Cooperatives and Contracting in Agriculture: The Case of West Liberty Foods, October 2005

The West Liberty Foods turkey cooperative was formed in 1996 to purchase the assets and assume operations of Louis Rich Foods (an investor-owned processing rm), which, at the time, announced the imminent shutdown of its West Liberty, Iowa, processing facility. We study the creation and performance of this �new generation� cooperative using eld interviews with grower members and company management. We describe changes, before and after the buyout, in the contractual apparatus used for procuring live turkeys, and in the communication requirements, work expectations, and nancial positions of growers. During the private ownership period, most of the inputs (except labor and facilities) were provided by the rm; there was substantial supervision of the growers' actions; growers faced little price and production risk; and growers' equity was due largely to ownership of land and other farm assets. Our interviews reveal that, after cooperative formation, growers were exposed to considerable additional risk; monitoring of growers by the rm was less intensive; grower time and effort commitments to turkey production increased substantially; and a signicant fraction of rm (cooperative) equity came from growers' willingness to leverage their farm and personal assets (and hence indirectly their existing relationships with local lenders). We argue that some of these changes are consistent with a nancial contract where asset pledging and its corollary risk generate higher work effort by growers and a reduction in agency rents. These economies likely compensate for an organizational deadweight loss traditionally associated with cooperative governance.

Planning for Wooded Acreages and Woodlands, August 2005

PM2002B: People own wooded acreages and woodlands for a variety of reasons that may include: timber production, firewood production, recreation, wildlife habitat, aesthetics, and alternative forest products. Most of Iowa’s forestland is privately held, and the majority of ownership is fragmented into an average of ten acres (Forest Reserve Survey, 2004). In fact, the average size of an individual forest or woodlot ownership has been steadily declining for several years due in part to population growth, urban sprawl, and changes in land ownership. Studies indicate that the probability of a sustainable woodlot decreases as the population increases. At the same time, most woodlot owners want to be good stewards and protect and enhance the forest that they own. To achieve this goal, careful forest planning and management is required especially when managing the land for multiple objectives.

Organizational Choice and Environmental Change

We explain the choice between franchising and vertical integration by estimating a model of relative performance in a sample of 250 Spanish car distributors, controlling for self-selection and including environmental factors. The method allows us to estimate performance counterfactuals. Organizational choice seemingly aims to contain moral hazard for both distributors and manufacturers but it is subject to start-up constraints and switching costs. While the market for franchises remained underdeveloped, information asymmetries led to the opening of integrated outlets. Their subsequent conversion into franchised outlets probably involved prohibitive transaction costs. Consequently, they performed worse than would have been expected had they been independent, as confirmed by the systematic improvement observed when they were in fact converted. The timing of such conversions suggests that switching costs were prohibitive until firms developed a substantial cushion of temporary contracts, previously forbidden by regulation.

Leading Double Lives: The History of the Double House in Des Moines, 2005

How people choose to live depends on a variety of social and economic circumstances. Single family dwellings, extended family compounds, and communal apartment blocks are all forms of residential architecture that have ancient roots and occur in every culture. Each form both reflects and affects the living styles of the people who reside there. The double house, which shelters two families in units separated by a wall or floor, balances the convenience of an apartment with the psychological comforts of a home. During the mid to late nineteenth and early twentieth centuries in the United States, the double house was hugely popular in some cities, such as Minneapolis and Milwaukee, but only a minimal presence in Des Moines

Gestão dos recursos hídricos no processo de desenvolvimento sustentável de Cabo Verde: uma proposta

A água é vital para a sobrevivência, saúde e dignidade do ser humano e uma fonte fundamental para o seu desenvolvimento. As reservas de água potável no mundo estão sob pressão constante embora muitos ainda não tenham acesso a esse precioso líquido para atender ás necessidades básicas. A água é um recurso natural com valor económico, estratégico e social. A percepção da escassez tem levado governos, a reorganizar o ambiente institucional e definir novos direitos de propriedade por meio de um sistema de gestão participativo e descentralizado que estimule a utilização do recurso de forma racional. A investigação está direccionada à gestão e à implementação da Lei n.º 41/II/84 de 18 de Junho, que Aprova o Código de Águas que estabelece as bases gerais do regime jurídico de propriedade, protecção, conservação, desenvolvimento, administração e uso dos recursos. O enfoque da pesquisa é as Instituições Governamentais que lidam com a água e as Associações de Bacias hidrográficas que, com os seus olhares e saberes, contribuem com informações para que se construa uma Proposta de Modelo de Gestão numa perspectiva de sustentabilidade. A proposta de modelo pretende contribuir para uma gestão sustentada. A pesquisa é do tipo qualitativa e usa como metodologia o Estudo de Caso. Foi constatada a complexidade da gestão das águas em Cabo Verde, na qual existem ainda muitos entraves e desafios. A Bacia Hidrográfica é a unidade básica de gestão, onde as Associações, as Câmaras Municipais, os Serviços Autónomos de Água e Saneamento, o Instituto Nacional de Gestão dos recursos Hidricos desempenham o papel de gerí-la e preservá-la. Foram identificados como dificuldades: a posse da água não está bem clara, o que dificulta a gestão da Bacia; os conflitos sociais são frequentes quanto ao uso da água no que tange à poluição; a população rural não está devidamente contemplada na gestão dos recursos hídricos. Por fim, constatou-se que Cabo Verde possui as ferramentas para a evolução da Gestão dos Recursos Hídricos, que é o Código de Água. Water is vital for the survival, health and dignity of the human being and a basic source for development. The drinking waters reserves in the world are under constant pressure. The water can be considered a natural resource with economic, strategically and social values. The perception of the scarcity has taken governments, to reorganize the institutional environment and to define new rights of property by means of participation and decentralized system of management that stimulates the use of the resource in rational form. This investigation addressed the Administration of Water Resources in Cabo Verde and the implementation of Law n.º 41/II/84 of 18 of June, which established the National Policy of Water Resources and the National System of Management. The approach of the research is the Governmental Institutions that deal with the water and the Associations that, at a glance, contribute with information that builds the proposal of water resources management in a sustainability perspective. The proposal has as objective to provide subsidies to advance more and more the research regarding sustainability in the administration of waters. The research was qualitative and it used as methodology the Study Case. We identified as difficulties: the ownership of the water is not well clear; the social conflicts are frequent concerning how to use the water. Finally, it was evidenced that Cape Verde has the tools for the evolution of water resources management, which is the Water Code.

Social organization and mating system of free-ranging, greater white-toothed shrews, Crocidura russula

Indirect evidence from trapping suggests that Crocidura russula is less solitary and territorial than other shrews. To study the social organization and mating system, free-ranging adult and juvenile C. russula were tracked simultaneously throughout the year using a radioactive tracking technique. Coincident rest, coincident activity and home range overlap were measured. During winter, all individuals used the same communal nest and spent on average 84% of their total rest in coincident rest. This led to a large home range overlap (52% on average). Coincident activity was low (2% on average). At the onset of the reproductive season the females became, territorial and shared their nest with only one male. During pair formation, coincident activity and home range overlap were significantly greater between than within sexes. The social organization of C. russula appeared to be strongly influenced by season and differed in this respect from the other species in the genus Sorex which are territorial throughout the year.

The molecular basis of social behavior: models, methods and advances.

Elucidating the molecular and neural basis of complex social behaviors such as communal living, division of labor and warfare requires model organisms that exhibit these multi-faceted behavioral phenotypes. Social insects, such as ants, bees, wasps and termites, are attractive models to address this problem, with rich ecological and ethological foundations. However, their atypical systems of reproduction have hindered application of classical genetic approaches. In this review, we discuss how recent advances in social insect genomics, transcriptomics, and functional manipulations have enhanced our ability to observe and perturb gene expression, physiology and behavior in these species. Such developments begin to provide an integrated view of the molecular and cellular underpinnings of complex social behavior.

Effective Shoulder Design and Maintenance, 2007

Granular shoulders are an important element of the transportation system and are constantly subjected to performance problems due to wind- and water-induced erosion, rutting, edge drop-off, and slope irregularities. Such problems can directly affect drivers’ safety and often require regular maintenance. The present research study was undertaken to investigate the factors contributing to these performance problems and to propose new ideas to design and maintain granular shoulders while keeping ownership costs low. This report includes observations made during a field reconnaissance study, findings from an effort to stabilize the granular and subgrade layer at six shoulder test sections, and the results of a laboratory box study where a shoulder section overlying a soft foundation layer was simulated. Based on the research described in this report, the following changes are proposed to the construction and maintenance methods for granular shoulders: • A minimum CBR value for the granular and subgrade layer should be selected to alleviate edge drop-off and rutting formation. • For those constructing new shoulder sections, the design charts provided in this report can be used as a rapid guide based on an allowable rut depth. The charts can also be used to predict the behavior of existing shoulders. • In the case of existing shoulder sections overlying soft foundations, the use of geogrid or fly ash stabilization proved to be an effective technique for mitigating shoulder rutting.

Intellectual property rights and efficient firm organization

I show that intellectual property rights yield static efficiency gains, irrespective oftheir dynamic role in fostering innovation. I develop a property-rights model of firmorganization with two dimensions of non-contractible investment. In equilibrium, thefirst best is attained if and only if ownership of tangible and intangible assets is equallyprotected. If IP rights are weaker, firm structure is distorted and efficiency declines:the entrepreneur must either integrate her suppliers, which prompts a decline in theirinvestment; or else risk their defection, which entails a waste of her human capital. Mymodel predicts greater prevalence of vertical integration where IP rights are weaker,and a switch from integration to outsourcing over the product cycle. Both empiricalpredictions are consistent with evidence on multinational companies. As a normativeimplication, I find that IP rights should be strong but narrowly defined, to protect abusiness without holding up its potential spin-offs.

On commercial media bias

Within the spokes model of Chen and Riordan (2007) that allowsfor non-localized competition among arbitrary numbers of media outlets, we quantify the effect of concentration of ownership on qualityand bias of media content. A main result shows that too few commercial outlets, or better, too few separate owners of commercial outlets can lead to substantial bias in equilibrium. Increasing the number of outlets (commercial and non-commercial) tends to bring down this bias; but the strongest effect occurs when the number of owners is increased. Allowing for free entry provides lower bounds on fixed costs above which substantial commercial bias occurs in equilibrium.

Institutional constraints on organizations: The case of Spanish car dealerships

We study the effect of organizational choice and institutions on the performance ofSpanish car dealerships. Using outlet-level data from 1994, we find that verticallyintegrateddealerships showed substantially lower labor productivity, higher labor costs andlower profitability than franchised ones. Despite these gaps in performance, no verticallyintegratedoutlet was separated until 1994, yet the few outlets that were eventuallyseparated systematically improved their performance. We argue that the conversion ofintegrated outlets into franchised ones involved significant transaction costs, due to aninstitutional environment favoring permanent, highly-unionized employment relations. Inline with this argument, we find that the observed separations occurred in distributionnetworks that underwent marked reductions in worker unionization rates, following thelegalization of temporary labor contracts.

A dilution cost approach to financial intermediation and securities markets

This paper proposes a model of financial markets and corporate finance,with asymmetric information and no taxes, where equity issues, Bankdebt and Bond financing may all co-exist in equilibrium. The paperemphasizes the relationship Banking aspect of financial intermediation:firms turn to banks as a source of investment mainly because banks aregood at helping them through times of financial distress. The debtrestructuring service that banks may offer, however, is costly. Therefore,the firms which do not expect to be financially distressed prefer toobtain a cheaper market source of funding through bond or equity issues.This explains why bank lending and bond financing may co-exist inequilibrium. The reason why firms or banks also issue equity in our modelis simply to avoid bankruptcy. Banks have the additional motive that theyneed to satisfy minimum capital adequacy requeriments. Several types ofequilibria are possible, one of which has all the main characteristics ofa "credit crunch". This multiplicity implies that the channels of monetarypolicy may depend on the type of equilibrium that prevails, leadingsometimes to support a "credit view" and other times the classical "moneyview".

Leasing como alternativa de financiamento de empresas em Cabo Verde - Análise prática de efeitos económicos, financeiros e contabilísticos

Criar mecanismos que produzam e dinamizem o alcance de novos produtos financeiros surge como uma condição necessária para estimular o investimento. Além das condições intrínsecas próprias de uma economia o financiamento é quase que a espinha dorsal para favorecer o desenvolvimento e crescimento económicos. Diversificar as fontes de financiamento para que estas se adaptem à realidade económico-financeira das empresas é essencial, pois não só possibilita o crescimento das empresas nacionais, mas também cria um ambiente de negócios propício ao investimento externo. Convicto da relevância, o presente trabalho tem como escopo uma temática que a nível nacional pouco se tem abordado: trata-se locação financeira que na gíria financeira é entendida por leasing - que de forma sintética se traduz num contrato pelo qual uma das partes concede à outra o gozo temporário de uma coisa contra uma retribuição, e que posteriormente pode ser adquirida, num prazo convencionado, mediante pagamento de um preço determinado ou determinável, nos termos do próprio contrato. O enfoque está em estudar a relevância assumida pelo leasing enquanto fonte de financiamento de médio e longo prazo, no contexto cabo-verdiano, comparativamente à outra fonte – empréstimo bancário de médio e longo prazo. O trabalho reveste-se de uma componente teórica e uma prática. Na componente teórica trata-se do tema no geral, abrangendo uma resenha histórica, o enquadramento legal, das sociedades de locação financeira e dos contratos de locação financeira, tratamento contabilístico, as características específicas que se associam ao tema em apreço e igualmente uma breve análise fiscal. A parte prática desenvolve uma análise comparativa do leasing com o empréstimo bancário de médio e longo prazo onde foram retiradas as conclusões chegadas com o estudo. Resumidamente, pode-se que o leasing é certamente uma das melhores opções de financiamento não só para empresas como igualmente para clientes particulares, sendo, uma opção rápida, simples e vantajosa para o cliente bancário, especialmente se o facto de a propriedade do bem não pertencer ao titular do leasing não causar qualquer incómodo. Create mechanisms that produce and streamline the range of new financial products emerges as a necessary condition to stimulate investment. In addition to its own intrinsic conditions of an economy funding is almost the backbone to promote economic development and growth. Diversify the sources of funding for these adapt to the reality of the economic-financial firms is essential because not only enables the growth of domestic companies, but also creates a business environment conducive to foreign investment. Convinced of the relevance, this work is scoped to a theme that nationally there has been little discussed: it is leasing in slang that is understood by financial leasing - which synthetically translates into a contract whereby one party grants to the another the temporary enjoyment of a thing against retribution, and that can later be acquired within the agreed upon payment of a specified or ascertainable under the contract. The focus is on studying the relevance assumed by leasing as a source of financing medium and long term, the Cape Verdean context, compared to other sources - bank loan of medium and long term. The work has a theoretical and a practical component. In the theoretical part it is the theme in general, covering a historical perspective, the legal framework, the leasing companies and financial leasing contracts, accounting treatment, specific characteristics that are associated to the topic at hand and equally a brief fiscal analysis. The practical part develops a comparative analysis of leasing with bank loan of medium and long term which were withdrawn with the conclusions reached with the study. Briefly, it may be that leasing is certainly one of the best financing options not only by companies as also by private customers, being a fast, simple and profitable for the bank customer, especially if the fact that the ownership of the property does not belong the holder of the lease does not cause any discomfort.

Optimal law enforcement and criminal organization

In this paper, we take an organizational view of organized crime. In particular, we study the organizational consequences of product illegality attending at the following characteristics: (i) contracts are not enforceable in court, (ii) all participants are subject to the risk of being punished, (iii) employees present a major threat to the entrepreneur having the most detailed knowledge concerning participation, (iv) separation between ownership and management is difficult because record-keeping and auditing augments criminal evidence.

Increasing political returns and rural-urban migrations

This paper analyzes the different equilibria in rural-urban migrationsand political redistribution that result from the interaction betweenincreasing political returns, the distribution of land, and creditmarket imperfections. Governments that put a special weight on thewelfare of urban workers when setting agricultural prices generate apolitical externality in the urban sector, giving peasants anincentive to migrate in anticipation of policy determination. Ifcredit markets are imperfect, land ownership confers higherproductivity to peasants, who require large price changes to migrate.In this context, land inequality would lead to large migrations and tolarge policy change, while an egalitarian land distribution would leadto no migration and to a small policy change. This interaction shedslight on the contrasting experience of Latin America and East Asia atthe outset of World War II.