Bio-based and Applied Economics <p><em>Bio-based and Applied Economics</em> is a free-access on-line journal promoted by the Italian Association of Agricultural and Applied Economics (AIEAA). Although mainly devoted to scholars and well established researchers BAE also encourages submissions by young researchers, teams involved in ongoing research projects and also relevant actors in the field of bio-economy and related public policies. BAE publishes contributions on the economics of bio-based industries, such as agriculture, forestry, fishery and food, dealing with any related disciplines, such as resource and environmental economics, consumer studies, regional economics, innovation and development economics.</p> Firenze University Press en-US Bio-based and Applied Economics 2280-6180 <p>Authors retain the copyright and grant the journal right of first publication with the work simultaneously licensed under a <strong>Creative Commons Attribution 4.0 International Public License (<a href="">CC-BY-4.0</a>)</strong>&nbsp;that allows others to share the work with an acknowledgment of the work's authorship and initial publication.</p> <p><a href="" rel="license"><img src="" alt="Creative Commons License"></a><br>This work is licensed under a <a href="" rel="license">Creative Commons Attribution 4.0 International License</a></p> Positive Mathematical Programming and Risk Analysis <p>In 1956, Freund introduced the analysis of agricultural price risk in a mathematical programming framework. His discussion admitted only constant absolute risk aversion. This paper generalizes the treatment of risk preference in a mathematical programming approach along the lines suggested by Meyer (1987) who demonstrated the equivalence of expected utility of wealth and a function of mean and standard deviation of wealth for a wide class of probability distributions that differ only by location and scale. This paper extends the definition of calibration under Positive Mathematical Programming (PMP) by considering limiting input prices along with the traditional decision variables. Furthermore, it shows how to formulate an analytical specification for the estimation of the risk preference parameters and calibrates the model to the base data within small deviations. The PMP approach under generalized risk allows also the estimation of output supply elasticities and the response analysis of decoupled farm subsidies that recently has interested policy makers. The approach is applied to a sample of farms that do not produce all the sample commodities.</p> Quirino Paris Copyright (c) 2019 Quirino Paris 2019-12-18 2019-12-18 7 3 191 215 10.13128/bae-7675 The hedonic contents of italian super premium extra-virgin olive oils <p>This study focuses on the Italian market for high quality olive oil and seeks at assessing the value of a set of emerging quality clues. To this aim a hedonic price model is proposed where the price is regressed on various product attributes using a quantile regression that allows for deeper insights. The analysis covers about one thousand Italian extra-virgin olive oils reviewed by Slow Food guide. Overall, results indicate that various quality clues (e.g.: variety of the olives, the production area, the certification of origin, the organic certification) are associated with relevant price premiums. Moreover, the quantile regression reveals the values associated to quality changes at different price levels. It is worthwhile to underline that the usual negative price premium against olive oils produced in Southern Italy tends to decrease in higher market segments.</p> Luca Cacchiarelli Anna Carbone Tiziana Laureti Alessandro Sorrentino Copyright (c) 2019 Luca Cacchiarelli, Anna Carbone, Tiziana Laureti, Alessandro Sorrentino 2019-12-18 2019-12-18 7 3 217 232 10.13128/bae-7676 Corporate R&D and the performance of food-processing firms: Evidence from Europe, Japan and North America <p>This paper investigates the impact of corporate research and development (R&amp;D) on firm performance in the food-processing industry. We apply Data Envelopment Analysis (DEA) with two step bootstrapping using a corporate data for 307 food-processing firms from the EU, US, Canada and Japan for the period 1991-2009. The estimates suggest that R&amp;D has a positive effect on the firms’ performance, with marginal gains decreasing in the R&amp;D level as well as the performance differences are detected across regions and food sectors. R&amp;D investments in food processing can deliver productivity gains, beyond the high-tech sectors generally favoured by innovation policy.</p> Heinrich Hockmann Pedro Andres Garzon Delvaux Peter Voigt Pavel Ciaian Sergio Gomez y Paloma Copyright (c) 2019 Heinrich Hockmann, Pedro Andres Garzon Delvaux, Peter Voigt, Pavel Ciaian, Sergio Gomez y Paloma 2019-12-18 2019-12-18 7 3 233 247 10.13128/bae-7677 Can menu labeling affect away-from-home-dietary choices? <p>This study aims to evaluate the impact of two menu-labeling formats on changes in dietary choices in an away-from-home meal, specifically in a university cafeteria. A field experiment at a university cafeteria in Italy was conducted providing two different types of nutritional labels. The experiment lasted four days, spread over two weeks during which a total of 930 observations were collected. During each day of the experiment, only in one food line (treated line) a label indicating the healthy options was displayed, while in the other line no label was presented (control line). The paper describes two indexes to measure how the selected food choices for each participant are in line with what suggested by the labels. We define five different classes of these indexes and we test our hypothesis using an ordered logit model. Results show the labels we provided had no significant impact on changing the tray composition, in accordance with other previous experiments suggesting that adding only nutritional information in a restaurant setting does not necessarily encourage healthier choices. The paper concludes highlighting the need of a multifaceted approach to design effective public policies enhancing healthier choices in a self-service restaurant. Specifically, the provision of nutritional information by itself can have zero or low impact unless it synergizes with others instruments such as nutritional education, social norm provision and nudges. In the conclusions, some suggestions on public policies addressing the promotion of healthy food habits are given.</p> Elena Castellari Stéphan Marette Daniele Moro Paolo Sckokai Copyright (c) 2019 Elena Castellari, Stéphan Marette, Daniele Moro, Paolo Sckokai 2019-12-18 2019-12-18 7 3 249 263 10.13128/bae-7678 A preliminary test on risk and ambiguity attitudes, and time preferences in decisions under uncertainty: towards a better explanation of participation in crop insurance schemes <p>The exposure of farmers to different (and increasing) risks has been recognized by the EU policy, which supports several risk management tools through the Common Agricultural Policy (CAP). Despite the vulnerability of the agricultural sector, and the attention paid at the EU level, the uptake of such tools is generally low across EU countries. The Italian case is emblematic: the uptake of subsidized crop insurance contracts is low, limited to few products, and concentrated in few areas. Coherently, the interest of policy makers toward explaining these characteristics and in gaining insights on the interventions that may help promoting participation is intense. This contribution investigates behavioral aspects linked to choices under risk and ambiguity, and account for time preferences in order to mimic the scenario faced by the potential adopters of the subsidized crop insurance contracts in Italy. Data are collected through questionnaires submitted to students from agricultural colleges in three administrative regions located in northern, central and southern Italy. Results show that attitude toward risk, ambiguity, and impatience are correlated with the intrinsic characteristics of respondents. In addition, some of those attitudes may help explaining decisions under uncertainty. Despite the empirical analysis is preliminary and focused on students, it allowed to validate a promising methodological approach capable of explaining farmer’s willingness to adopt (or renew) insurance contracts. By accounting for (currently under-investigated) behavioral aspects, it is likely to prove useful to re-design or implementing, more effectively, the current policies.</p> Attilio Coletta Elisa Giampietri Fabio Gaetano Santeramo Simone Severini Samuele Trestini Copyright (c) 2019 Attilio Coletta, Elisa Giampietri, Fabio Gaetano Santeramo, Simone Severini, Samuele Trestini 2019-12-18 2019-12-18 7 3 265 277 10.13128/bae-7679