About the Efficiency of Input vs. Output Quotas

Output quotas are known to be more efficient than input quotas in transferring surplus from consumers to producers. Input quotas, by distorting the shadow prices of inputs, lead to inefficient production and generate larger deadweight losses, for a given amount of surplus transferred. Yet, input quotas have been a ubiquitous tool in agricultural policy. Practicality considerations, as well as the difficulty to control outputs that heavily depend on stochastic weather conditions, are arguments that help understand why policy makers may favor input quotas over output quotas. In this paper, we offer an additional explanation that rests on efficiency considerations. Assuming that the regulator only has limited knowledge about the market fundamentals (supply and demand elasticities, among others), seeks to transfer at least a given amount of surplus to producers and is influenced by the industry in his choice of the quota level, we show that an input quota becomes the optimal policy.Agricultural and Food Policy, H2, L2, Q1,

Is There Market Power in the French Comte Cheese Market?

An NEIO approach is used to measure seller market power in the French Comté cheese market, characterised by government-approved supply control. The estimation is performed on quarterly data at the wholesale stage over the period 1985-2005. Three different elasticity shifters are included in the demand specification, and the supply equation accounts for the existence of the European dairy quota policy. The market power estimate is small and statistically insignificant. Monopoly is rejected, as well as weak forms of Cournot oligopoly. Results appear to be robust to the choice of functional form, and suggest little effect of the supply control scheme on consumer prices.Supply control, NEIO, protected designation of origin, Marketing,

Spatial navigation and multiscale representation by hippocampal place cells

Hippocampal lesions are known to impair success in navigation tasks. While such tasks could be solved by memorizing complete paths from a starting location to the goal, animals still perform successfully when placed in a novel starting position. We propose a navigation algorithm to solve the latter problem by exploiting two facts about hippocampal organization: (1) The size of the place fields of hippocampal place cells varies systematically along the dorsoventral axis, with dorsal place cells having smaller place fields than ventral (Kjelstrup et. al. 2008); and (2) the theta oscillation propagates as a traveling wave from dorsal to ventral hippocampus (Lubenov and Siapas, 2009). Taken together, these observations imply that the hippocampal representation of space progresses from fine- to coarse-grained within every theta cycle. 

The algorithm assumes that place cells can be activated by the animal's imagining a goal location, in addition to physically standing in the appropriate location. In the proposed algorithm, place cell activation propagates from small scale to large scale until place cells are found which respond strongly to both the physical location and the goal location. These place fields have their centers aligned roughly in the direction of the goal, providing a crude estimate of which direction the animal should step to approach the goal. Fine-grained directional information is contained in the smaller scale place fields within these large ones. Our algorithm therefore identifies a sequence of place cells, one from each scale, whose centers lie roughly along the line to the goal. 

Simulations reveal successful navigation to the goal, even around obstacles. By minimizing the number of steps the animal takes to reach the goal, we predict the organization of the optimal place field "map"; specifically the fraction of place cells which should be allocated to each spatial scale. This prediction is, in principle, experimentally testable.

The set of place fields with centers lying along a line to the goal is used to compute a step direction by maximizing the probability that those cells will be active in the next time step, given that a particular step direction is chosen.

The proposed algorithm handles navigation around obstacles by including "border cells" (Solstad et. al. 2008) which inhibit place cells in proportion to the degree of overlap between the place field and the obstacle. Furthermore, including firing rate adaptation of place cells prevents the animal from getting stuck in one spot

Will Geographical Indications Supply Excessive Quality?

Consumer/Household Economics, Marketing,

A Fully Calibrated Generalized CES Programming Model of Agricultural Supply

The use of prior information on supply elasticities to calibrate programming models of agricultural supply has been advocated repeatedly in the recent literature (Heckelei and Britz 2005). Yet, Mérel and Bucaram (2009) have shown that the dual goal of calibrating such models to a reference allocation while replicating an exogenous set of supply elasticities is not always feasible. This article lays out the methodological foundation to exactly calibrate programming models of agricultural supply using generalized CES production functions. We formally derive the necessary and sufficient conditions under which such models can be calibrated to replicate the reference allocation while displaying crop-specific supply responses that are consistent with prior information. When it exists, the solution to the exact calibration problem is unique. From a microeconomic perspective, the generalized CES model is preferable to quadratic models that have been used extensively in policy analysis since the publication of Howitt’s (1995) Positive Mathematical Programming. The two types of specifications are also compared on the basis of their flexibility towards calibration, and it is shown that, provided myopic calibration is feasible, the generalized CES model can calibrate larger sets of supply elasticities than its quadratic counterpart. Our calibration criterion has relevance both for calibrated positive mathematical programming models and for “well-posed” models estimated through generalized maximum entropy following Heckelei and Wolff (2003), where it is deemed appropriate to include prior information regarding the value of own-price supply elasticities.Positive mathematical programming, generalized CES, supply elasticities, Crop Production/Industries, Production Economics,

Calibrating a regional PMP model of agricultural supply under multiple constraints: a set of matryoshka doll conditions

Risk and Uncertainty,

Genetic Factors in the Etiology of Congenital Diaphragmatic Hernia

Congenital Diaphragmatic Hernia (CDH) is a relatively common birth defect in which a defect in diaphragm formation is associated with lung hypoplasia and pulmonary hypertension. CDH has a significant mortality of 50-80%, depending on the presence of associated anomalies and on the severity of the pulmonary abnormalities. The etiology of CDH is not known, but it is believed that both environmental and genetic factors contribute to its development. We have collected clinical data of approximately 400 CDH patients. DNA, cell lines and karyotypes are available of ~250 patients. To identify chromosomal regions and genes that play a role in the etiology of CDH we have used complementary molecular (cyto)genetic techniques to identify chromosomal abnormalities. Two of the regions we have identified are the CDH critical region on chromosome 15q26 and a larger region on chromosome 11q23-qter. We have also used high-resolution techniques, such as oligonucleotide-based array-CGH, combined with quantitative PCR, which has proven a fast and reliable method to screen for cryptic chromosomal anomalies in children with non-isolated CDH and which can be used for other congenital anomalies and/or mental retardation as well. The commonly deleted or duplicated regions and their candidate genes identified in patients with non-isolated CDH almost all play a role in retinoic acid metabolism and / or neural crest cell migration. Therefore we propose in the general discussion that both pathways are necessary for normal diaphragm- and lungdevelopment and that disruption at any point in these mechanisms can lead to the development of congenital diaphragmatic hernia