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Risk management in traditional agriculture: intercropping in Italian wine production

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  • Federico, Giovanni
  • Martinelli Lasheras, Pablo

Abstract

This paper investigates the causes of the traditional practice of intercropping &- i.e., of scattering vines across fields rather than concentrating them in specialized vineyards. We interpret it as a risk management strategy based on spatial diversification, which entailed transportation costs. We test our model with data for 1930s Italy, where intercropping was widely but unevenly diffused. We show that its adoption was positively related to the pattern of scattered dwellings which dated back to the late Middle Ages and reduced transportation costs to individual plots.

Suggested Citation

  • Federico, Giovanni & Martinelli Lasheras, Pablo, 2020. "Risk management in traditional agriculture: intercropping in Italian wine production," IFCS - Working Papers in Economic History.WH 30249, Universidad Carlos III de Madrid. Instituto Figuerola.
    • Handle: RePEc:cte:whrepe:30249
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    Keywords

    Intercropping;

    JEL classification:

    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
    • N63 - Economic History - - Manufacturing and Construction - - - Europe: Pre-1913
    • N64 - Economic History - - Manufacturing and Construction - - - Europe: 1913-
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns

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