There is a widely held industry assumption from microfinance institutions that agricultural loans have poorer repayment rates, which has resulted in many loans being provided for small businesses as opposed to agricultural purposes. Using data from a sample of 100 borrowing groups from a south Indian Microfinance Institutions (MFI), this study challenges this belief by analyzing the repayment efficiency of borrowing groups and reflects on the implications for agricultural microfinance loans. The analysis is run using Bayesian stochastic frontier estimation with an exponential hierarchical prior on the efficiency term. Our results indicate that the average efficiency of the borrowing groups analyzed was approximately 75% and that having a higher percentage of agricultural loans increased borrowing group efficiency while gains in efficiency also rose as the size of the borrowing group increases.

Food expenditure patterns were analyzed for Hispanic households in the United States. Engel curves for three food categories-total food (TF), food eaten at home (FAH), and food eaten away from home (FAFH)-were estimated using a semilogarithmic functional form. The models for TF and FAH were estimated by OLS, using heteroscedasticity consistent estimators. The equation for FAFH was estimated using a two-part model, with the level equation estimated by least squares with corrections for heteroscedasticity, using only the observations for which a positive amount of expenditures on FAFH was reported. The estimated income elasticity of demand for food for Hispanic households were 0.29 for TF, 0.21 for FAH, and 0.49 for FAFH. Household size elasticities were 0.32, 0.40, and 0.07, respectively. Our analysis indicates that Hispanic households devoted a higher proportion of their budget to FAH, 25.8%, than the average American household, while the proportion spent on FAFH was only 3.6%.[EconLit citations: L610.] © 2002 Wiley Periodicals, Inc.

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The United States has been a net importer of softwood lumber for several decades, with more than 90% of its 1985 imports coming from Canada. A four‐equation simultaneous sytem was developed to analyze the impact of a proposed tariff on domestic softwood lumber consumption production and on imports. The structural coefficients were estimated by two‐stage least squares estimators using annual data from 1965 through 1985. The analysis indicated that U.S. softwood lumber consumption was price inelastic (‐0.029) while import demand was highly elastic (‐3.08). Consequently, the imposition of an import tariff or Canadian export tax on softwood lumber, as requested by the U.S. softwood lumber industry, will have little effect on total consumption, but will reduce imports significantly and will lead to higher prices for U.S. producers and consumers. Les États‐Unis ont été un importateur net de bois ďoeuvre de résineux pendant plusieurs décennies et plus de 90% de leurs importations de 1985 provenaient du Canada. Nous avons élaboré un système simultané à quatre équations permettant ďanalyser ľincidence ďun droit qu'on songe à imposer sur la consommation et la production intérieures du bois ďoeuvre de résineux et sur les importations. Les coefficients structuraux ont été estimés a ľaide ďune méthode ďanalyse des moindres carrés à deux stades, à partir de données recueillies annuellement de 1965 jusqu'à 1985. Ľanalyse a démontré que la consommation américaine de bois ďoeuvre de résineux n'est pas élastique quant au prix (‐0,029) mais que la demande à ľimportation est très élastique (‐3,08). En conséquence, ľimposition ďun droit à ľimportation ou ďune taxe canadienne à ľexportation pour le bois ďoeuvre de résineux, telle que réclamée par le secteur américain de la production de bois ďoeuvre de résineux, aura peu ďeffets sur la consommation totale mais elle réduira sensiblement les importations et mènera à une augmentation des prix pour les producteurs et les consommateurs américains.

The welfare impacts of the 1987-91 Canadian "voluntary' ' 15 % lumber export tax and the current 6.51% U. S. import duty are analyzed using a simultaneous equations model of the softwood lumber market. The results show that U. S. consumers su$$er losses 35 % to 45 % of those endured by Canadian producers. Canadian national welfare was much higher under the voluntary export tax, indicating the Canadian government erred in unilaterally terminating the agreement. In both instances, the U.S. govemment pursued policies that benefited domestic producers at the expense of U. S. lumber consumers, with no attempt or discussion of compensation. Thus, this appears to be a case of "beggar thy consumer" trade policy. L.es incidences economiques de la taxe canadienne tc volontaire Y de 15 % a 1 'exportation du bois d'oeuvre, et du tarif douanier americain de 6,51% actuellement en eJfet, sont analysbs a partir d 'un modele d 'equations simultanees du marche du bois d'oeuvre de resineux. L.es resultats montrent que les pertes encaissees par les consommateurs am&icains se situaient a 35 -45 % de celles subies par les producteurs canadiens. La situation economique des producteurs canadiens etait beaucoup meilleure a'ans le regime volontaire a 1 'exportation ce qui laisse a penser que le gouvernement canadien a fait erreur en mettant unilateralement j?n a 1 'entente. Dans les deux cas, le gouvemement americain a adopt& des politiques qui profitent a ses producteurs aux d&pens de ses consommateurs de bois d'oeuvre et cela sans leurs o@ir aucune compensation ni meme consentir a discuter de la question. Cette politique du commerce exterieur nous apparait comme un beau cas de je-m 'en-foutisme h 1 'egard de ses propres consommateurs.