Publications

2019
Uzun, V. ; Shagaida, N. ; Lerman, Z. . Russian Agriculture: Growth And Institutional Challenges. Land Use Policy 2019, 83, 475-487. Publisher's VersionAbstract
Russian agriculture has shown stable growth since 1999. The food trade balance steadily improves and the share of imported food in retail markets is decreasing due to the government's import substitution policies. Russia has re-emerged on the world arena as a food exporter and now ranks among the leading exporters of wheat and vegetable oil. Agricultural production growth has become export oriented. To continue its growth, Russia's agriculture should emphasize returning unused land to cultivation and adopt new technologies to increase the comparatively low crop and livestock yields. The skewed land distribution and agricultural support system, both strongly biased toward large farms and agroholdings, constrain the development of small farms and prevent their participation in food value chains, negatively impacting on rural development. © 2019 Elsevier Ltd
Heiman, A. ; Gordon, B. ; Zilberman, D. . Food Beliefs And Food Supply Chains: The Impact Of Religion And Religiosity In Israel. Food Policy 2019, 83, 363 - 369. Publisher's VersionAbstract
This paper demonstrates that religion and religiosity affect norms, which affect food consumption patterns and production. Heterogeneity and asymmetric information lead to multiple certification channels as well as multiple supply chains. Major supply chains may address multiple constituencies that are secular or less religious. Technological change affects norms and thus the food system. We obtain these results by analyzing the food systems for meat products in Israel where there are three religions – Jews, Muslims, and Christians – and people assign themselves three levels of religiosity – secular, conservative, and orthodox. Israel has multiple Kosher and Halal certifiers and several specialized supermarket chains for orthodox groups. Its main supermarket chains serve secular and some conservative segments. The immigration of secular Jews from Russia led to the proliferation of non-Kosher supply chains and products, and increased consumption of pork. New technologies and higher incomes led to emergence of fast food chains serving orthodox Jews that had previously tended to eat at home.
Elimelech, E. ; Ert, E. ; Ayalon, O. . Bridging The Gap Between Self-Assessments And Measured Household Food Waste: A Hybrid Valuation Approach. Waste Management 2019, 95, 259 - 270. Publisher's VersionAbstract
Great effort is invested in mapping the extent of household food waste and its main determinants. However, food waste valuation remains a challenging task. Valuation methods can be divided roughly into objective measurements that are based on physical waste surveys, and subjective self-assessments that are based on diaries or questionnaires. Self-assessment methods have been more popular than food waste measurement because they are less costly. The goal of this paper is to empirically test whether self-assessments can accurately reflect objective measurement. To answer this question, we implemented a hybrid valuation approach by integrating and comparing three methods: a self-assessment questionnaire, a physical waste survey, and a food expenditure survey. Self-assessments slightly underestimated measured food waste proportion (13.7% vs. 16.3%, respectively). The results also show a positive, yet, not very strong correlation between the measures and the self-assessments of unconsumed and partly consumed avoidable food waste in most food categories. Self-assessments of monetary losses were €42.07 per household per month on average, overestimating calculated losses of €25.74 on average. Our findings question the validity of self-assessments. The current paper demonstrates the questionable nature of the implicit assumption that self-assessment reflects the true level of food waste and suggests a rigorous method for exploring this relation.
Elimelech, E. ; Ert, E. ; Ayalon, O. . Exploring The Drivers Behind Self-Reported And Measured Food Wastage. Sustainability 2019, 11. Publisher's VersionAbstract
Understanding households’ food waste drivers is crucial for forming a coherent policy to meet the sustainable development goals. However, current studies have documented mixed evidence regarding food waste determinants. Most studies have relied on self-reports, assuming they reflect actual behaviors. This study applies a structural equation model that evaluates both self-reported and measured food wastage, and how they are affected by different households’ attributes, attitudes, and behaviors. As such, it also provides a test for the underlying logic that self-reports are a proxy for actual food waste. Results show that measured food wastage is, at best, weakly correlated with self-reports. Moreover, drivers affecting self-reported and measured food wastage are not necessarily the same. Household size affects only measured food wastage. Source separation behavior negatively affects self-reported and measured food wastage, while environmental attitudes have a negative effect only on self-reports. Meal planning, unplanned shopping, and food purchased have no impact on self-reported and measured food wastage. The relation between self-reported and actual food waste and their drivers are even less understood than we thought. The distinction between self-reports and actual waste is crucial for follow-up research on this subject as well as assessing policy measures.
Perez-Sebastian, F. ; Raveh, O. . Federal Tax Policies, Congressional Voting And Natural Resources. Canadian Journal of Economic 2019, 52, 1112-1164. Publisher's VersionAbstract
Abstract Can abundance of natural resources affect legislators' voting behaviour over federal tax policies? We construct a political economy model of a federalized economy with district heterogeneity in natural resource abundance. The model shows that representatives of natural resource-rich districts are more (less) willing to vote in favour of federal tax increases (decreases). This occurs because resource-rich districts are less responsive to federal tax changes due to the immobile nature of their natural resources. We test the model's predictions using data on roll-call votes in the US House of Representatives over the major federal tax bills initiated during the period of 1945–2003, in conjunction with the presence of active giant oil fields in US congressional districts. Our identification strategy rests on plausibly exogenous giant oil field discoveries and exploitation and narrative-based aggregate federal tax shocks that are exogenous to individual congressional districts and legislators. We find that: (i) resource-rich congressional districts are less responsive to changes in federal taxes and (ii) representatives of resource-rich congressional districts are more (less) supportive of federal tax increases (decreases), controlling for legislator, congressional district and state indicators. Our results indicate that resource richness is approximately half as dominant as the main determinant, namely party affiliation, in driving legislators' voting behaviour over federal tax policies.
Perez-Sebastian, F. ; Raveh, O. ; Reingewertz, Y. . Heterogeneous Vertical Tax Externalities And Macroeconomic Effects Of Federal Tax Changes: The Role Of Fiscal Advantage. Journal of Urban Economics 2019, 112, 85 - 110. Publisher's VersionAbstract
How do state tax rates respond to federal tax shocks? This paper presents a novel mechanism of heterogeneous vertical tax externalities across state-levels of fiscal advantage, showing that tax increases can be expansionary – even without their reinvestment. States rich in natural resources have a fiscal advantage in the inter-state competition over production factors which allows them to respond better to increases in federal taxes and, consequently, attract capital from other parts of the nation. We add heterogeneity in fiscal advantage levels to an otherwise standard model of vertical tax externalities and horizontal tax competition. The model shows that, irrespective of federal redistribution, the contractionary effect of a federal tax increase can be overturned in fiscally advantaged states, through an increase in their tax base. Using the case of the U.S., and narrative-based measures of federal tax shocks a-la Romer and Romer (2010), we provide empirical evidence for the various aspects of this mechanism. Specifically, our baseline estimates indicate that, controlling for federal transfers, a 1% increase in the GDP share of capital-related federal taxes at the beginning of a year increases the growth rate of the per capita tax base by approximately 0.7% in high fiscal advantage states at the end of it.
Kimhi, A. ; Hanuka-Taflia, N. . What Drives The Convergence In Male And Female Wage Distributions In Israel? A Shapley Decomposition Approach. The Journal of Economic Inequality 2019, 17, 379–399. Publisher's VersionAbstract
We examine the drivers of the convergence of the hourly wage distributions of males and females in Israel between 1995 and 2008. Israel is an interesting case study in this respect, since it experienced declining wage inequality in recent decades, as opposed to most developed countries. We found that the gender differences in both average wages and wage inequality declined over time. In particular, average wages increased faster for females than for males, while wage inequality declined faster for males than for females. We decomposed these distributional changes into the contributions of worker and job attributes, the returns on these attributes and residuals using a Shapley approach applied to counterfactual simulated wage distributions. We found that most of the increase in male wages was due to the increase in wages of workers in high-wage occupations and industries, while female wages increased mostly due to the increase in the returns to experience. The decline in wage inequality was driven mostly by changes in attributes, the decline in the returns to education, and the catching-up of immigrant workers, and each of these components was stronger for males than for females. We conclude that the convergence of the male and female wage distributions was due to both changes in the supply of labor, especially among females, and changes in the demand for labor leading to changes in the returns to various skills.
Reitan, A. ; Rubin, O. D. ; Rubin, A. ; Kimhi, A. . Privatization, Demographic Growth, And Perceived Sustainability: Lessons From The Israeli Renewing Kibbutzim. Sustainable Development 2019. Publisher's VersionAbstract
Abstract In 2005, the State of Israel established a new classification?renewing kibbutzim. This study examines the relationship between the extent of privatization and the various forms of demographic growth that were permissible under the new classification and their impact on the perceived sustainability of the kibbutz in these communal communities. We collected data at the kibbutz level via interviews with community managers and at the individual level through questionnaires among community members in 19 kibbutzim. We employed the ?nearest neighbor? methodology to create pairs who were demographically eligible for a before and after comparison. Although our results about perceived sustainability suggest that kibbutzim across the board have overcome the struggle to survive and have been able to recover, unlike commonly assumed, changes they adopted in the direction of more privatization and diversified statuses are clearly correlated with smaller increases in levels of perceived sustainability. Our findings may offer lessons for wider sociological questions concerning processes of privatization and stratification.
Zelingher, R. ; Ghermandi, A. ; De Cian, E. ; Mistry, M. ; Kan, I. . Economic Impacts Of Climate Change On Vegetative Agriculture Markets In Israel. Environmental and Resource Economics 2019. Publisher's VersionAbstract
We integrate the combined agricultural production effects of forecasted changes in CO2, temperature and precipitation into a multi-regional, country-wide partial equilibrium positive mathematical programming model. By conducting a meta-analysis of 2103 experimental observations from 259 agronomic studies we estimate production functions relating yields to CO2 concentration and temperature for 55 crops. We apply the model to simulate climate change in Israel based on 15 agricultural production regions. Downscaled projections for CO2 concentration, temperature and precipitation were derived from three general circulation models and four representative concentration pathways, showing temperature increase and precipitation decline throughout most of the county during the future periods 2041–2060 and 2061–2080. Given the constrained regional freshwater and non-freshwater quotas, farmers will adapt by partial abandonment of agriculture lands, increasing focus on crops grown in controlled environments at the expense of open-field and rain-fed crops. Both agricultural production and prices decline, leading to reduced agricultural revenues; nevertheless, production costs reduce at a larger extent such that farming profits increase. As total consumer surplus also augments, overall social welfare rises. We find that this outcome is reversed if the positive fertilization effects of increased CO2 concentrations are overlooked.
Ert, E. ; Fleischer, A. . The Evolution Of Trust In Airbnb: A Case Of Home Rental. Annals of Tourism Research 2019, 75, 279 - 287. Publisher's VersionAbstract
Airbnb, a leader of P2P accommodation markets, has acknowledged that “trust is what makes Airbnb work” and has implemented several trust indicators over the years: reputation system, impression formation, and certification. We evaluate the changes in these indicators over time: 1. the modification of the reputation system, 2. the removal of hosts’ photos from the main search screen, and 3. the introduction of the Superhost program. We find that the change of the rating system was associated with a small, yet significant, reduction in ratings, that the removal of the hosts’ photos might have eliminated the price premium of trustworthy images, and that Superhost certification involves a price premium, but does not seem to compensate for established reputation. This article also launches the Annals of Tourism Research Curated Collection on Peer-to-peer accommodation networks, a special selection of research in this field.
Ert, E. ; Cohen-Amin, S. ; Dinar, A. . The Effect Of Issue Linkage On Cooperation In Bilateral Conflicts: An Experimental Analysis. Journal of Behavioral and Experimental Economics 2019, 79, 134 - 142. Publisher's VersionAbstract
Bilateral conflicts, e.g., common pool resource allocation, pollution prevention, collusion of markets, or share transboundary water, often involve more than one issue that requires solution. The theoretical literature suggests that linking conflictive issues opens new opportunities for cooperation. We present a new experimental setting of bilateral conflicts, in which each issue is modeled as a separate Prisoner's Dilemma game. In two experiments, the effect of issue-linkage on cooperation is evaluated by comparing a treatment in which the two games are played sequentially (isolated treatment) with one where they are played simultaneously (linked treatment). Specifically, in the linked treatment each agent observes the payoffs from playing the different paths across games (e.g., cooperate in game1 but defect in game2) and then acts accordingly by committing to one of these paths. We differentiate the case where issue linkage implies symmetrical payoffs across games (Experiment 1), from the asymmetric case where one agent receives higher benefits from issue-linkage (Experiment 2). We find that issue linkage increases mutual cooperation and decreases mutual defection. Asymmetry reduces the level of cooperation in both isolated and linked games, yet issue linkage facilitates cooperation even when payoffs are asymmetric.
2018
Schoenbaum, I. ; Henkin, Z. ; Yehuda, Y. ; Voet, H. ; Kigel, J. . Cattle Foraging In Mediterranean Oak Woodlands – Effects Of Management Practices On The Woody Vegetation. Forest Ecology and Management 2018, 419-420, 160-169. Publisher's VersionAbstract
Vegetation structure and composition of woodlands in the Mediterranean Basin have experienced extensive land-use change during recent decades. Decline in traditional foraging by goats is leading to more closed and spatially homogeneous woody vegetation, reduced plant diversity, and increased fire risk because of accumulation of inflammable material. We studied the use of cattle foraging as an alternative to goat foraging in Mediterranean oak woodlands. Our main goal was to provide basic information on the responses of woody vegetation to cattle foraging intensity, and on the factors affecting spatial patterns of woodland utilization. We conducted the study in the Western Galilee, Israel, in oak woodland dominated by Palestine oak (Quercus calliprinos Webb.) interspersed with patches of shrubs and herbaceous vegetation. Effects of two animal population densities, moderate (0.33 cow⋅ha−1) and high (0.55 cow⋅ha−1), on the structure, composition, and regeneration potential of dense and of open woody formations were examined. Four consecutive annual seasons of cattle foraging resulted in relatively large amounts of woody vegetation removal, especially under high animal density, but had no negative effects on woody species richness or regeneration potential from saplings. The type of vegetation formation and initial state of the woody vegetation were important factors affecting the degree of change. Woody biomass removal by cattle, as shown in this study, can reduce fire hazards and increase vegetation heterogeneity and plant diversity. These findings support the use of cattle as an efficient alternative tool for multi-purpose, sustainable management of Mediterranean oak woodlands. © 2018 Elsevier B.V.
Landau, S. Y. ; Dvash, L. ; Yehuda, Y. ; Muklada, H. ; Peleg, G. ; Henkin, Z. ; Voet, H. ; Ungar, E. D. . Impact Of Animal Density On Cattle Nutrition In Dry Mediterranean Rangelands: A Faecal Near-Ir Spectroscopy-Aided Study. Animal 2018, 12, 265-274. Publisher's VersionAbstract
In the context of determining the sustainable carrying capacity of dry-Mediterranean herbaceous rangelands, we examined the effect of animal density on cattle nutrition, which is fundamental to animal performance and welfare. The effects on dietary components of low (0.56 cows/ha; L) and high (1.11 cows/ha; H) animal densities were monitored for three consecutive years in grazing beef cows. In the dry season (summer and early autumn), cows had free access to N-rich poultry litter (PL) given as a dietary supplement. In each season, near-IR spectroscopy (NIRS) was used to predict the chemical composition of herbage samples (ash, NDF, CP, in vitro dry matter digestibility (IVDMD) and metabolizable energy (ME) content from IVDMD). Near-IR spectroscopy was applied also to faecal samples to determine the chemical composition of the diet selected by the animal, as well as the contents of ash, NDF and CP in the faeces themselves. A faecal-NIRS equation was applied to estimate the dietary proportion of PL. Seasonal categories were green, dry without PL supplementation and dry with it. We found no effects of animal density on nutrition during the green season but effects were apparent when cows consumed dry pasture. Ash content predicted by faecal NIRS was higher in the diet than in plant samples clipped from pasture, which infers that cows ingested soil. Dietary and faecal ash contents were higher (P<0.05) at the H, implying greater soil intake in these animals. During the dry period, dietary contents of ME were higher in L than in H (P<0.05). Poultry litter supplementation was associated with a marked increase (P<0.01) in dietary and faecal CP contents. Poultry litter represented 0.45 and 0.59 of the diet in treatments L and H, respectively (P<0.05). Consequently, treatment H had higher faecal protein (P<0.05). A tendency of higher dietary protein (P=0.08) and lower dietary NDF (P=0.10) in treatment H was probably related to greater PL ingestion. Given that high and sustained rates of poultry litter consumption are detrimental to animal health, the above results cast doubts on the long-term sustainability of the higher of the animal densities tested. Although it may be sustainable vis-à-vis the vegetation, treatment H may have exceeded the boundaries of what is acceptable for cow health. Chemical information revealed with NIRS can be used to evaluate whether animal densities are compatible with animal health and welfare standards and can play a role in determining the carrying capacity of Mediterranean rangelands. © The Animal Consortium 2017.
Ben Abu, N. ; Harries, D. ; Voet, H. ; Niv, M. Y. . The Taste Of Kcl – What A Difference A Sugar Makes. Food Chemistry 2018, 255, 165-173. Publisher's VersionAbstract
Dramatic increase in NaCl consumption lead to sodium intake beyond health guidelines. KCl substitution helps reduce sodium intake but results in a bitter-metallic off-taste. Two disaccharides, trehalose and sucrose, were tested in order to untangle the chemical (increase in effective concentration of KCl due to sugar addition) from the sensory effects. The bitter-metallic taste of KCl was reduced by these sugars, while saltiness was enhanced or unaltered. The perceived sweetness of sugar, regardless of its type and concentration, was an important factor in KCl taste modulation. Though KCl was previously shown to increase the chemical activity of trehalose but not of sucrose, we found that it suppressed the perceived sweetness of both sugars. Therefore, sensory integration was the dominant factor in the tested KCl-sugar combinations. © 2018 Elsevier Ltd
Lerman, Z. ; Sedik, D. . Transition To Smallholder Agriculture In Central Asia. Journal of Agrarian Change 2018, 18, 904-912. Publisher's VersionAbstract
The article reviews the development of smallholder farming in Central Asia's former Soviet republics. One of the striking features of the agricultural transition in Central Asia (and Commonwealth of Independent States [CIS] in general) is the dramatic shift, since 1992, from the predominance of large corporate farms to individual or family agriculture based on a spectrum of small farms. Evidence shows that individualization of agriculture is associated with the observed posttransition recovery in Central Asia (and in CIS in general) and that small family farms outperform the large enterprises. This clashes with the traditional philosophy of economies of scale and with the inherited view of small family farms as an undesirable aberration. We discuss the policies that helped smallholder farms in Kazakhstan, Kyrgyzstan, and Tajikistan and severely restricted their growth and development in Uzbekistan and especially Turkmenistan. © 2018 John Wiley & Sons Ltd
Hochman, G. ; Hochman, E. ; Naveh, N. ; Zilberman, D. . The Synergy Between Aquaculture And Hydroponics Technologies: The Case Of Lettuce And Tilapia. Sustainability (Switzerland) 2018, 10. Publisher's VersionAbstract
This study investigates the economic and environmental value of the use of technologies that convert pollution and waste in one production process to an input in another production process. The study focuses on an aquaponics case study to show that the negative externalities borne from intensive fish farming can be internalized without regulatory intervention through a combination of fish farming and hydroponics. The introduction of aquaponics diversified the farmers' sources of income, yielded savings in the cost of water purification and the cost of fertilizer for the plants' growth, and resulted in more fish and plant output compared to the unregulated scenario. While deriving these results, we also derive a separation rule for managing live aquatic inventory, which separates expenses (which are affected by the biology of fish) and income. © 2018 by the authors.
Galkin, E. ; Dalal, A. ; Evenko, A. ; Fridman, E. ; Kan, I. ; Wallach, R. ; Moshelion, M. . Risk-Management Strategies And Transpiration Rates Of Wild Barley In Uncertain Environments. Physiol Plant 2018, 164, 412-428.Abstract
Regulation of the rate of transpiration is an important part of plants' adaptation to uncertain environments. Stomatal closure is the most common response to severe drought. By closing their stomata, plants reduce transpiration to better their odds of survival under dry conditions. Under mild to moderate drought conditions, there are several possible transpiration patterns that balance the risk of lost productivity with the risk of water loss. Here, we hypothesize that plant ecotypes that have evolved in environments characterized by unstable patterns of precipitation will display a wider range of patterns of transpiration regulation along with other quantitative physiological traits (QPTs), compared to ecotypes from less variable environments. We examined five accessions of wild barley (Hordeum vulgare ssp. spontaneum) from different locations in Israel (the B1K collection) with annual rainfall levels ranging from 100 to 900 mm, along with one domesticated line (cv. Morex). We measured several QPTs and morphological traits of these accessions under well-irrigated conditions, under drought stress and during recovery from drought. Our results revealed a correlation between precipitation-certainty conditions and QPT plasticity. Specifically, accessions from stable environments (very wet or very dry locations) were found to take greater risks in their water-balance regulation than accessions from areas in which rainfall is less predictable. Notably, less risk-taking genotypes recovered more quickly than more risk-taking ones once irrigation was resumed. We discuss the relationships between environment, polymorphism, physiological plasticity and fitness, and suggest a general risk-taking model in which transpiration-rate plasticity is negatively correlated with population polymorphism.
Perez-Sebastian, F. ; Raveh, O. . What Drives Vertical Fiscal Interactions? Evidence From The 1980 Crude Oil Windfall Act. Regional Science and Urban Economics 2018, 73, 251-268.Abstract
In economies with multi-level governments, why would a change in the fiscal rule of a government in one level lead to a fiscal response by a government in a different level? The literature focused primarily on the standard common-pool problem, while giving little attention to the potential role of complementarity or substitutability (CS) between the public goods supplied by the two governments. This paper fills this gap by focusing on the latter channel. First, we illustrate its potential key role in determining the sign of the vertical reaction through a generic model of vertical fiscal interactions. Second, we propose a novel strategy for identifying it, by considering an empirical design that confines the common-pool channel to specific locations. We implement this design through a quasi-natural experiment: the 1980 U.S. Crude Oil Windfall Act, which increased federal tax collections from sale of crude oil, thereby affecting the tax base of oil rich states specifically. This latter feature enables attributing the vertical fiscal reactions of the remaining states to the CS channel. Following this strategy, via a difference-in-differences approach, we decompose the sources of the vertical fiscal reactions arising from this federal tax change and find that those attributed to the CS channel: (i) account for approximately 38% of the overall vertical fiscal response; (ii) point at complementarity between state and federal public goods, most notably in transportation and welfare expenditures; (iii) are manifested primarily via changes in states' sales and income taxation.
Tsur, Y. ; Zemel, A. . Water Policy Guidelines: A Comprehensive Approach. Water Resources and Economics 2018, 23, 1 - 13. Publisher's VersionAbstract
We study water management in the context of a prototypical water economy containing the main water sources and user sectors. A water policy consists of water allocation from each source to each user sector at each point of time as well as the capital investments needed to carry out these allocations. We show that the optimal policy brings the water capital stocks (infrastructure and equipment) to well-specified turnpike processes as rapidly as possible and evolves along these turnpikes thereafter, eventually converging to a unique steady state. Implications for water pricing, as well as for the timing and extent of recycling and desalination activities, are discussed.
Fishman, A. ; Finkelshtain, I. ; Simhon, A. ; Yacouel, N. . Collective Brands. International Journal of Industrial Organization 2018, 59, 316 - 339. Publisher's VersionAbstract
We analyze the effect of a shared brand name, such as geographically designated agricultural brands, on incentives of otherwise autonomous firms of the same type to establish a collective reputation for product quality. When firms of the same type share the same brand name, consumers have more observations of past quality and are able to predict quality with greater precision than if brands are private. This effect increases firms’ incentive to invest in quality. On the other hand, a shared brand name may motivate free riding on the group’s reputation, reducing incentives to invest. We identify conditions under which the former effect is dominant and leads to higher quality than stand alone firms can achieve.