A generalised cross entropy instrumental variables estimator is used to recover the non-stationary transition probability matrix for the Danish pork industry. A technique is also developed to recover missing data points due to category re-specifications. The impact of a set of exogenous...

We characterize optimal investment and compensation strategies in a model of an investment opportunity with managerial incentive problems, caused by asymmetric information over investment costs and the manager's desire to consume slack, and flexibility over the timing of its acceptance. The...

The contracts we consider in this paper must solve three problems: moral hazard, insurance and discrimination. The moral hazard problem is that of providing the agents with incentives to perform in a way that maximizes the profit to the principal, when the agent's actions are unobservable. The...

This paper analyzes a contract between farmers and a large company in the Danish food industry, Danisco Foods. Production of green peas requires a very accurate coordination, which is obtained through centralized decision-making. The contract is based on a tournament system providing risk...

The development of theory on agricultural income problems springs from empirical investigations showing that agricultural income is unstable over time, and that compared to other trades, it is diminishing. The theorists explain this with the fact that agricultural production factors are...

In Denmark, many small-scale forest owners are affiliated to local district offices of The Danish Forestry Extension Service. Increasing economic pressure has caused a search for more efficiency in the Service, including potential reorganisation. In this paper, the efficiency of the different...

This paper discusses economic arguments for government intervention and support in agriculture. Two types of arguments seem plausible. The first one refers to the classical view that agriculture has a chronic income problem and therefore governments must intervene to ensure a fair income...

The TRIP agreement is, economically speaking, a dogs dinner. It ignores the diverging requirements countries have for the protection of intellectual property rights depending on their state of economic development. Furthermore, the agreement does not take into account the fact that incentives...

International trade liberalisation often implies increased potentials for export production. For investing in increasing capacity in agriculture, farmers need to have credit access. However, farmers in many countries are credit constrained, e.g. due to collateral reasons, which is the case in...