Norman Rask

Economics of Cost-Share Leases in Less-developed Countries

Economists have long recognized that output-share leases result in inefficiencies in variable resource use. Cost-share leases have been suggested as a way of overcoming this inefficiency. Only in rare cases, however, has cost sharing become a part of share leasing in less-developed countries. It is argued in this article that in less-developed countries landowners generally make more net income by not adopting cost-share leases. The societal loss due to output-share leasing, and several policy alternatives, in addition to cost-sharing, which might help resolve this inefficiency problem, are discussed.

Ethanol fuel as an octane enhancer in the US fuel market

Abstract Ethanol from corn is an important US renewable energy source. In 1986, about 3·3 billion liters of ethanol were used, primarily as a gasoline extender. With lead phasedown, ethanol (octane rating of 113-16) is being considered as an alternative octane source. First, octane requirements following enactment of lead phasedown regulations are determined. Competing octane sources are then analyzed under various oil price, corn price and policy (subsidies, import tariffs) scenarios. At corn price levels of

Changing competitiveness in world soybean markets

59.05–68.90 Mg and oil prices of

The Impact of Regime Type on Food Consumption in Low Income Countries

16–26 per barrel, a subsidy of

Agricultural impacts of increased alcohol industry demand for corn: the case of Ohio

0.07–0.105 per liter would be necessary for ethanol to compete with other octane enhancers. Potential demand for ethanol could approach 10.7 billion liters per year. A tariff of

Projecting food-fuel conflicts resulting from biomass energy development in Ohio

0.035–0.071 per liter on imported ethanol (net of subsidy) would be necessary to protect this potential market for US corn-based ethanol.

Critical Choices in Energy: Discussion

Competitiveness in world markets is the foundation upon which the GATT negotiations and the New Economic Order are built. In this article the changing competitiveness in world soybean markets is evaluated relative to government policy and natural resources. The landed cost of soybeans at Rotterdam and Japan favors Argentina and Brazil over the US. For soybeans and soybean products combined, the US has steadily lost export market share from about 95% in the early 1970s to 45% in 1990. The Brazilian share has grown to 30% and the Argentine share to 16% in this same period. A fundamental shift from the export of soybeans to more soybean product exports has occurred largely because of policies favoring product exports from Argentina and Brazil.

Economic development and food production–consumption balance: A growing global challenge

Abstract Competing studies use food consumption to measure the impact of political regime on the welfare of the poor. Democracies may outperform autocracies by using growth to hide redistribution, improving caloric consumption and currying favor. Alternatively, autocracies may have greater incentives to lower food prices to quell urban unrest. We test these competing theories using a more detailed, continuous, nuanced measure of food consumption quality – cereal equivalent values. We find evidence to support the second hypothesis, that autocracies outperform democracies at low incomes. For higher incomes, democracies perform significantly better. Segregated by growth, autocracies again outperform democracies at low incomes.

Inflation and Crop Profitability: How Much Can Farmers Pay for Land?

Abstract A mathematical programming model was used to forecast the impacts on Ohios agricultural sector of a moderate increase in alcohol industry demand for corn. Because converting corn into ethanol yields byproduct feeds that can substitute for soybean meal and other commodities, most of the alcohol industrys demand for corn can be satisfied by switching land from the production of soybeans to the production of corn. For this reason, projected levels of ethanol production do not greatly affect crop or livestock prices. This finding is likely to hold for other corn-growing areas in North America.

Reaching Turning Points in Economic Transition: Adjustments to Distortions in Resource-Based Consumption of Food

Abstract This paper describes research intended to forecast the impacts of alcohol fuel production on the agricultural economy of the State of Ohio. The mathematical programming techniques used to make projections of state-wide impacts are discussed. Also presented are some results of a model designed to identify the effects of alcohol fuel production on Ohios cornbelt region. In addition to discussing the structure of the state-wide and cornbelt region models, this paper suggests how the models can be used to quantify complementarities and trade-offs existing between alcohol production goals and land use goals.