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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.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 25979.

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Date of creation: Oct 2010
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Handle: RePEc:pra:mprapa:25979

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Keywords: market; private and public modes of governance; efficiency of farms and agrarian organizations; agricultural policies; transaction costs; New Institutional Economics;

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References

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  1. Demsetz, Harold, 1969. "Information and Efficiency: Another Viewpoint," Journal of Law and Economics, University of Chicago Press, University of Chicago Press, vol. 12(1), pages 1-22, April.
  2. Gorton, Matthew & Davidova, Sophia, 2004. "Farm productivity and efficiency in the CEE applicant countries: a synthesis of results," Agricultural Economics, Blackwell, Blackwell, vol. 30(1), pages 1-16, January.
  3. Hrabrin Bachev, 2005. "Efficiecy Of Agrarian Organisations," Microeconomics, EconWPA 0511002, EconWPA.
  4. Dahlman, Carl J, 1979. "The Problem of Externality," Journal of Law and Economics, University of Chicago Press, University of Chicago Press, vol. 22(1), pages 141-62, April.
  5. Bachev, Hrabrin, 2008. "Governing of agrarian sustainability," MPRA Paper 7772, University Library of Munich, Germany.
  6. Hrabrin Bachev, 2009. "Mechanisms Of Governance Of Sustainble Development," Journal of Applied Economic Sciences, Spiru Haret University, Faculty of Financial Management and Accounting Craiova, Spiru Haret University, Faculty of Financial Management and Accounting Craiova, vol. 4(2(8)_ Sum).
  7. Bachev, Hrabrin, 2008. "Governing of agrarian innovations," MPRA Paper 7784, University Library of Munich, Germany.
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Cited by:
  1. Hrabrin Bachev, 2013. "Risk Management in the Agri-food Sector," Contemporary Economics, University of Finance and Management in Warsaw, University of Finance and Management in Warsaw, vol. 7(1), March.
  2. Bachev, Hrabrin, 2012. "Governing Agrarian Risks," MPRA Paper 41651, University Library of Munich, Germany.
  3. Bachev, Hrabrin, 2012. "Risk Management in Agri-food Chain," MPRA Paper 39594, University Library of Munich, Germany.

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