Dit document is een samenvatting van alle colleges van het vak Economics of Agribusiness (AEP-20306). Daarnaast zijn deze colleges aangevuld met belangrijke informatie uit het boek. Daardoor is deze samenvatting erg compleet en het enige wat je hoeft te leren voor je tentamen.
o Elasticity is percentage change in variable y if variable x changes with 1%
Integrals
- Indefinite integral: geen gebied, formule, met constante erbij
o Wanneer er boven en onder het integraal teken geen cijfers staan
- Denifite integral: een gebied onder een curve met 2 punten
o B en a invullen in de x
Convexity and concavity of functions
- Convex: second order derivative >0
o 2 punten lijn erdoorheen, min is eronder
- Concave: second order derivative <0
, o 2 punten lijn erdoorheen, max is erboven
Optimisation
- Optimisation: FOD = 0
o Slope is horizontal
o FOC
- Maximum: SOD <0
- Minimum SOD >0
Constrained optimisation
- Lagrange: zie slides 24-28
Hoofdstuk 1
Agri-complex
- Agriculture and horticulture: sum of industries producing agricultural and horticultural
products
o Industry: firms producing similar products with a similar technology
o Services, forestry not included
- Agri-complex/ agribusiness
o Based on domestically produce draw products
All products that disappear is if there is no agriculture (no milk, but still
retail import)
Including processing, input delivering industry
o Based on domestically produced in imported raw products
All products that disappear if there is nog agriculture and no import
Example: cacao beans
o First definition: still beans still import
o Second definition: no beans no import
- Production chain: all production stages from resources to consumers
Value added
- Value added: revenue – variable costs
o No profit (firm needs to hire people and pay interest)
- Factor inputs: production factor
General
o Net versus gross value added
NVA: sum of rewards of production factors (also measure of production)
GVA: with capital depreciation
o Net and gross domestic product
NDP: sum of NVA all industries
GDP: adding capital depreciation
o National income
GDP – foreign people in NL + domestic people in foreign
Caveats
o External effects not taken into account
External effect: non-priced by products
o Income is not utility
Utility is more important than income
, But income is taken into account
o Income distribution is not taken into account
Many rich people high GDP
o Non-valued productions not taken into account
Household work, volunteer work
Economic growth: GDP (total value added) gone up
Share of agriculture in GDP decreases
GVA agriculture GVA agriculture Y agriculture Y food C food C total
= × × × ×
GDP Y agriculture Y food C food Ctotal GDP
a ×b × c × d × e
A b c d e
A: decreases (because of)
o Differentation: dividing production process vertically
Not all processing in the same firm
Oppositie = integration: all in one firm
o Specialisation: dividing production process horizontally
Specialisation in one process
Opposite = diversification: besides milking, mini camping
Differentiation and specialisation for scale advantages and lower production costs
o High productivity increase in agriculture
Same unit of factor of input producing more GVA/Y falls
o Special factors
B: decreases
o How much of output agriculture is for food processing
o Demand for more processed products
C: ?
o Degree of self-sufficiency
D: decreases
o Law of engel
o More welfare expenditure on food increases share on food expenditure
decreases food in total expenditure decreases
E: ?
o Share of consumption in GDP
o Final demand = C+G+I+E-M
Employment
General
o Source of income
o Taxes
Source of government income
Labour is family members/ seasonal workers
Caveats
o Working is a way to earn income but often involves negative utility
Not be valued positive automatically
o Created by subsidies
Unfavourable to economic welfare (hinders employment other sectors)
, Large budget costs government
Development over time
o
E agri Ltot
=
Etot Lagri (
Y × Pagri
× agri
Y tot × Ptot )
P
× tot
Pagri
Decrease
o Labour productivity in agriculture: -
o Share in value total production: -
o Terms of trade: -
Balance of payment
General
o Part of final demand create GDP
o Exports are source of foreign currencies
o Export balance: exports minus imports
Caveats:
o Income earned with exports is important
o Transit trade is important
Imports are also needed
Land use and landscape
External effect
Agriculture important land using activity
Share of agriculture decreases
Strict land policy: destination of land
Difference between housing land price and agricultural land describes importance of
agriculture
Emissions of pollutants
Negative external effect
Greenhouse effect:
o CO2, N20, CH4
Acidification:
o NH3 (ammonia)
Eutrophication: N,P
o Restrictions
o Decreased because of milk quota
Adaptation costs: costs for adapting to global warming (dikes)
Conclusions
Share of agriculture in GDP and employment is low and decreasing. The share of agribusiness
is larger
Share of agriculture and agribusiness in exports is large in the Netherlands. However this
share is not that important
Share of agriculture in emission of pollutants in the Netherlands is large but decreasing
Agriculture is an important land using activity
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