Frontier Market Transaction Costs and Diversfication

Author(s):  
Ben R. Marshall ◽  
Nhut H. Nguyen ◽  
Nuttawat Visaltanachoti
2012 ◽  
Vol 58 (No. 3) ◽  
pp. 135-146 ◽  
Author(s):  
D. Yang ◽  
Z. Liu

 Under the background of the Chinese Household Contract Responsibility System (HCRS), farmers have to pay higher transaction costs and encounter a huge trading risk if they engage in agricultural production only through the market transaction. Since the special properties of agricultural production limit the formation and development of agricultural enterprises, farmer cooperative economy organizations with the main functional characteristics of transaction coordination begin to flourish. By building a new classical economics model, this paper demonstrates the theoretical assertion that the generation of a farmer cooperative economy organization is accompanied by the evolution of the division of labour, the improvement of farmers’ effectiveness and the development of agricultural specialization. Furthermore, this paper does an empirical analysis with the micro-survey data to verify this theoretical assertion. Therefore, this article effectively explains the generation condition of a farmer cooperative economy organization and the internal mechanism of how it promotes the development of agricultural specialization. So this paper provides a strong theoretical and practical evidence for the development of a farmer cooperative economy organization and agricultural specialization.    


2000 ◽  
Vol 32 (2) ◽  
pp. 235-248 ◽  
Author(s):  
Kimberly A. Zeuli ◽  
Jerry R. Skees

AbstractWhile a carbon market offers substantial opportunities for US agriculture, regional differences in such a market are often ignored. This paper focuses on the advantages and challenges for agriculture in the South. The potential of two promising options are analyzed: conversion from cropland to forests and greater use of conservation tillage. It is argued that the right institutional arrangements can overcome three fundamental challenges to an efficient carbon market: transaction costs, risk, and perverse incentives. Some examples are given, such as the use of a farmer-owned organization and the provision of land use and carbon information by the government.


2020 ◽  
Vol 56 (4) ◽  
Author(s):  
Philip Womble ◽  
W. Michael Hanemann

1983 ◽  
Vol 1 (3) ◽  
pp. 305-322 ◽  
Author(s):  
G L Clark

Incomplete information regarding the location of job offers, their contractual conditions, and tenure prospects typifies US labor markets. Crises of spatial coordination and the allocation of labor demand and supply, amongst other issues, are argued to result from such uncertainties. Assisted-mobility and spatial job-matching programs have been promoted as solutions to problems of inadequate information. These programs, however, ignore the fact that uncertainty is part of any rule-oriented exchange process. These programs also neglect the power relations between employers and employees which structure and sustain labor-market transaction costs. The crucial issue is the distribution of transaction costs between contracting parties. These principles are applied to a recent legal case in Michigan involving interregional labor migration.


1999 ◽  
Vol 7 (2) ◽  
pp. 103-127 ◽  
Author(s):  
Catherine Bonser-Neal ◽  
David Linnan ◽  
Robert Neal

2017 ◽  
Author(s):  
◽  
Bryce Nicholas Bock

Studies in crop byproduct literature have looked more at the nutrient impacts, rather than analytical cost implications of crop byproducts in livestock feed rations. Thin market studies stated the lack of product volume and player count in a market leads to transaction costs such as low market information, which leads to poor liquidity and inaccurate price discovery. This study compares the byproduct markets of dried distillers grains with solubles (DDGS), corn gluten feed (CGF), wheat middlings, soybean hulls, and rice bran, and the more mainstream feed options of corn and soybean meal (SBM). Through a series of interview responses, Chebyshev's inequality calculations, and regression work, this thesis addresses questions on crop byproduct market transaction costs, market size, contracting habits, and price influences. The thesis findings indicate that as markets thin, contracting frequency and substitute product purchasing increase, with byproduct prices shaped by the prices of corn, soybean meal, and substitute byproduct feed ingredients. In addition, this thesis finds that efficient handling and information technologies most effectively manage the transaction costs stemming from critical nutrient, transportation, storage, consistency, and compatibility issues in crop byproduct transactions.


2018 ◽  
Vol 5 (2) ◽  
Author(s):  
Ning Wang

Abstract Ronald Coase was a founding father of modern law and economics. Yet, Coase distanced himself from the economic analysis of law, which today dominates the law and economics scholarship, and proposed an alternative research program, which is referred to here as “law and the economy”. As market transaction presumes the delineation of rights, which are primarily defined and enforced by law, law obviously anchors the foundation of a market economy. Moreover, changes in the legal system are a main source of institutional change that reassigns rights and redraws constraints under which rights are exercised, thus fundamentally affecting transaction costs and how the economy works. “Law and the economy” recognizes the law as an integral part of the economy and calls for the study of the economic impact of law.


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