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Needs, Modes and Efficiency of Economic Organizations and Public Interventions in Agriculture

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  • Bachev, Hrabrin

Abstract

There has been a fundamental development in theory and understanding of market, private, collective and public organizations in recent years. This paper incorporates achievements of the interdisciplinary New Institutional and Transaction Costs Economics (combining Economics, Organization, Law, Sociology, Behavioral and Political Sciences) and suggests a framework for assessing the needs and efficiency of economic organizations and public interventions in agriculture. Our new approach includes: study of farm and other agrarian organizations as a governing rather than production structure; assessment of comparative efficiency of alternative market, contract, internal, and hybrid modes of governance; analysis of level of transaction costs and their institutional (distribution and enforcement of de-facto rights between individuals, groups, organizations), behavioral (agents preferences, ability, bounded rationality, tendency for opportunism, risk aversion, trust), dimensional (frequency, uncertainty, assets specificity, and appropriability of transactions), natural, and technological factors; determination of effective horizontal and vertical boundaries of farms and other agrarian organizations; specification of the economic role of government and the needs for public interventions in agrarian sector; assessment of comparative of alternative forms of public involvement in agrarian sector (partnership, regulation, taxation, assistance, provision, in house organization, fundamental property rights modernization). The paper provides new powerful tools for understanding the agrarian organizations and their efficiency, and for improvement of public policies, collective actions, farming and business strategies, and academic analyses in that important sector of social life.

Suggested Citation

  • Bachev, Hrabrin, 2010. "Needs, Modes and Efficiency of Economic Organizations and Public Interventions in Agriculture," MPRA Paper 25979, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:25979
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    References listed on IDEAS

    as
    1. Dahlman, Carl J, 1979. "The Problem of Externality," Journal of Law and Economics, University of Chicago Press, vol. 22(1), pages 141-162, April.
    2. Hrabrin Bachev, 2005. "Efficiecy Of Agrarian Organisations," Microeconomics 0511002, University Library of Munich, Germany.
    3. Erik Mathijs & Johan F. M. Swinnen, 2001. "Production Organization And Efficiency During Transition: An Empirical Analysis Of East German Agriculture," The Review of Economics and Statistics, MIT Press, vol. 83(1), pages 100-107, February.
    4. Bachev, Hrabrin, 2008. "Governing of agrarian innovations," MPRA Paper 7784, University Library of Munich, Germany.
    5. Hrabrin Bachev, 2009. "Mechanisms Of Governance Of Sustainble Development," Journal of Applied Economic Sciences, Spiru Haret University, Faculty of Financial Management and Accounting Craiova, vol. 4(2(8)_ Sum).
    6. Gorton, Matthew & Davidova, Sophia, 2004. "Farm productivity and efficiency in the CEE applicant countries: a synthesis of results," Agricultural Economics, Blackwell, vol. 30(1), pages 1-16, January.
    7. Thomas L. Sporleder, 1992. "Managerial Economics of Vertically Coordinated Agricultural Firms," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(5), pages 1226-1231.
    8. Eggertsson,Thrainn, 1990. "Economic Behavior and Institutions," Cambridge Books, Cambridge University Press, number 9780521348911.
    9. Bachev, Hrabrin, 2008. "Governing of agrarian sustainability," MPRA Paper 7772, University Library of Munich, Germany.
    10. Bachev, Hrabrin, 2010. "Governance of agrarian sustainability," MPRA Paper 99867, University Library of Munich, Germany.
    11. Demsetz, Harold, 1969. "Information and Efficiency: Another Viewpoint," Journal of Law and Economics, University of Chicago Press, vol. 12(1), pages 1-22, April.
    12. Bachev, Hrabrin & Labonne, Michel, 2000. "About the organisation of agrarian innovations," MPRA Paper 99575, University Library of Munich, Germany.
    13. William M. Dugger, 1996. "The Mechanisms of Governance," Journal of Economic Issues, Taylor & Francis Journals, vol. 30(4), pages 1212-1216, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
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    Cited by:

    1. Bachev, Hrabrin, 2017. "Sustainability of farms of natural persons in Bulgaria," MPRA Paper 76899, University Library of Munich, Germany.
    2. Hrabrin Ianouchev BACHEV, 2016. "What is Sustainability of Farms?," Journal of Economic and Social Thought, KSP Journals, vol. 3(1), pages 35-48, March.
    3. Bachev, Hrabrin & Ivanov, Bozhidar, 2023. "What is agrarian governance and how to assess how good it is?," MPRA Paper 117536, University Library of Munich, Germany.
    4. Hrabrin Ianouchev BACHEV, 2016. "An Approach to Assess Sustainability of Agricultural Farms," Turkish Economic Review, KSP Journals, vol. 3(1), pages 28-53, March.
    5. Bachev, Hrabrin & Ivanov, Bodjidar & Toteva, Dessislava, 2019. "Sustainability of agro-ecosystems in Bulgaria," MPRA Paper 93320, University Library of Munich, Germany.
    6. Anna Szczepańska-Przekota, 2023. "Are Small Agricultural Markets Recipients of World Prices? The Case of Poland," Agriculture, MDPI, vol. 13(6), pages 1-16, June.
    7. Bachev, Hrabrin, 2023. "Agrarian governance – who, what, why, how, where, when, price?," MPRA Paper 117189, University Library of Munich, Germany.
    8. Bachev, Hrabrin, 2012. "Risk Management in Agri-food Chain," MPRA Paper 39594, University Library of Munich, Germany.
    9. Bachev, Hrabrin, 2012. "Governing Agrarian Risks," MPRA Paper 41651, University Library of Munich, Germany.
    10. Hrabrin Bachev, 2013. "Risk Management in the Agri-food Sector," Contemporary Economics, University of Economics and Human Sciences in Warsaw., vol. 7(1), March.
    11. Hrabrin Bachev, 2017. "Supply Chain Risk Management – Agri-Food Implications," Noble International Journal of Business and Management Research, Noble Academic Publsiher, vol. 1(1), pages 10-30, January.
    12. Hrabrin Bachev, 2005. "Assessment Of Sustainability Of Bulgarian Farms," Development and Comp Systems 0511007, University Library of Munich, Germany.
    13. Bachev, Hrabrin, 2023. "Comparative and absolute competitiveness of governing structures in Bulgarian farming," MPRA Paper 118687, University Library of Munich, Germany.
    14. Bachev, Hrabrin, 2023. "Аграрното Управление - Опит За Разбиране И Икономическо Анализиране [Agrarian governance - attempt to understand and economic analysis]," MPRA Paper 118350, University Library of Munich, Germany.
    15. Hrabrin I. BACHEV, 2016. "Unpacking Agrarian and Agri-business Contracts," Journal of Economics Library, KSP Journals, vol. 3(3), pages 524-547, September.
    16. Bachev, Hrabrin, 2023. "Разбиране, Оценка И Фактори На Конкурентоспособността На Фермерските Управленчески Структури - Български Пример [Understanding, Assessment, and Factors of Competitiveness of Farming Governing Struc," MPRA Paper 116074, University Library of Munich, Germany.
    17. Bachev, Hrabrin, 2019. "Multilevel assessment of agrarian sustainability in Bulgaria," MPRA Paper 92752, University Library of Munich, Germany.
    18. Bachev, Hrabrin & Ivanov, Bodjidar & Toteva, Dessislava, 2019. "Sustainability of agricultural sub-sectors in Bulgaria," MPRA Paper 93323, University Library of Munich, Germany.
    19. Hrabrin BACHEV, 2018. "The Impact Of Market, Private, Collective And Hybrid Modes Of Governance On Agrarian Sustainability In Bulgaria," Economics 21, D. A. Tsenov Academy of Economics, Svishtov, Bulgaria, issue 2 Year 20, pages 124-165.
    20. Bachev, Hrabrin, 2023. "About governance, production, and territorial dimensions of farm competitiveness – the case of Bulgaria," MPRA Paper 118035, University Library of Munich, Germany.
    21. Hrabrin Bachev, 2023. "Competitiveness of Farming Structures in Bulgaria," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 6, pages 108-131.
    22. Bachev, Hrabrin, 2017. "Governance, economic, social and environmental sustainability of farms of different luridical type in Bulgaria," MPRA Paper 76654, University Library of Munich, Germany.

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    More about this item

    Keywords

    market; private and public modes of governance; efficiency of farms and agrarian organizations; agricultural policies; transaction costs; New Institutional Economics;
    All these keywords.

    JEL classification:

    • D86 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Economics of Contract Law
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • H44 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Goods: Mixed Markets
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • L38 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Public Policy
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure

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