Latin America. However, recent survey data have revealed high levels of machinery use in localized areas of cereal production in northern Ghana. A survey conducted by the International Food Policy Research Institute, in partnership with the Savannah Agriculture Research Institute, found that in some areas more than 80 percent of farmers were using machinery for at least one operation. This paper considers the theoretical drivers of agricultural intensification, as outlined by Boserup, Pingali, and Binswanger, and the extent to which they are able to explain the spatial variation in machinery use found in northern Ghana. Population pressure, market access, and agroecological conditions are considered key drivers that cause farmers to find ways to increase productivity and adopt new technologies. Combining survey data with geospatial datasets, the empirical analysis finds that population growth and travel time to the local urban center explain a significant and large proportion of the variation in machinery use by farmers.

Long-term drivers of food and nutrition security

Laborde Debucquet, David,Majeed, Fahd,Tokgoz, Simla,Torero, Máximo
Long term drivers of food and nutrition security Book PDF

Author : Laborde Debucquet, David,Majeed, Fahd,Tokgoz, Simla,Torero, Máximo
Publisher : Intl Food Policy Res Inst
Page : 44 pages
File Size : 51,7 Mb
Release : 2016-05-18
Category : Political Science
ISBN : 8210379456XXX

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Long-term drivers of food and nutrition security by Laborde Debucquet, David,Majeed, Fahd,Tokgoz, Simla,Torero, Máximo Pdf

The 2015 Global Hunger Index suggests that despite progress in reducing hunger worldwide, hunger levels in 52 of 117 countries in the 2015 Global Hunger Index remain “serious” or “alarming.” Since achieving and maintaining food and nutrition security (FNS) remains a goal for all countries, it is important to understand the individual, national, and global factors that affect FNS. This paper proposes an analytical framework to identify and analyze the respective roles of key long-term drivers of FNS. We start by identifying what the key variables affecting FNS are at the household and country level, and then we continue by defining what the main exogenous or endogenous drivers affecting these variables are. We discuss the key drivers of both aggregated food supply and demand and therefore their impact on prices. Specifically, for aggregated food demand, we discuss demographic factors, income growth, changes in dietary preferences, aggregated domestic distortions, and overall quality of the food system. With respect to the drivers of aggregated food supply, we discuss land available for food products and the drivers behind land availability, the share of waste/losses generated by the food system, and the normalized average yield. We define yield as the amount of nutrients produced by unit of land. It depends both on the physical yield of the crop or the livestock and on the quality of the food produced. It also can be affected by the changes in production patterns linked to the different dietary patterns of the consumers and by climate change. We emphasize the fact that in many cases, key drivers may have ambiguous effects on the FNS situation of different agents. For instance, more liberal trade policies will affect real income, terms of trade, demand and supply, returns of factors, foreign direct investments, and food prices and thus may lead to the improvement of the global-level FNS, that is, the FNS of the majority of the population. At the same time, more liberal trade policies may bring food insecurity to some households. Therefore, careful quantitative assessment is needed for each policy option. Finally, we propose a typology of variables that will help modelers adapt their models to study the different drivers through both direct and indirect effects.

Contracting by small farmers in commodities with export potential

Kumar, Anjani,Roy, Devesh,Tripathi, Gaurav,Joshi, Pramod Kumar,Adhikari, Rajendra Prasad
Contracting by small farmers in commodities with export potential Book PDF

Author : Kumar, Anjani,Roy, Devesh,Tripathi, Gaurav,Joshi, Pramod Kumar,Adhikari, Rajendra Prasad
Publisher : Intl Food Policy Res Inst
Page : 32 pages
File Size : 47,5 Mb
Release : 2016-05-20
Category : Political Science
ISBN : 8210379456XXX

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Contracting by small farmers in commodities with export potential by Kumar, Anjani,Roy, Devesh,Tripathi, Gaurav,Joshi, Pramod Kumar,Adhikari, Rajendra Prasad Pdf

This study is undertaken to quantify the benefits of contract farming (CF) on farmers’ income in a case where new market opportunities are emerging for smallholder farmers in Nepal. CF is emerging as an important form of vertical coordination in the agrifood supply chain. The prospect for CF in a country like Nepal with accessibility issues, underdeveloped markets, and a lack of amenities remains ambiguous. Contractors find it difficult to build links in these cases, particularly when final consumers have quality and safety requirements. However, a lack of other market opportunities makes the contracts more sustainable. The latter happens if there are product-specific quality advantages because of agroecology and, more important, lack of side-selling opportunities. Concerns remain about monoposonistic powers of the buyers when small farmers do not have outside options. Results of this study show that CF is significantly more profitable (81 percent greater net income) than independent production, the main pathway being higher yield and price realization. The positive impact of CF on farmers’ profits can help Nepal in harnessing the growing demand for pulses, especially in neighboring international markets, like India.

Understanding compliance in programs promoting conservation agriculture

Ward, Patrick S.,Bell, Andrew R.,Droppelmann, Klaus,Benton, Tim
Understanding compliance in programs promoting conservation agriculture Book PDF

Author : Ward, Patrick S.,Bell, Andrew R.,Droppelmann, Klaus,Benton, Tim
Publisher : Intl Food Policy Res Inst
Page : 28 pages
File Size : 52,7 Mb
Release : 2016-05-13
Category : Political Science
ISBN : 8210379456XXX

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Understanding compliance in programs promoting conservation agriculture by Ward, Patrick S.,Bell, Andrew R.,Droppelmann, Klaus,Benton, Tim Pdf

Land degradation and soil erosion have emerged as serious challenges to smallholder farmers throughout southern Africa. To combat these challenges, conservation agriculture (CA) is widely promoted as a sustainable package of agricultural practices. Despite the many potential benefits of CA, however, adoption remains low. Yet relatively little is known about the decision-making process in choosing to adopt CA. This article attempts to fill this important knowledge gap by studying CA adoption in southern Malawi. Unlike what is implicitly assumed when these packages of practices are introduced, farmers view adoption as a series of independent decisions rather than a single decision. Yet the adoption decisions are not wholly independent. We find strong evidence of interrelated decisions, particularly among mulching crop residues and practicing zero tillage, suggesting that mulching residues and intercropping or rotating with legumes introduces a multiplier effect on the adoption of zero tillage.

Rent Dispersion in the US Agricultural Insurance Industry

Smith, Vincent H.,Glauber, Joseph,Dismukes, Robert
Rent Dispersion in the US Agricultural Insurance Industry Book PDF

Author : Smith, Vincent H.,Glauber, Joseph,Dismukes, Robert
Publisher : Intl Food Policy Res Inst
Page : 40 pages
File Size : 47,6 Mb
Release : 2016-05-20
Category : Political Science
ISBN : 8210379456XXX

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Rent Dispersion in the US Agricultural Insurance Industry by Smith, Vincent H.,Glauber, Joseph,Dismukes, Robert Pdf

A central, but inadequately explored issue with respect to subsidized crop insurance programs concerns the costs of delivering insurance coverage to farmers. This study examines that issue in the context of the heavily subsidized US crop insurance program which has often been put forward as a model for agricultural insurance programs in other countries. US Government programs often rely on private firms to deliver income transfers or services, which then establish their own rent-seeking lobbies, which are shared with input suppliers. This rent dispersion process is examined in the context of the U.S. agricultural insurance industry, which receives as much as one third of the annual subsidies that support the federal crop insurance program. We find that as total payments to insurance companies increased between 2001 and 2009, an increasingly large share of the agricultural insurance industry’s rents accrued to insurance agents, although in markets where insurance companies possessed some oligopsony power, agent payments are smaller. The findings also suggest that the insurance industry (companies and independent agents) would almost surely provide the same service for substantially less than the gross revenues from the subsidies and underwriting gains they received.

Anchoring Bias in Recall Data

Godlonton, Susan,Hernandez, Manuel A.,Murphy, Michael
Anchoring Bias in Recall Data Book PDF

Author : Godlonton, Susan,Hernandez, Manuel A.,Murphy, Michael
Publisher : Intl Food Policy Res Inst
Page : 36 pages
File Size : 44,7 Mb
Release : 2016-05-20
Category : Business & Economics
ISBN : 8210379456XXX

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Anchoring Bias in Recall Data by Godlonton, Susan,Hernandez, Manuel A.,Murphy, Michael Pdf

Understanding the magnitude and source of measurement biases in self-reported data is critical to effective economic policy research. This paper examines the role of anchoring bias in self-reports of objective and subjective outcomes under recall. The research exploits a unique panel survey data set collected over a three-year period from four countries in Central America. It assesses whether respondents use their reported value of specific measures from the most recent survey period as a cognitive heuristic when recalling the value from a previous period, while controlling for the value they reported earlier. We find strong evidence of sizable anchoring bias in self-reported retrospective indicators for both objective measures (household and per capita income, wages, and hours spent on the household’s main activity) and subjective measures (reports of happiness, health, stress, and well-being). In general, we also observe a larger bias in response to negative changes for objective indicators and a larger bias in response to positive changes for subjective indicators.

Qualitative methods for gender research in agricultural development

Rubin, Deborah
Qualitative methods for gender research in agricultural development Book PDF

Author : Rubin, Deborah
Publisher : Intl Food Policy Res Inst
Page : 32 pages
File Size : 52,8 Mb
Release : 2016-05-27
Category : Political Science
ISBN : 8210379456XXX

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Qualitative methods for gender research in agricultural development by Rubin, Deborah Pdf

The rise of mixed methods approaches to development-oriented research has brought new attention to qualitative research methods. This paper describes the use of qualitative approaches to illuminate gender relations in agricultural development research and project implementation. For gender research, qualitative methods can be particularly helpful in illuminating how men and women view their lives. Drawing on literature about social science methods and linking it to recent examples of qualitative methods employed in research and development projects, the paper argues for greater precision in key concepts of gender research, starting with sex and gender. From the many possible qualitative methods used in development work, the paper focuses on several common observational (both direct and participatory) and interview techniques, the latter including key informant and group interviews and focus group discussions. Researchers use various techniques to gather different types of information, for example, mapping techniques to understand men’s and women’s different types of knowledge about their environment and eliciting in-depth information on a single topic with key informants. In a brief discussion of the analysis of qualitative data, the paper notes that informant responses are not “the truth” but need to be assessed against other sources of data. Finally, there is a short discussion of how qualitative data have been used in comparative work. The paper concludes that the results of good qualitative research on gender relations can help identify the locally specific pathways needed to achieve gender-transformative development approaches.

A dynamic spatial model of agricultural price transmission

Goundan, Anatole,Tankari, Mahamadou Roufahi
A dynamic spatial model of agricultural price transmission Book PDF

Author : Goundan, Anatole,Tankari, Mahamadou Roufahi
Publisher : Intl Food Policy Res Inst
Page : 28 pages
File Size : 55,6 Mb
Release : 2016-06-09
Category : Social Science
ISBN : 8210379456XXX

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A dynamic spatial model of agricultural price transmission by Goundan, Anatole,Tankari, Mahamadou Roufahi Pdf

Spatial interactions are essential drivers of price transmission mechanisms and may significantly affect any food’s policy outcomes. However, spatial aspects seem to be generally overlooked when analyzing price transmission. This paper attempts to fill this gap by highlighting the usefulness of spatial interaction and models for market integration analysis. A spatial dynamic panel datamodel is presented and applied to Niger’s millet market. Empirical results show that (1) the millet market is partly integrated, (2) locally traded commodities (millet and sorghum) are linked by a cross-commodity price transmission, (3) most imported cereals prices, which for Niger is maize and rice, did not affect the millet market, and (4) no cross-regions price transmissionoccurred for the millet market.

Labor adaptation to climate variability in Eastern Africa

Dou, Xiaoya,Gray, Clark,Mueller, Valerie,Sheriff, Glen
Labor adaptation to climate variability in Eastern Africa Book PDF

Author : Dou, Xiaoya,Gray, Clark,Mueller, Valerie,Sheriff, Glen
Publisher : Intl Food Policy Res Inst
Page : 32 pages
File Size : 50,6 Mb
Release : 2016-06-17
Category : Political Science
ISBN : 8210379456XXX

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Labor adaptation to climate variability in Eastern Africa by Dou, Xiaoya,Gray, Clark,Mueller, Valerie,Sheriff, Glen Pdf

As countries design climate change adaptation policies, it is important to understand how workers alter behavior in response to changes in temperature. Nonetheless, the impact of temperature on labor markets is poorly documented, especially in Africa. We address this gap by analyzing panel surveys of labor choices by sector, contractual arrangement, and migration status in four East African countries. Merging survey information with high-resolution climate data, we assess how workers shift employment in response to temperature anomalies. Results suggest important distinctions between rural and urban areas. In urban areas, only agricultural self-employment and migration are responsive to temperature, with participation in both activities decreasing at high extremes. Urban out-migration is used as a tool to increase incomes in “good” years rather than an adaptation mechanism during bad years. In contrast, out-migration appears to be a means of adapting to high temperatures in rural areas, especially among households with relatively little agricultural land. The combined impact of these forces suggests that a 2 standard deviation increase in temperature results in a 7 percent increase in urban unemployment and no significant impact on rural unemployment.

A farm-level perspective of the policy challenges for export diversification in Malawi

Johnson, Michael E.,Edelman, Brent,Kazembe, Cynthia
A farm level perspective of the policy challenges for export diversification in Malawi Book PDF

Author : Johnson, Michael E.,Edelman, Brent,Kazembe, Cynthia
Publisher : Intl Food Policy Res Inst
Page : 52 pages
File Size : 50,7 Mb
Release : 2016-08-26
Category : Political Science
ISBN : 8210379456XXX

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A farm-level perspective of the policy challenges for export diversification in Malawi by Johnson, Michael E.,Edelman, Brent,Kazembe, Cynthia Pdf

The primary goal of the study is to investigate the potential to expand oilseeds, specifically soybeans,as an alternative commercialcrop to tobacco among Malawian farmers. A principal motivation for undertaking the study at the microeconomic level is to determine, in a theoretically consistent fashion, the type of policy and economic environment under which farmers begin to shift more of their scarce resources to oilseed production.The study aims to provide recommendations to a growing demand among policy makers and development partners for a greater diversification of exports and crop production systems of the majority smallholder farmers in Malawi. Using representative farm models, the study examinesthe potential for expanding production of soybeans among typical smallholder farming systems in Malawi. The results will help guide future policies and investments targeted at promoting greater crop diversification and incomes, in order to reduce poverty and malnutrition in Malawi. Given the amount of labor and land resources allocated to maize production for food security purposes, we also consider the policy challenges that emerge for crop diversification as a result

The distribution of power and household behavior

Wouterse, Fleur Stephanie
The distribution of power and household behavior Book PDF

Author : Wouterse, Fleur Stephanie
Publisher : Intl Food Policy Res Inst
Page : 28 pages
File Size : 53,9 Mb
Release : 2016-08-12
Category : Political Science
ISBN : 8210379456XXX

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The distribution of power and household behavior by Wouterse, Fleur Stephanie Pdf

Niger is a landlocked Sahelian country, two-thirds of which is in the Sahara desert. Although only one-eighth of the land considered arable, more than 90 percent of Niger’s labor force is employed in agriculture, which is predominantly subsistence oriented. Food security remains a major challenge in rural areas of Niger, and gender is a significant basis for the inequality among household members with respect to access to land. Access to land, which is a measure of the income-earning potential of an individual, is an important determinant of the distribution of bargaining power within the household. Because households may not act in a unitary manner when making decisions, the power of individuals within the household to exert their own preferences may determine welfare outcomes, such as spending on nutritious foods or healthcare. In this paper, we use new data for Niger and regression analyses to assess the importance of the intrahousehold distribution of power for the behavior of rural households. Our results reveal that men are significantly more empowered than women in rural households in Niger and that social protection programs such as water, sanitation, and hygiene (WASH) and food-for-training contribute significantly to the empowerment of women. Our findings also point to the validity of the collective approach to modeling household behavior, as the distribution of power was shown to affect household behavior. In particular, we found that an increase in power in favor of the adult female significantly increases expenditures on healthcare and reduces spending on vices (cigarettes and alcohol).