This paper examines ways in which development policies interact and influence incentives for agricultural expansion in frontier areas. We develop a model of household response to economic and technical stimuli, conditional on agronomic and household characteristics. We evaluate the model empirically using survey data gathered from low-income corn and vegetable farms near a national park in the southern Philippines. We find that within farms, land allocation is responsive to relative crop prices and yields. However, different crops elicit different responses. In particular, some crop expansion takes place primarily through land substitution and intensified input use, while changes in prices or yields of other crops induce an expansion of total farm area. Land and family labor constraint bind at different points for different crops. These results suggest that because multiple policies interact, environmental policies must have multiple strands in order to replace incentives to further land expansion.JEL codes: Q12, Q24, O13.
Using high-frequency job advertisement data, this paper evaluates dynamics among COVID-19, labor market, and government policies. We find that COVID-19 has caused a significant decline in labor demand, by as much as 30%, measured by the number of job advertisements. But the pandemic did not result in noticeable changes in advertised wages. Regarding the roles of government policies, the study finds that the “stay-at-home” measures implemented by states appeared to suppress labor demand. The Paycheck Protection Program (PPP) program helps to stabilize the advertised wages, but also suppresses labor demand. Finally, the pandemic may increase labor demand for certain healthcare-related occupations.
An ex ante evaluation of factors affecting farmers' land use is presented, using surveyed data gathered from low-income maize and vegetable farmers in a southern Philippines watershed at the forest margin to measure how land and labour allocations for various crops respond to changes in expected output prices, expected yields or price or yield volatility in land use and land expansion. Recent land use trends and policies in Lantapan, Bukidnon that have influenced resource allocation at the agricultural margin are reviewed. Data were analysed using econometric methods. Results that might contribute to answering the question, 'Do investments in agricultural productivity for upland farms promote deforestation?' are discussed.
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