Showing papers in "Applied Economic Perspectives and Policy in 2021"
TL;DR: In this paper, a negative correlation between rurality and Internet speed was found at the county level, highlighting the struggle for rural areas, while even households with service available struggle to maintain sufficient speeds and/or can afford it.
Abstract: The digital divide limits opportunities for those without ready access to Internet. Movement online of essential activities during COVID-19 took inadequate Internet service from inconvenient to emergency/crisis for many households. A negative correlation between rurality and Internet speed was found at the county level, highlighting the struggle for rural areas. Schools tackle challenges of providing equitable educational access by attempting to provide access for students, while even households with service available struggle to maintain sufficient speeds and/or can afford it. Essential activities moved online, yet sufficient Internet is an essential public service that remains unattainable for many US households.
203 citations
TL;DR: The methods underpinning MMG are described, the approach Feeding America has used to make projections about the geography of food insecurity in 2020, and how food insecurity rates may have changed due to COVID‐19 since 2018 are described.
Abstract: For a decade, Feeding America's Map the Meal Gap (MMG) has provided sub-state-level estimates of food insecurity for both the full-population and for children. Along with being extensively used by food banks, it is widely used by state- and local-governments to help plan responses to food insecurity in their communities. In this paper, we describe the methods underpinning MMG, detail the approach Feeding America has used to make projections about the geography of food insecurity in 2020, and how food insecurity rates may have changed due to COVID-19 since 2018. We project an increase of 17 million Americans who are food insecure in 2020 but this aggregate increase masks substantial geographic variation found in MMG.
167 citations
TL;DR: Survey of households during the COVID-19 pandemic reveals reductions in food-away-from-home expenditures and increases in online grocery shopping, and decreases in the importance of price and nutrition reveal tradeoffs households make during the pandemic.
Abstract: The COVID-19 pandemic has altered conceptions of ?normal? globally, including food purchasing and acquisition decisions In this paper, we surveyed a panel of 1,370 U S households four times during the COVID-19 pandemic from mid-March to late April 2020 With this unique panel, we observe changes in food expenditures, shopping behaviors, and food values as the pandemic evolved Our results reveal reductions in food-away-from-home expenditures and increases in online grocery shopping Food values appear to be fairly stable in the early stages of the pandemic;however, decreases in the importance of price and nutrition reveal tradeoffs households make during the pandemic This article is protected by copyright All rights reserved
126 citations
TL;DR: In this paper, the authors identify drivers that explain why local responses to COVID-19 vary when compared with the national dialogue on food supply chain disruptions, and suggest LFRS enterprises are nimble and connected to supply chain partners.
Abstract: Local and regional food systems (LRFS) innovated during COVID-19 to respond to market demand and policy changes. Given their unique characteristics, we identify drivers that explain why local responses to COVID-19 vary when compared with the national dialogue on food supply chain disruptions. We suggest LFRS enterprises are nimble and connected to supply chain partners, allowing them to innovate quickly with a targeted approach. Considering the shorter supply chains and smaller operations typical of LRFS, we assert the current regulatory environment's fairness and relevance may be scrutinized. In conclusion, we articulate an updated research and technical assistance agenda for LRFS.
116 citations
88 citations
TL;DR: It is concluded that the COVID-19 pandemic and its aftermath may improve household skills and management practices in a manner that reduces day-to-day household food waste.
Abstract: Perhaps no phenomenon has so quickly and radically altered household production parameters and daily food patterns as the onset of the COVID-19 pandemic. We contemplate the immediate and longer-term implications of this public health crisis on the amount of food wasted by consumers. We conclude that the pandemic and its aftermath may improve household skills and management practices in a manner that reduces day-to-day household food waste. However, pandemic-driven disruptions may induce larger intermittent purges of food due to changes in work patterns and food service and food retailing availability. We recommend several steps to reduce waste as the pandemic unfolds.
87 citations
TL;DR: In this paper, the authors argue that the COVID-19 pandemic revealed a fundamental lack of resilience in the food supply chain that, while causing short-term welfare losses, need not have happened, and resulted from a failure of vision rather than a market failure in the traditional sense.
Abstract: The COVID-19 pandemic exposed critical weaknesses in the US food supply chain. Faced with the near-complete loss of the food service distribution channel, stories of wasted food, failing suppliers, and food shortages were common. We argue that the pandemic revealed a fundamental lack of resilience in the food supply chain that, while causing short-term welfare losses, need not have happened, and resulted from a failure of vision rather than a market failure in the traditional sense. We present a model of supply chain flexibility, grounded in real options theory, that demonstrates how firms can increase shareholder value by maintaining flexibility across supply chains. We present an example from the US fresh produce industry (onions) to demonstrate our hypothesis.
80 citations
TL;DR: The extent of food hardships in the United States among adults and seniors before and during the Covid‐19 Pandemic is compared, and patterns are consistent with strong social distancing measures enacted in response to the Pandemic.
Abstract: I compare the extent of food hardships in the United States among adults and seniors before and during the Covid-19 Pandemic. Food insufficiency increased three-fold compared to 2019, and more than doubled relative to the Great Recession. Food insufficiency among seniors increased 75 percent during the Covid period, but more than doubled when including reduced intake of food varieties. Receipt of charitable foods among disadvantaged adults spiked 50 percent in the Covid period, but the initial response among seniors was a sharp reduction, before rising. These patterns are consistent with strong social distancing measures enacted in response to the Pandemic.
75 citations
TL;DR: This article analyzed surveys administered to low-skilled domestic workers before and during the pandemic to assess respondents' attitudes toward food production, guest workers, immigration policy, and the government's response to COVID-19.
Abstract: The impacts of COVID-19 on labor in the food supply chain and on workers' decisions to accept essential jobs are discussed. We then analyze surveys administered to low-skilled domestic workers before and during the pandemic to assess respondents' attitudes toward food production, guest workers, immigration policy, and the government's response to COVID-19. Results suggest the outbreak resulted in respondents, on average, shifting their view toward food being a national security issue and a higher degree of empathy for H-2A workers. Regression analysis shows that gender, current agricultural workers, and information on COVID-19 and agricultural field workers influenced respondents' answers.
69 citations
TL;DR: In this paper, the authors employ this methodology to measure food insecurity in May of 2020 and find that while there is little to no detectable rise in food insecurity for all households, the percent of households with children classified as food insecure is about three percentage points higher than it was in 2016 and 2017.
Abstract: The COVID-19 pandemic in the spring of 2020 resulted high levels of unemployment, higher food prices, and loss of business sales. This deterioration in households' financial status likely increased food insecurity in the US, but by how much? While the US government will not measure food insecurity until December of 2020, previous research has developed a methodology whereby internet surveys that can be rapidly deployed using opt-in panels can approximate government numbers. We employ this methodology to measure food insecurity in May of 2020. Results suggest that while there is little to no detectable rise in food insecurity for all households, the percent of households with children classified as food insecure is about three percentage points higher than it was in 2016 and 2017.
68 citations
TL;DR: The difference between price spreads and marketing margins is noted, corresponding economic theory is outlined, and the empirical evidence on wholesale meat and livestock price dynamics in the wake of COVID‐19 disruptions is described.
Abstract: COVID-19-related disruptions led to a historic rise in the spread between livestock and wholesale meat prices. Concerns about concentration and allegations of anticompetitive behavior have led to several inquiries and civil suits by the U.S. Department of Agriculture and the U.S. Department of Justice, with increases in price differentials serving as a focal point. This article notes the difference between price spreads and marketing margins, outlines corresponding economic theory, and describes the empirical evidence on wholesale meat and livestock price dynamics in the wake of COVID-19 disruptions. At one point during the pandemic, beef and pork packers were both operating at about 60% of the previous year's processing volume. We explore how such a massive supply shock would be expected to affect marketing margins even in the absence of anti-competitive behavior. Moreover, we document how margin measurements are critically sensitive to the selection of data and information utilized. Finally, we conclude with some discussion around policy proposals that would pit industry concentration against industry coordination and economies of scale.
TL;DR: In this paper, the authors examined the effects of the COVID-19 pandemic on outdoor recreation trips and values using revealed preference data in the context of travel cost method and found that the pandemic had negative effects on recreation visits and values, with risk-tolerant households and households with preexisting conditions taking more trips.
Abstract: This study examines the effects of the COVID-19 pandemic on outdoor recreation trips and values using revealed preference data in the context of travel cost method. Demand models are estimated using data on pre- and postpandemic trips reported in a nationwide survey of recreation participants. The models incorporate related subjective risk perceptions as postpandemic measures of site quality and account for household-level factors, pre-existing conditions, and risk tolerance. Our results suggest that the pandemic had negative effects on recreation visits and values, with risk-tolerant households and households with pre-existing conditions taking more trips.
TL;DR: In this paper, the impact of the Court of Justice of the European Union (CJEU) decision on NPBTs for countries outside the EU has been discussed and discussed extensively.
Abstract: New plant breeding technologies (NPBTs), including CRISPR gene editing, are being used widely, and they are driving the development of new crops. They are nevertheless a subject of criticism and discussion. According to a summer 2018 interpretation by the Court of Justice of the European Union (CJEU), European Union (EU) law makes most NPBTS subject to regulations governing the use of genetically modified organisms (GMOs) in the EU. The implications of this decision have been widely discussed in the literature, thereby stressing the importance of the decision for plant breeding and international trade within and beyond the EU. This contribution summarizes the status of the debate and highlights issues that have thus far not been considered—particularly with regard to the implications of EU regulations for NPBTs for countries outside the EU. We conclude that the practical implications of the CJEU decision reduce the EU’s comparative advantage and increase the cost of achieving the objectives of the European Green Deal. Our findings reveal an almost complete lack of possibilities for changing the current situation. China and countries oriented towards China are the most likely economic beneficiaries of the current situation.
TL;DR: The U.S aquaculture industry has experienced disruptions due to the global COVID-19 pandemic responses from 537 U S farms and businesses, collected through an online survey, revealed that the primary impact has been the disruption of traditional marketing channels This has resulted in a cascade of effects, including the loss of revenue, consequences for farm labor, difficulty securing production inputs and services, and management challenges from on-farm inventory of unsold fish/shellfish as mentioned in this paper.
Abstract: The U S aquaculture industry has experienced disruptions due to the global COVID-19 pandemic Responses from 537 U S aquaculture farms and businesses, collected through an online survey, revealed that the primary impact has been the disruption of traditional marketing channels This has resulted in a cascade of effects, including the loss of revenue, consequences for farm labor, difficulty securing production inputs and services, and management challenges from on-farm inventory of unsold fish/shellfish Results from the Quarter 1 survey confirm that COVID-19 has, and will continue to, negatively affect U S aquaculture for the duration of 2020, and possibly longer This article is protected by copyright All rights reserved
TL;DR: In this article, the authors examined how emerging digital technologies (e.g., mobile money, digital credit scoring, and earth observation) can reshape rural markets for savings, credit, and insurance services, especially in developing countries.
Abstract: Rural microfinance must contend with the triple challenges of isolation, small‐scale transactions, and risk These challenges result in information asymmetries and transaction costs that render markets for financial services costly or missing This paper examines how emerging digital technologies (eg, mobile money, digital credit scoring, and earth observation) can reshape rural markets for savings, credit, and insurance services, especially in developing countries Although our synthesis of the literature suggests reason for hope in all three domains, the imperfections of these digital technologies require evaluation and oversight if the resulting rural financial system is to be more efficient and equitable than its predecessor JEL CLASSIFICATION D14; F63; R51
TL;DR: In this article, the authors assess the economic and health costs of COVID and policy responses to COVID, and find that there has been underinvestment in prevention and mitigation that could have reduced the cost of adaptation and suggest that there is a lesson for climate change policies.
Abstract: We assess the economic and health costs of COVID and policy responses to COVID. Based on initial estimates of health and economic costs, social distancing policies were justified, but these estimates now seem too high because of learning by doing. Significant differences in mortality rates across US states and countries can be explained by population density, climate, exposure, and policy. Regions that were able to contain the disease early have seen fewer deaths and lower economic losses. Some developing countries initially imposed drastic, costly measures, perhaps motivated by political economy. We also find that there has been underinvestment in prevention and mitigation that could have reduced the cost of adaptation and suggest that there is a lesson for climate change policies.
TL;DR: E-commerce is rapidly diffusing in developing regions of the world as mentioned in this paper, and its share is still small even in modern retail, except in the frontrunner China, but it is developing quickly in Asia and Latin America and emerging in Africa.
Abstract: E‐commerce is rapidly diffusing in developing regions of the world. Its share is still small even in modern retail, except in the frontrunner China, but it is developing quickly in Asia and Latin America and emerging in Africa. Patterns of diffusion over regions mirror the supermarket revolution but are lagged by several decades. E‐commerce firms employ strategies to “fast‐track” their spread, responding to challenges of high transaction costs, heterogeneous consumers, and persisting importance of retail small and medium enterprises. Over the past 10–15 years, e‐commerce firms in developing regions have fast‐tracked their adaptation to these challenges by bundling services as well as partnering with retail SMEs and delivery intermediaries.
TL;DR: In this article, the authors detail how the COVID-19 pandemic has affected cattle markets and cattle producers across the different sectors, and discuss policy responses and considerations, and also discuss policy response and considerations.
Abstract: Cattle producers and markets faced massive disruptions due to COVID-19 in both supply and demand for cattle and beef Restaurant and foodservice shutdowns affected beef demand Closures and slowdowns of beef processors caused a logjam of live cattle in the supply chain The resulting impacts on cattle producers at all levels were lower prices and abnormal cattle flows, but the magnitudes of those impacts were not homogenous across size and type of cattle In this article, we detail how the COVID-19 pandemic has affected cattle markets and cattle producers across the different sectors We also discuss policy responses and considerations
TL;DR: In this article, the authors track the recent evolution of salient trade costs in agricultural and food markets and review ways to measure costs and conditions for policy prescriptions to reduce them when feasible.
Abstract: This article tracks the recent evolution of salient trade costs in agricultural and food markets. We review ways to measure costs and conditions for policy prescriptions to reduce them when feasible. We pay attention to transportation costs, border measures, and standard-like nontariff measures. By pointing out limitations in current approaches and recent developments, we hope to improve our understanding of their effects. We suggest promising directions for further research and investigation of agricultural trade costs, including on the emerging debate on gene-editing and trade, transportation costs, and mainstreaming recent approaches in disentangling effects of trade costs on supply, demand, trade, prices, and welfare.
TL;DR: In this article, the importance of recognizing and accounting for the essential role of food supply chains when designing policy and interventions, particularly in response to COVID-19, and provides recommendations for action based on current realities.
Abstract: Food supply chains are extremely important for food access and livelihoods across Africa, but their role is often overlooked and underappreciated Under normal conditions, the gap between myth and reality can result in the design of policies and programs with limited or negative impacts on food security and welfare The shock of COVID-19 has heightened this disconnect, with potentially dire consequences for food security This paper demonstrates the importance of recognizing and accounting for the essential role of food supply chains when designing policy and interventions, particularly in response to COVID-19, and provides recommendations for action based on current realities
TL;DR: It is found that the effectiveness of local approaches appears to depend on: (i) cross‐sector collaboration, (ii) supply chains, and (iii) addressing gaps in service to increased risk populations.
Abstract: As lockdown and school closure policies were implemented in response to the coronavirus, the federal government provided funding and relaxed its rules to support emergency food provision, but not guidance on best practices for effectiveness. Accordingly, cities developed a diverse patchwork of emergency feeding programs. This article uses qualitative data to provide insight into emergency food provision developed in five cities to serve children and families. Based on our qualitative analysis, we find that the effectiveness of local approaches appears to depend on: (i) cross-sector collaboration, (ii) supply chains, and (iii) addressing gaps in service to increased risk populations.
TL;DR: In this paper, the authors test whether changes in the unemployment rate affected H2A guest worker demand before the pandemic and find a statistically significant negative impact, and conclude that H-2A recruitment will be vital to sustaining agricultural production.
Abstract: An outbreak of COVID-19 among farmworkers could have significant impacts on the workers, agricultural producers, and the consumers. Farmers are implementing new labor management practices to slow the spread of the virus among workers. Since immigration is temporarily restricted, farmers may have difficulty securing a sufficient workforce. We test whether changes in the unemployment rate affected H-2A guest worker demand before the pandemic and find a statistically significant negative impact. Nevertheless, we expect that H-2A recruitment will be vital to sustaining agricultural production. We conclude by discussing potential long-term impacts of the pandemic on farm labor supply and demand.
TL;DR: There are encouraging signs for the renewable energy industry that could make COVID‐19 a cloud with a silver lining; whether this is the case will depend not only on the technological realities and social response to the crisis but also on political will and foresight.
Abstract: COVID-19 has led to an unprecedented reduction in demand for energy for transportation and electricity, a crash in prices and employment in the fossil fuel industries and record-breaking reductions in global carbon emissions. This paper discusses whether this "demand destruction" could spell the beginning of the end for fossil fuels or a temporary recession and the imperative to recover from the current crisis by "building back better" and not the same as before. There are encouraging signs for the renewable energy industry that could make COVID-19 a cloud with a silver lining; whether this is the case will depend not only on the technological realities and social response to the crisis but also on political will and foresight.
TL;DR: In this article, the authors econometrically estimate the effects of COVID-19 on fruit and vegetable production as the US agricultural labor supply is adversely affected by this pandemic.
Abstract: COVID-19 has had unprecedented effects on the US economy, in large part because of its effects on workers. Within food and agriculture, these effects pose the greatest threat to the production of labor-intensive commodities-in particular, fruits and vegetables, the production of which tends to require large numbers of workers for harvesting and packing. We econometrically estimate the effects of COVID-19 on fruit and vegetable production as the US agricultural labor supply is adversely affected by this pandemic. The major crop losses include $16 million in lettuce, $5 million in apples, and $4 million in grapes.
TL;DR: Priority Academic Program Development of Jiangsu Higher Education Institutions (PAPD); National Science Foundation of China National Natural Science Foundation (NSFC) [71934005, 71903090]; Office of the Chief Economist [58-0111-19-013]
Abstract: Priority Academic Program Development of Jiangsu Higher Education Institutions (PAPD); National Science Foundation of ChinaNational Natural Science Foundation of China (NSFC) [71934005, 71903090]; Office of the Chief Economist [58-0111-19-013]
TL;DR: In this article, the authors estimate the impact of involuntary unemployment following employer shutdowns during the COVID-19 pandemic on American households' past-week food expenditures, free food receipt, and food sufficiency, as well as confidence about next month's food adequacy over April to June 2020.
Abstract: We estimate the impact of involuntary unemployment following employer shutdowns during the COVID-19 pandemic on American households' past-week food expenditures, free food receipt, and food sufficiency, as well as confidence about next month's food adequacy Over April to June 2020, compared with households containing employed respondents, households with respondents who lost their jobs due to coronavirus-induced firm closures spent 15% less on food, were 36% more likely receive free food, were 10% less likely to have enough food to eat, and were 21% less likely to report at least moderate confidence in their future ability to afford needed foods JEL CLASSIFICATION I12;J21;J63
TL;DR: In this paper, the authors show that requiring 100% on-site human supervision almost wipes out the economic benefits of autonomous crop equipment for small and medium farms and increases the economies-of-scale advantage of larger farms.
Abstract: Autonomous equipment for crop production is on the verge of technical and economic feasibility, but government regulation may slow its adoption. Key regulatory issues include requirements for on-site human supervision, liability for autonomous machine error, and intellectual property in robotic learning. As an example of the impact of regulation on the economic benefits of autonomous crop equipment, analysis from the United Kingdom suggests that requiring 100% on-site human supervision almost wipes out the economic benefits of autonomous crop equipment for small and medium farms and increases the economies-of-scale advantage of larger farms.
TL;DR: In this paper, the authors assessed whether knowledge of a person infected with COVID-19 is associated with food insecurity, job loss and business closures, and coping strategies to smooth consumption.
Abstract: The COVID-19 pandemic prompted social distancing, workplace closures, and restrictions on mobility and trade that had cascading effects on economic activity, food prices, and employment in low- and middle-income countries. Using longitudinal data from Bangladesh, Kenya, and Nigeria covering a period from October 2020 to April 2021, the paper assesses whether knowledge of a person infected with COVID-19 is associated with food insecurity, job loss and business closures, and coping strategies to smooth consumption. The likelihood of households to experience food insecurity at the extensive and intensive margins increased among those who knew an infected person in Bangladesh and Kenya.