Skip to main content
eScholarship
Open Access Publications from the University of California

About

The Department of Agricultural and Resource Economics at UC Davis is recognized nationally and internationally for the quality of its faculty and for the strength of its undergraduate and graduate programs. Eight emeritus faculty are Fellows of the American Agricultural Economics Association (AAEA), and Departmental faculty and graduate students have received more than 38 awards for outstanding research from the AAEA and Western AEA. The Department administers a popular undergraduate major in Agricultural and Managerial Economics (AME). The program was ranked 8th nationally among peer programs in the most recent Gourman Report. The graduate program in Agricultural and Resource Economics emphasizes state-of-the-art training in economic theory and quantitative methods, with specialty fields in agricultural marketing, econometrics, economic development, natural resource economics, production economics, and international policy and trade. The graduate program has consistently ranked as the top or among the top programs in the world in terms of quality of graduate education.

Department of Agricultural and Resource Economics

There are 230 publications in this collection, published between 1982 and 2020.
Agriculture and Resource Economics Working Papers (93)

Non-pecuniary Work Incentive and Labor Supply

Recognizing that people value employment not only to earn income to satisfy their consumption needs, but also as a means to gain socio-psychological (nonpecuniary) benefits, we show that once nonpecuniary work incentives are incorporated into standard labor supply theory, (i) the wage rate under-estimates (over-estimates) the true value of nonwork/leisure time when work has nonpecuniary benefits (costs), (ii) nonpecuniary benefits can be a substitute for monetary wages as work incentives,(iii) at very low wage rates, work can become a net wource of utiltiy, and (iv) the shape of labor supply curve differs from standard theory. We also indentify conditions under which a greater nonpecuniary work incentive generates a larger individual labor supply, and examine the effects of non-wage income on labor supply both for paid and voluntary work.

The Evolution of China's Rural Labor Markets during the Reforms

This paper contributes to the assessment of China's rural labor markets, while paying attention to whether these markets are developing in a manner conducive to the nation's modernization. According to our household survey, we find that the rapid increase in off-farm activity; has become dominated by young and better educated workers; expanded most rapidly in areas that are relatively well-off; and begun to draw workers from portions of the population, such as women, that earlier had been excluded from participation.

A Primal-Dual Estimator of Production and Cost Functions Within an Errors-in-Variables Context

In 1944, Marschak and Andrews published a seminal paper on how to obtain consistent estimates of a production technology. The original formulation of the econometric model regarded the joint estimation of the production function together with the first-order necessary conditions for profit-maximizing behavior. In the seventies, with the advent of econometric duality, the preference seemed to have shifted to a dual approach. Recently, however, Mundlak resurrected the primal-versus-dual debate with a provocative paper titled "Production Function Estimation: Reviving the Primal." In that paper, the author asserts that the dual estimator, unlike the primal approach, is not efficient because it fails to utilize all the available information. In this paper we propose that efficient estimates of the production technology can be obtained only by jointly estimating all the relevant primal and dual relations. Thus, the primal approach of Mundlak and the dual approach of McElroy become special cases of the general specification. In the process of putting to rest the primal-versus-dual debate, we tackle also the nonlinear errors-in-variables problem when all the variables are measured with error. A Monte Carlo analysis of this problem indicates that the proposed estimator is robust to misspecifications of the ratio between error variances.

90 more worksshow all
Open Access Policy Deposits (169)

ARE Update Volume 19, Number 3

1. Biofuel Policies: Robbing Peter to Pay Paul

Policies aimed at reducing carbon emissions from transportation have hit major obstacles in the past few years. In effect, these policies take money from petroleum producers and give it to renewable fuel producers, creating heated political and legal battles but little effect on consumers.

2. Which California Foods You Consume Makes Little Impact on Drought-Relevant Water Usage

To be relevant to California’s drought, discussions of water used to produce food items should focus on the irrigation water relevant to production in California. By that measure, drought-relevant water used to produce livestock products such as beef and milk is moderate compared to crop products such as wine and broccoli.

3. Europe's Migration Crisis

The European Union’s 28 member nations received 1.2 million applications from asylum seekers in 2015. One reason for the upsurge in asylum applicants is that German Chancellor Angela Merkel in August 2015 announced that Syrians could apply for asylum in Germany even if they passed through safe countries en route. The challenges of integrating asylum seekers are becoming clearer, prompting talk of reducing the influx, reforming EU institutions, and integrating migrants.

Non-pecuniary Work Incentive and Labor Supply

Recognizing that people value employment not only to earn income to satisfy their consumption needs, but also as a means to gain socio-psychological (nonpecuniary) benefits, we show that once nonpecuniary work incentives are incorporated into standard labor supply theory, (i) the wage rate under-estimates (over-estimates) the true value of nonwork/leisure time when work has nonpecuniary benefits (costs), (ii) nonpecuniary benefits can be a substitute for monetary wages as work incentives,(iii) at very low wage rates, work can become a net wource of utiltiy, and (iv) the shape of labor supply curve differs from standard theory. We also indentify conditions under which a greater nonpecuniary work incentive generates a larger individual labor supply, and examine the effects of non-wage income on labor supply both for paid and voluntary work.

ARE Update

1. California's egg regulations became effective January 1, 2015. Immediately, egg prices in California were nearly double those in the rest of the U.S. as producers worked through an adjustment to new regulations. The price premium for eggs in California has narrowed but is likely to remain well above prices in the rest of the U.S. due to the continued regulatory uncertainty and higher costs associated with complying with the regulations.

2. Food and beverage processing is the third largest manufacturing sector in California. In 2012 California's food and beverage processing sector contributed $82 billion in value added to the California economy, 760,000 full- and part-time jobs, $10.5 billion in federal tax revenues, and $8.2 billion in state and local tax revenues.

3. The West Coast port delays that began in the summer of 2014 and lasted until near the end of February 2015 cost California agriculture dearly. As the delays extended into the winter, citrus exports were hit while exports of storable crops to Asia also slowed. The story for wine is more complex, because California both imports and exports wine through West Coast ports.

166 more worksshow all