The transition of a centrally planned to a more market economy provides a natural Experiment on t... more The transition of a centrally planned to a more market economy provides a natural Experiment on the role of institutions and exchange in economic growth. This paper uses a unique dataset based on a survey of 305 dairy producing and supplying households in Bulgaria to analyze the impact of late payments for delivered products and farm assistance programs. The results
As recently as a century ago, one out of two people in Europe was employed in the agricultural se... more As recently as a century ago, one out of two people in Europe was employed in the agricultural sector. Today agriculture represents only a small fraction of total employment in most EU member states. What makes this decline in agricultural employment even more striking is that this evolution has occurred despite substantial EU subsidies to support farmers’ income. Given the
Like all markets in the former communist countries, the Eastern European beer market has been str... more Like all markets in the former communist countries, the Eastern European beer market has been strongly affected by the economic reforms in the beginning of the 1990s. In the first years after reforms, there was a substantial decline in the production of barley, malt and beer. However, the brewery sector soon attracted interest from foreign investors, who faced problems in sourcing sufficient high quality malt in order to produce high quality beer. Therefore, they reintroduced vertical coordination in the supply chain to obtain malt and barley that consistently met their quality requirements. The associated change in beer quality has been one of the drivers behind the spectacular growth of beer consumption in several Eastern European countries. Most remarkable was the growth in the Russian beer market, where beer consumption more than quadrupled over the course of a decade. In this paper, we describe and analyze the dramatic restructuring of the beer industry and the changes in the i...
Agricultural employment in industrialized countries has been steadily decreasing despite importan... more Agricultural employment in industrialized countries has been steadily decreasing despite important levels of farm subsidies. In this paper we provide a new explanation for this puzzle, namely the positive impact of subsidies on the education level of farmers’ children. If farmers are credit constrained, they may underinvest in their children’s education. By increasing farmers’ incomes, subsidies increase investment in education.
ABSTRACT This paper analyzes the impact of increasing direct payments (DPs) on land rents in six ... more ABSTRACT This paper analyzes the impact of increasing direct payments (DPs) on land rents in six New European Union (EU) Member States. In these countries, agricultural subsidies largely increased as a result of EU accession. We find that up to 25 percent of DPs are capitalized in land rents. In addition, the results show that capitalization of DPs is higher in more credit-constrained markets, while capitalization of DPs is lower in countries where more land is used by corporate farms, reflecting a stronger bargaining position of corporate farms and unequal access to subsidies in these countries.
ABSTRACT The basic neo-classical model implies that agricultural employment responds positively t... more ABSTRACT 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.
The transition of a centrally planned to a more market economy provides a natural Experiment on t... more The transition of a centrally planned to a more market economy provides a natural Experiment on the role of institutions and exchange in economic growth. This paper uses a unique dataset based on a survey of 305 dairy producing and supplying households in Bulgaria to analyze the impact of late payments for delivered products and farm assistance programs. The results of the dynamic panel analysis indicate that late payments have a negative influence on farm growth, while contracting with interlinked farm assistance programs, had a positive effect on farm growth.
The transition of a centrally planned to a more market economy provides a natural Experiment on t... more The transition of a centrally planned to a more market economy provides a natural Experiment on the role of institutions and exchange in economic growth. This paper uses a unique dataset based on a survey of 305 dairy producing and supplying households in Bulgaria to analyze the impact of late payments for delivered products and farm assistance programs. The results
As recently as a century ago, one out of two people in Europe was employed in the agricultural se... more As recently as a century ago, one out of two people in Europe was employed in the agricultural sector. Today agriculture represents only a small fraction of total employment in most EU member states. What makes this decline in agricultural employment even more striking is that this evolution has occurred despite substantial EU subsidies to support farmers’ income. Given the
Like all markets in the former communist countries, the Eastern European beer market has been str... more Like all markets in the former communist countries, the Eastern European beer market has been strongly affected by the economic reforms in the beginning of the 1990s. In the first years after reforms, there was a substantial decline in the production of barley, malt and beer. However, the brewery sector soon attracted interest from foreign investors, who faced problems in sourcing sufficient high quality malt in order to produce high quality beer. Therefore, they reintroduced vertical coordination in the supply chain to obtain malt and barley that consistently met their quality requirements. The associated change in beer quality has been one of the drivers behind the spectacular growth of beer consumption in several Eastern European countries. Most remarkable was the growth in the Russian beer market, where beer consumption more than quadrupled over the course of a decade. In this paper, we describe and analyze the dramatic restructuring of the beer industry and the changes in the i...
Agricultural employment in industrialized countries has been steadily decreasing despite importan... more Agricultural employment in industrialized countries has been steadily decreasing despite important levels of farm subsidies. In this paper we provide a new explanation for this puzzle, namely the positive impact of subsidies on the education level of farmers’ children. If farmers are credit constrained, they may underinvest in their children’s education. By increasing farmers’ incomes, subsidies increase investment in education.
ABSTRACT This paper analyzes the impact of increasing direct payments (DPs) on land rents in six ... more ABSTRACT This paper analyzes the impact of increasing direct payments (DPs) on land rents in six New European Union (EU) Member States. In these countries, agricultural subsidies largely increased as a result of EU accession. We find that up to 25 percent of DPs are capitalized in land rents. In addition, the results show that capitalization of DPs is higher in more credit-constrained markets, while capitalization of DPs is lower in countries where more land is used by corporate farms, reflecting a stronger bargaining position of corporate farms and unequal access to subsidies in these countries.
ABSTRACT The basic neo-classical model implies that agricultural employment responds positively t... more ABSTRACT 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.
The transition of a centrally planned to a more market economy provides a natural Experiment on t... more The transition of a centrally planned to a more market economy provides a natural Experiment on the role of institutions and exchange in economic growth. This paper uses a unique dataset based on a survey of 305 dairy producing and supplying households in Bulgaria to analyze the impact of late payments for delivered products and farm assistance programs. The results of the dynamic panel analysis indicate that late payments have a negative influence on farm growth, while contracting with interlinked farm assistance programs, had a positive effect on farm growth.
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Papers by Kristine Van Herck