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

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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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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  1. Gorton, Matthew & Davidova, Sophia, 2004. "Farm productivity and efficiency in the CEE applicant countries: a synthesis of results," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 30(1), January.
  2. Eggertsson,Thrainn, 1990. "Economic Behavior and Institutions," Cambridge Books, Cambridge University Press, number 9780521348911.
  3. Dahlman, Carl J, 1979. "The Problem of Externality," Journal of Law and Economics, University of Chicago Press, vol. 22(1), pages 141-62, April.
  4. Demsetz, Harold, 1969. "Information and Efficiency: Another Viewpoint," Journal of Law and Economics, University of Chicago Press, vol. 12(1), pages 1-22, April.
  5. Bachev, Hrabrin, 2008. "Governing of agrarian sustainability," MPRA Paper 7772, University Library of Munich, Germany.
  6. Bachev, Hrabrin, 2008. "Governing of agrarian innovations," MPRA Paper 7784, University Library of Munich, Germany.
  7. Hrabrin Bachev, 2005. "Efficiecy Of Agrarian Organisations," Microeconomics 0511002, EconWPA.
  8. Bachev, Hrabrin, 2009. "Mechanisms of Governance of Sustainable Development," MPRA Paper 14947, University Library of Munich, Germany.
  9. 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.
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