HANDBOOK OF AGRICULTURAL ECONOMICS

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1 HANDBOOK OF AGRICULTURAL ECONOMICS VOLUME Edited by PRABHU PINGALI Deputy Director, Agriculture Development, Bill and Melinda Gates Foundation, Seattle, WA, USA ROBERT EVENSON Professor of Economics, Yale University, New Haven, CT, USA * v'.v-..-ajlmvjjl... Amsterdam Boston Heidelberg London New York Oxford ELSEVIER Paris San Diego San Francisco Singapore Sydney Tokyo

Professor of Economics, Yale University, New Haven, CT, USA * v'.v-..-ajlmvjjl.

2 VOLUME 1A PART 1 CHAPTER 1 CHAPTER 2 CHAPTER 3 CHAPTER 4 CHAPTER 5 CHAPTER 6 CHAPTER 7 CHAPTER 8 CHAPTER 9 AGRICULTURAL PRODUCTION v_ Production and Supply Yair Mundlak Uncertainty, Risk Aversion, and Risk Management for Agricultural Producers Giancarlo Moschini and David A. Hennessy Expectations, Information and Dynamics Marc Nerlove and David A. Bessler ^ The Agricultural Innovation Process: Research and Technology Adoption in a Changing Agricultural Sector David Sunding and David Zilberman Structural Change in Agricultural Production: Economics, Technology and Policy Jean-Paul Chavas Land Institutions and Land Markets Klaus Deininger and Gershon Feder Human Capital: Education and Agriculture Wallace E. Huffman Women's Roles in the Agricultural Household: Bargaining and Human Capital Investments T. Paul Schultz Human Capital: Migration and Rural Population Change J. Edward Taylor and Philip L. Martin VII

Bessler ^ The Agricultural Innovation Process: Research and Technology Adoption in a Changing Agricultural Sector David Sunding and David Zilberman Structural Change in Agricultural Production:

3 Viii CONTENTS OF THE HANDBOOK CHAPTER 10 Agricultural Finance: Credit, Credit Constraints, and Consequences Peter J. Barry and Lindon J. Robison CHAPTER 11 Economic Impacts of Agricultural Research and Extension Robert E. Evenson CHAPTER 12 The Agricultural Producer: Theory and Statistical Measurement Richard E. Just and Rulon D. Pope ~~~ VOLUME IB PART 2 MARKETING, DISTRIBUTION AND CONSUMERS CHAPTER 13 Commodity Futures and Options Jeffrey C. Williams CHAPTER 14 Storage and Price Stabilization Brian Wright CHAPTER 15 Food Processing and Distribution: An Industrial Organization Approach Richard J. Sexton and Nathalie Lavoie CHAPTER 16 Marketing Margins: Empirical Analysis Michael K. Wohlgenant CHAPTER 17 Spatial Price Analysis Paul L Fackler and Barry K. Goodwin CHAPTER 18 Duality for the Household: Theory and Applications Jeffrey T. LaFrance CHAPTER 19 Economic Analysis of Food Safety John M. Antle CHAPTER 20 Marketing and Distribution: Theory and Statistical Measurement James Vercammen and Andrew Schmitz

Pope ~~~ VOLUME IB PART 2 MARKETING, DISTRIBUTION AND CONSUMERS CHAPTER 13 Commodity Futures and Options Jeffrey C.

4 CONTENTS OF THE HANDBOOK CHAPTER 21 Production and Marketing VOLUME 2A Rachael E. Goodhue and Gordon C. Rausser PART 3 AGRICULTURE, NATURAL RESOURCES AND THE ENVIRONMENT CHAPTER 22 The Economics of Agriculture in Developing Countries: The Role of the Environment Ramon Lopez CHAPTER 23 Agriculture and the Environment Erik Lichtenberg CHAPTER 24 Common-Pool Resources and Institutions: Toward a Revised Theory Elinor Ostrom CHAPTER 25 Agriculture and Ecosystem Services Geoffrey M. Heal and Arthur A. Small PART 4 AGRICULTURE IN THE MACROECONOMY CHAPTER 26 Applied General Equilibrium Analysis of Agricultural and Resource Policies Thomas W. Hertel CHAPTER 27 Agriculture and the Macroeconomy, with Emphasis on Developing Countries Maurice Schiff and Alberto Valdes CHAPTER 28 The Macroeconomics of Agriculture Pier Giorgio Ardeni and John Freebaim CHAPTER 29 Agriculture and Economic Development C. Peter Timmer CHAPTER 30 The Rural Sector in Transition Economies Karen Brooks and John Nash

the Environment Erik Lichtenberg CHAPTER 24 Common-Pool Resources and Institutions: Toward a Revised Theory Elinor Ostrom CHAPTER 25 Agriculture and Ecosystem Services Geoffrey M. Heal and Arthur A.

5 CONTENTS OF THE HANDBOOK CHAPTER 31 Rural Development and Rural Policy Alain De Janvry, Elisabeth Sadoulet and Rinku Murgai CHAPTER 32 Agriculture in the Macroeconomy: Theory and Measurement VOLUME 2B Philip Abbott and Alex McCalla PART 5 AGRICULTURAL AND FOOD POLICY CHAPTER 33 The Incidence of Agricultural Policy Julian M. Alston and Jennifer S. James CHAPTER 34 Information, Incentives, and the Design of Agricultural Policies Robert G. Chambers CHAPTER 35 Market Failures and Second-Best Analysis with a Focus on Nutrition, Credit, and Incomplete Markets Robert Innes CHAPTER 36 Political Economy of Agricultural Policy Harry De Gorter and Johan Swinnen CHAPTER 37 A Synthesis of Agricultural Trade Economics Larry S. Karp and Jeffrey M. Perloff CHAPTER 38 International Trade Policy and Negotiations Daniel A. Sumner and Stefan Tangermann CHAPTER 39 Public Policy: Its Many Analytical Dimensions Gordon C. Rausser and Rachael E. Goodhue CHAPTER 40 Food Security and Food Assistance Programs Christopher B. Barrett CHAPTER 41 Food Security and the World Food Situation R.C. Duncan

James CHAPTER 34 Information, Incentives, and the Design of Agricultural Policies Robert G.

6 CONTENTS OF THE HANDBOOK xi CHAPTER 42 Policy-Related Developments in Agricultural Economics: Synthesis of Handbook Volume 2 Bruce L. Gardner and D. Gale Johnson VOLUME 3 PART 1 INTRODUCTION OVERVIEW Robert E. Evenson and Prabhu Pingali l^ PART 2 HUMAN RESOURCES AND TECHNOLOGY MASTERY CHAPTER 43 Agriculture and Human Capital in Economic Growth: Farmers, Schooling and Nutrition Wallace E. Huffman and Peter F. Orazem CHAPTER 44 Agricultural Extension Jock R. Anderson and Gershon Feder PART 3 INVENTION AND INNOVATION CHAPTER 45 The Role of International Agricultural Research in Contributing to Global Food Security and Poverty Alleviation: The Case of the CGIAR Prabhu Pingali and Tim Kelley CHAPTER 46 Contributions of National Agricultural Research Systems to Crop Productivity Robert E. Evenson and Douglas Gollin CHAPTER 47 Livestock Productivity in Developing Countries: An Assessment Alejandro Nin, Simeon Ehui and Samuel Benin CHAPTER 48 Agricultural Innovation: Investments and Incentives Brian D. Wright, Philip G. Pardey, Carol Nottenburg and Bonwoo Koo CHAPTER 49 Private Agricultural Research Carl E. Pray, Keith 0. Fuglie and Daniel K.N. Johnson CHAPTER 50 Plant Biotechnology for Developing Countries Robert Herdt, Gary Toenniessen and John O'Toole

Evenson and Prabhu Pingali l^ PART 2 HUMAN RESOURCES AND TECHNOLOGY MASTERY CHAPTER 43 Agriculture and Human Capital in Economic Growth: Farmers, Schooling and Nutrition Wallace E.

7 xii CONTENTS OF THE HANDBOOK PART 4 MARKETS, INSTITUTIONS AND TRANSACTION COSTS CHAPTER 51 Efficiency and Equity Effects of Land Markets Keijiro Otsuka CHAPTER 52 Labor: Decisions, Contracts and Organization James Roumasset and Sang-Hyop Lee CHAPTER 53 Fertilizers and Other Farm v Chemicals Paul W. Heisey and George W. Norton CHAPTER 54 Agricultural Mechanization: Adoption Patterns and Economic Impact Prabhu Pingali CHAPTER 55 Transformation of Markets for Agricultural Output in Developing Countries Since 1950: How Has Thinking Changed? Thomas Reardon and C. Peter Timmer CHAPTER 56 Rural Financial Markets in Developing Countries Jonathan Conning and Christopher Udry PART 5 NATURAL RESOURCES CHAPTER 57 Soil Quality and Agricultural Development Pierre Crosson CHAPTER 58 The Economics of Water, Irrigation, and Development Karina Schoengold and David Zilberman CHAPTER 59 Land Use: Forest, Agriculture, and Biodiversity Competition Roger A. Sedjo and R. David Simpson CHAPTER 60 Past Climate Change Impacts on Agriculture Robert Mendelsohn

Norton CHAPTER 54 Agricultural Mechanization: Adoption Patterns and Economic Impact Prabhu Pingali CHAPTER 55 Transformation of Markets for Agricultural Output in Developing Countries Since 1950: How

for the Entire Organization

Enterprise Risk Management A Common Framework for the Entire Organization Philip E. J. Green ELSEVIER AMSTERDAM. BOSTON. HEIDELBERG. LONDON NEW YORK OXFORD. PARIS. SAN DIEGO SAN FRANCISCO. SINGAPORE. SYDNEY.