Understanding Efficiency of Agrarian Organisation

18 Pages Posted: 26 Dec 2009  

Hrabrin Bachev

Institute of Agricultural Economics

Date Written: December 20, 2009

Abstract

In this paper we incorporate achievements of interdisciplinary New Institutional and Transaction Costs Economics (combining Economics, Organization, Law, Sociology, Behavioral and Political Sciences) into analysis of agrarian organizations and suggest a framework for evaluating efficiency of different governing structures in agriculture. This new approach includes: study of farm and other agrarian organizations as a governing rather than production structure; assessment of comparative efficiency of alternative (market, contract, internal, hybrid) modes of governance; analysis of level of transaction costs and their institutional, behavioral (agents preferences, bounded rationality, tendency for opportunism), dimensional (frequency, uncertainty, assets specificity, and appropriability of transactions), and technological factors; determination of effective horizontal and vertical boundaries of farms, and other agrarian organizations; the specification of the economic role of the government and the effective forms of public interventions in agrarian sector. The paper provides new effective tools for improvement of agrarian public policies, farming and business strategies, and academic analysis.

Suggested Citation

Bachev, Hrabrin, Understanding Efficiency of Agrarian Organisation (December 20, 2009). Available at SSRN: https://ssrn.com/abstract=1526235 or http://dx.doi.org/10.2139/ssrn.1526235

Hrabrin Bachev (Contact Author)

Institute of Agricultural Economics ( email )

125 Tzarigradsko shosee Blvd. Blok 1
Sofia, 1113
Bulgaria

HOME PAGE: http://hrabrin-bachev.my.contact.bg/

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