Land degradation: links to agricultural output and profitability

To understand land degradation and assess policy responses, knowledge is needed of the bio-physical causes, the economic effects on farms and the incentives farmers face to avoid or ameliorate the degradation. An empirical study of land degradation in the Australian state of New South Wales is presented in this article. The results suggest that there are incentives for farmers to co-exist with certain forms of degradation, while there are also incentives to avoid some other forms.Land Economics/Use,

Firm size and export performance: some empirical evidence

This paper uses firm level data collected by the Australian Bureau of Statistics in its Business Longitudinal Survey to help fill the information gap about the characteristics of successful exporters. This study suggests that the main influences on export performance of Australian manufacturing firms may lie with a range of ‘firm-specific’ factors other than size or domestic market share. These potentially include: kind of activity, product design and quality, marketing expertise and the motivation of management.firm size - exports - performance - business - company - exporters

Counseling versus antidepressant therapy for the treatment of mild to moderate depression in primary care: economic analysis.

OBJECTIVE: To compare the cost-effectiveness of generic psychological therapy (counseling) with routinely prescribed antidepressant drugs in a naturalistic general practice setting for a follow-up period of 12 months. METHODS: Economic analysis alongside a randomized clinical trial with patient preference arm. Comparison of depression-related health service costs at 12 months. Cost-effectiveness analysis of bootstrapped trial data using net monetary benefits and acceptability curves. RESULTS: No significant difference between the mean observed costs of patients randomized to antidepressants or to counseling (342 pounds sterling vs 302 pounds sterling , p = .56 [t test]). If decision makers are not willing to pay more for additional benefits (value placed on extra patient with good outcome, denoted by K, is zero), then we find little difference between the treatment modalities in terms of cost-effectiveness. If decision makers do place value on additional benefit (K > 0 pounds sterling), then the antidepressant group becomes more likely to be cost-effective. This likelihood is in excess of 90% where decision makers are prepared to pay an additional 2,000 pounds sterling or more per additional patient with a good global outcome. The mean values for incremental net monetary benefits (INMB) from antidepressants are substantial for higher values of K (INMB = 406 pounds sterling when K = 2,500 pounds sterling). CONCLUSION: For a small proportion of patients, the counseling intervention (as specified in this trial) is a dominant cost-effective strategy. For a larger proportion of patients, the antidepressant intervention (as specified in this trial) is the dominant cost-effective strategy. For the remaining group of patients, cost-effectiveness depends on the value of K. Since we cannot observe K, acceptability curves are a useful way to inform decision makers

Exploring the Links between Bilateral and Regional Trade Agreements and Merchandise Trade

Over 200 bilateral and regional trade agreements are currently in force, yet their impact remains a topic of debate. We analyse effects of 27 agreements that are of particular importance for Australia on the value of merchandise trade flows using data from 1970 up to the global financial crisis in 2008. We show that preferential trade agreements generally increase trade between members but that there are often offsetting negative effects on trade with non-signatories. In contrast to regional trading blocs and bilateral accords, agreements more oriented towards open trade principles have a positive impact on all trade flows of member nations

Achieving a long-run equilibrium in the dynamic GTAP model

A dynamic version of the GTAP model became available in 2012. The dynamic version known as GDyn, introduced partial adjustment mechanisms for capital accumulation and a dynamic accounting of capital-finance and related income flows between regional households and firms, and a global trust. In long-run equilibrium, the model rates of return are to be equal and constant over time. In practice, illustrative results presented with the release of GDyn show the equilibrium conditions are not satisfied. This paper confirms this model property. It finds that this gives rise to model instability which limits the use of GDyn for the analysis of economic growth within a neoclassical framework. To achieve model stability and overcome this limitation, modelling of rates of return and capital-finance flows is further developed within the GDyn framework to satisfy the stated longer-run neoclassical equilibrium conditions. Results of the revised model demonstrating a stable, long-run equilibrium are reported together with an illustrative policy simulation of a productivity improving technological change in a medium-sized open economy. Some key areas for further research are identified

Achieving a long-run equilibrium in the dynamic GTAP model

A dynamic version of the GTAP model became available in 2012. The dynamic version known as GDyn, introduced partial adjustment mechanisms for capital accumulation and a dynamic accounting of capital-finance and related income flows between regional households and firms, and a global trust. In long-run equilibrium, the model rates of return are to be equal and constant over time. In practice, illustrative results presented with the release of GDyn show the equilibrium conditions are not satisfied. This paper confirms this model property. It finds that this gives rise to model instability which limits the use of GDyn for the analysis of economic growth within a neoclassical framework. To achieve model stability and overcome this limitation, modelling of rates of return and capital-finance flows is further developed within the GDyn framework to satisfy the stated longer-run neoclassical equilibrium conditions. Results of the revised model demonstrating a stable, long-run equilibrium are reported together with an illustrative policy simulation of a productivity improving technological change in a medium-sized open economy. Some key areas for further research are identified

Introducing more flexible modelling of regional household consumption and saving behaviour into the dynamic GTAP model

A dynamic version of the GTAP model of the global economy became available in 2012. The dynamic version known as GDyn, introduced partial adjustment mechanisms for capital accumulation and a dynamic accounting of capital-finance and related income flows between regional households and firms, and a global trust. This paper builds on this original work by including a revised modelling of investment and capital-finance flows to reach a long-run equilibrium in which model rates of return are equal and stable over time. This paper then further adds to the capabilities of the GDyn model by: (i) relaxing the assumption of fixed shares in the consumption-saving decisions of national households; and (ii) providing for the inclusion of exogenously determined changes in national consumption-saving choices. The revised model — termed GDyn-FS — is used to: infuse forecast reductions in saving as a proportion of domestic income for China in a model base line; and, against this base line, simulate a decline in the willingness to invest in a medium-sized open economy