Climate Change and Crop Yield Distribution: Some New Evidence From Panel Data Models

This study examines the impact of climate on the yields of seven major crops in Taiwan based on pooled panel data for 15 prefectures over the 1977-1996 period. Unit-root tests and maximum likelihood methods involving a panel data model are explored to obtain reliable estimates. The results suggest that climate has different impacts on different crops and a gradual increase in crop yield variation is expected as global warming prevails. Policy measures to counteract yield variability should therefore be carefully evaluated to protect farmers from exposure to these long-lasting and increasingly climate-related risks.Yield response, Climate change, Panel data, Unit-root test

Modeling Flood Perils and Flood Insurance Program in Taiwan

Taiwan had approximately 3,000 buildings damaged by floods with an economic loss of NT$12.8 billion annually, a figure 4.5 times more than economic losses due to fire damages. Many insurers become extremely cautious when underwriting their flood policies for people living in areas that are frequently struck by floods. The rising damages also trigger the demand for a mandatory national flood insurance program. This paper describes the development of an integrated flood risk assessment model for Taiwan which contains of a hazard, vulnerability and financial analysis module. We take the perspective that the mandatory program will be provided to fire policyholders as part of building and content insurance to mitigate the financial losses. The issue of a long-term balance between fund accumulations and its claim payouts will be addressed along with policy recommendations based on the modeling results.Risk Assessment, Typhoon, Flood Insurance, Financial Analysis, Resource /Energy Economics and Policy, Risk and Uncertainty,

Is Contract Farming More Profitable and Efficient Than Non-Contract Farming-A Survey Study of Rice Farms In Taiwan

Trade liberalization and globalization has modernized the food retail sector in Taiwan, affecting consumers, producers and trade patterns. These changes have placed significant pressures on farmers and processors including more stringent quality control and product varieties. The government has launched a rice production-marketing contract program in 2005 to assist rice farmers and the agro-business sector to work together as partners. The minimum scale for each contract is 50 hectares of adjacent rice paddies with 50 participants including rice farmers, seedling providers, millers and marketing agents. In order to evaluate the outcome of this program, a survey is conducted in the summer of 2005 after the first (spring) crop is harvested. Information of price and value of output and major variable and fixed inputs are collected along with characteristics of the farmers and farms. The survey results show that the average revenue of a contract farm is about 11 percent higher than an average non-contract farm. The per hectare cost of production in a contract farm is about 13 percent lower and as a result the average profit margin under contract is more than 50 percent above those without contract. A swtiching regression profit frontier model is adopted to further investigate their efficiency performance. The result indicates that an average contract farms is 20 percent more efficient than an average non-contract farm in a comparable operating environment. The result also suggests that although contract farming has potential to improve the profit of smallholders, it is not a sufficient condition for such improvement.Land Economics/Use,

POTENTIAL BENEFITS OF RICE VARIETY AND WATER MANAGEMENT IMPROVEMENTS IN THE TEXAS GULF COAST

The welfare benefits from potential rice yield-enhancing and water-saving research programs and their distributional implications under alternative farm program provisions are compared. This is done in an ex ante surplus maximization framework by using a multiregional, price endogenous mathematical programming model of U.S. agriculture. The simulation results indicate that government price support policies have profound impacts on the distribution of research benefits and distort interest group incentives and rankings for allocation of resources to research.Agricultural and Food Policy, Research and Development/Tech Change/Emerging Technologies,

Efficiency and Returns to Scale Measurements with Shared Inputs in Multi-Activity Data Envelopment Analysis: An Application to Farmers' Organizations in Taiwan

This paper addresses the question how team production promotes efficiency of a firm when some inputs can be rewarded on the basis of outputs but some cannot because they are shared among outputs and non-separable. A multi-activity DEA model with variable returns to scale is proposed to provide information on the efficiency performance for organizations with inputs shared among several closely related activities. The model is applied to study the case of 279 farmers' associations in Taiwan. The result suggests that it is important to improve the efficiency of the non-profit oriented activities to improve their overall performances. Three out of four departments of TFAs can gain from economies of scale through expansion, while the remaining one gains through contraction. Thus, policies promoting structural adjustment and consolidations of TFAs would not be inconsistent with public interests.multi-activity DEA, shared inputs, efficiency measure, directional distance function, Productivity Analysis,

ON THE EQUIVALENCE OF IMPORT TARIFF AND QUOTA: THE CASE OF RICE IMPORT IN TAIWAN

This paper extends the existing theory on the equivalence of import tariff and quota. If the equivalence is defined on the domestic price level (weak equivalence), then either the zero conjectural variation for domestic country or a perfectly competitive market will be sufficient to support this equivalence. If the equivalence is defined both on the same domestic price level as well as tariff rate (strong equivalence), then the conditions are that either domestic country acts as a Cournot competitor and foreign country is a price taker, or both domestic and foreign country are price takers. An empirical spatial-equilibrium trade model is constructed to simulate the impacts of import tariff and quota. Using Taiwan¡¦s rice import as an example, the empirical results show that if Taiwan switches from the quota system to tariff system, the domestic rice price as well as total social welfare can be increased given the same import volume.International Relations/Trade,