In Europe, floods are among the natural catastrophes that cause the largest economic damage. This article explores the potential of two distinct types of multivariate flood damage models: ‘depth‐damage’ models and ‘rainfall‐damage’ models. We use survey data of 346 Flemish households that were victim of pluvial floods complemented with rainfall data from both rain gauges and weather radars. In the econometrical analysis, a Tobit estimation technique is used to deal with the issue of zero damage observations. The results show that in the ‘depth‐damage’ models flood depth has a significant impact on the damage. In the ‘rainfall‐damage’ models there is a significant impact of rainfall accumulation on the damage when using the gauge rainfall data as predictor, but not when using the radar rainfall data. Finally, non‐hazard indicators are found to be important for explaining pluvial flood damage in both ‘depth‐damage’ and ‘rainfall‐damage’ models.
The creation of optimal land institutions attracted renewed attention in the 1990s because of its central role in the transition process in former Communist countries in the former Soviet Union and Eastern Europe and more recently because of large-scale land investments in developing countries. This paper documents the existence of large variations in land institutions (markets and regulation) using current and historical data from Western and Eastern Europe. It then offers some hypotheses to explain these differences and draws implications for the role of land institutions in development (with reference to the current debate on large scale land acquisitions).
Purpose
– In the past decade, there has been a dramatic decline in agricultural employment in Bulgaria and several reports have pointed at supply chain modernisation and poor milk quality as the main reasons for the dramatic decline in the number of farms. However, to date the policy debate is been based on ad hoc claims, while there is relatively little micro-level evidence. The purpose of this paper is to analyse the determinants of structural change in the Bulgarian dairy sector in the period 2003-2009.
Design/methodology/approach
– This paper analyses the determinants of structural change in the Bulgarian dairy sector in the period 2003-2009, using a unique panel survey of 296 farm households in the North and South Central Region of Bulgaria. In order to control for sample attrition bias, the authors use a two-step Heckman model of farm survival and growth model.
Findings
– The data confirms the rapid outflow of agricultural labour from dairy farming activities: 55 per cent of the farm households supplying milk to a dairy company in 2003 stopped supplying in 2009. The main reasons for quitting are ageing of the household, health problems and an increase in off-farm employment alternatives and not supply chain modernisation and milk quality standards. The institutional innovations which are associated with integration in modern supply chains, such as the provision of farm assistance programmes, have a positive impact on small farms’ growth.
Originality/value
– The study is one of the first to use panel data to analyse the impact of standards on the survival and growth of small farms in value chains. The authors analyse the determinants of farm survival and growth in the Bulgarian dairy sector in the period 2003-2009, using panel surveys of 296 dairy farm households in the North and South Central Region of Bulgaria and panel data from interviews with dairy companies. The findings are relevant beyond the Bulgarian dairy sector as supply chain modernisation and changes in quality regulations are taken place in many other transition and developing countries.
The basic neo-classical model implies that agricultural employment responds positively to increases in farm income. This argument is assumed by proponents and critics of agricultural subsidy programs in their discourse in favor of or against government support for farmers. However, empirical evidence on the relationship between agricultural employment and farm income (and subsidies) is mixed, and some studies find evidence that an increase in farm income has a negative impact on agricultural employment. This article proposes a new explanation for this puzzle. When farm income increases, part of the additional income is invested by credit-constrained farmers in their children's education and educated children are less likely to become farmers themselves. We provide a theoretical model and empirical evidence supporting this argument.Le modèle néo-classique de base part du principe que l'emploi agricole réagit positivement à l'augmentation des revenus fermiers. Cet argument est proposé par les défenseurs et les critiques des programmes de subventions agricoles, lorsqu'ils se positionnent pour ou contre le soutien gouvernemental aux fermiers. Cependant, les preuves empiriques sur la relation entre emploi agricole et revenus fermiers (et subventions) sont mitigées, et quelques études ont trouvé qu'une augmentation des revenus fermiers a un impact négatif sur l'emploi agricole. Cet article propose une nouvelle explication à ce problème. Lorsque les revenus fermiers augmentent, une partie de ces revenus supplémentaires est investie par des fermiers, limités par les contraintes de crédit, dans les études de leurs enfants. Les enfants ayant fait des études sont moins susceptibles de devenir eux-mêmes des fermiers. Nous fournissons un modèle théorique et des preuves empiriques pour appuyer cet argument.
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