9

This is a common area of study in Development Economics. There is for example the Dual-sector model, first developed in 1954. It is very well explained in the link provided, but basically: [the] agricultural sector is typically characterized by low wages, an abundance of labour, and low productivity through a labour-intensive production process. In contrast,...


8

It is worth noting that OP's original question before I edited it asked, "why would economists lie to us?" This already leaves a poor taste in my mouth; such a question is loaded enough as it is, only good for picking fights. The author stated at the bottom of the Progressive Dairy article is a lawyer, not an economist, and seems to be the basis for some of ...


6

A schematic picture is as follows: Industrialization also means industrialization of Agriculture. This kills land-related jobs in the sector while at the same time it increases output. Inceased output requires preservation since it can't be immediately consumed as fresh product. So jobs are created in the "packaging" business-end of Agriculture, which ...


6

You are right to be sceptical of this statement. Let's take it step by step. Will developments in biotechnology increase world food production? Almost certainly yes, provided other things are equal. But the reality is that other things are not equal. Climate change is likely, other things being equal to reduce agricultural productivity in some parts of ...


5

To complement WorldGov's great points, there are milk subsidies provided in Algeria, which might have been abused for re-sale in other countries: [These measures of “market saturation” will be accompanied by] “the firm application of the law against all the authors of diversion of milk powder heavily subsidised by the state for the benefit of consumers.” ...


5

Four-fifths of Algeria is just desert --which leaves no room for agriculture. The Algerian economy is mostly powered just by the oil industry, which contribute about ~70% of government revenues. Oil and oil related products constitute more than 80% of Algeria's exports. For example, Turkey has twice the population of Algeria but it has more than 7.5 times ...


4

MANGOES: MARKET STEADY. flats 1 layer [[cargo type]] HT [[Haitii]] Francis [[variety]] 9s [[9 fruits in 1 layer flat]] 11.00 [[price for 9 fruits]] 10s [[10 fruits in 1 layer flat]] 12.00 [[price for 10 fruits]] MX [[Mexico]] Keitt [[Variety]] 7s [[count]] 5.00-6.00 [[price]] few 6.50 [[a few at a different price]] ...etc... 25 lb cartons [[cargo type]] DR [[...


4

Aside from the economic arguments, a big difference was the amount of autonomy for the workers. Consider agriculture and similar rural employment (as servants etc) in the UK, even as recently as 1900. The status of agricultural workers in society was little changed from a medieval serf. They lived in housing provided by their employer. Their employer ...


4

Making such sweeping statements about biotechnology in general is impossible if you ask me. Even when limiting oneself to agrobiotechnology it is impossible to make such statements because there are so many different crops that have been developed. It is true that first-generation biotech crops are mainly developed to increase productivity, for example to ...


4

Suppose that, initially, crop A is the most profitable crop that can be grown on a particular farm, yielding an average annual profit of \$X, profit being measured after deduction of all costs (including a normal return to the farmer) other than the cost of the property (ie the land). In a competitive property market, the capital value of the property might ...


4

Cost of production is somewhat difficult to pin down, since much of that information is private. However, consumer costs are widely available: https://www.ncbi.nlm.nih.gov/pmc/articles/PMC2954450/ I have managed to find a comparison of beef, pork, dairy, poultry, and eggs to plants in terms of protein, and broadly beef is the most inefficient of those (See ...


3

The main argument for food self-sufficiency---endorsed by Bush in the quote you have---is that being dependant on other countries for food reduces the power a country can hope to wield on an international level. However valid or invalid, this is an argument that an economist would be very unlikely to make, as economists tend to focus their work exclusively ...


3

Have there been any economists who have argued in favor of national food self-sufficiency and what are some of their arguments? I am not knowledgeable of literature in that direction, but some of the arguments in the aforementioned excerpts are flawed. Simply put, self-sufficiency does not preclude free trade. The excerpt of The Economist certainly ...


3

The true answer is of course it depends. What it depends on is how you define sustainability. In a natural resources context, with weak sustainability, soil quality is a capital asset, just as a fish stock, a forest or an oil field. Given that we have manure and fertilizer I would argue that it is a renewable resource (until we run out of phosphate perhaps ...


3

In Keynes's Treatise on Money he argued that the phenomenon you describe, known as "normal backwardation", is due to the fact that certain commodities producers hedge their price risk (importantly, they hedge their risk much more than consumers) by selling futures. The intuition for why the producer does this is that it allows the producer to lock in the ...


3

Most global commodities are quoted (priced) in US dollars. The more valuable a dollar becomes relative to other currencies, all other things equal, the more commodity prices have to fall to equilibrate. Imagine everything was priced in corn and people start to value corn more or the amount of corn falls. Either way, all the prices in terms of corn (e.g. ears ...


3

A priori this is difficult to say without any empirical experiment but it is unlikely due to: Price floors do not necessarily lead to more competition on quality. Theoretical models do show that price floors can (depending on parameters) lead to an increase in quality (Bilotkach, 2012 and sources cited therein), but they can also just result in intensifying ...


2

The governments want to ensure that there is enough food for their people even if international food trade breaks down (for example due to trade war, war, or famine). A secondary objective is that they want low food prices to make food affordable to people with low/medium income. Politicians that drive up food prices for the masses are less likely to get ...


2

Markets are extremely poor at pricing events that have very low probability and catastrophic impacts. In part because we're very bad at estimating low-probability events: by definition, they're rare. And in part because the catastrophic impacts fall on pretty much all the population, so any single purchase has very widely-spread potential negative ...


2

Here there is a very good summary of existing information. Key variables are daily intake of calories/proteins/fat per person (so it is not so much about tons of food but their nutrient content). An example: Notice that most of the data is taken from the FAO, which is available online here.


2

Food is the most necessary thing in life. It is not uncommon that undeveloped societies can have as large as 80% of the economy in agriculture. One of the first steps to an industrialized society therefore becomes to make agriculture more efficient. To produce more food per worker. Why? Because otherwise no matter how efficient technology you have outside of ...


2

If a biotechnology advance lowers the production price of corn from 3.50 dollars a bushel to 3 dollars, then farmers who do not have access to this technology now must sell at 3 dollars without enjoying any of the productivity gain, a reduction in income of 50 cents a bushel. In considering the potential truth in the statement in the textbook (with respect ...


1

I recognize that I cannot prove a negative and claim "no economists want this", but I will caution that there will be few economists with an interest in food independence (being a food autarky) because it is fundamentally opposed by well-accepted economic theory, the Ricardian Trade model. Take a look at the Ricardian Trade model. Here's a link to a nice ...


1

The first thing that comes to mind is food security. China has a large population to feed and does not want to depend on foreign nations for its food. A (speculative) second reason may be prevention of domestic unrest. The largest share of China's population still lives in rural areas, and by supporting farmers they may silence protests. A recent ...


1

Reducing food wastage should in theory reduce demand for food Let's examine this claim in a simple static framework. Assume preferences over two goods like $$U(x_1,x_2) = a\ln x_1 + (1-a)\ln x_2 \tag{1}$$ where $x_1$ is food and subject to waste, while $x_2$ is not subject to waste. Now, the quantity in the utility function is not the quantity purchased ...


1

The approach appears to be static. An intertemporal approach would recognize that part of the period's forgone production would have been used for investment, augmenting the capital base. So we also lose future consumption. But let's skip that. In order to categorize what the country will lose (and who is going to lose it) I decompose output into certain ...


1

You can examine the components of Global Food Security Index. If I'm not mistaken, you can actually download the data free online from the same website. It covers a large set of countries globally.


1

Just thinking out loud here, not saying this is correct others may have a better idea. I'm going to roll with this assumption that you are using best econometric practices so that you trust your estimates and want to take action based on them. (1) The partial effect of going from $I=0$ to $I=1$ would be $E(Y_1|I=1,N=\overline{N})-E(Y_1|I=0,N=\overline{N})$ ...


1

It made me think about Lewis Model. In this model, the main idea is that if the agricultural sector is highly productive, there will be a transition of labor from agricultural sector to industrial sector, which will probably produce more value added products. With maintaining at least the same quantity of subsistance good, the industrial sector will ...


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