AEP-20306 Economics of Agribusiness

Course

Credits 6.00

Language of instruction:

English

Assumed knowledge on:

Mathematics at the level of YSS-11308

Expected knowledge on:

ECH-10306

Continuation courses:

Agricultural and Rural Policy Analysis; Economic Models

Contents:

Note for Dutch Students: Deze cursus wordt ook in het nederlands verzorgd onder de naam 'Economie van de agrarische productiekolom'.;
In this course, one or more lectures will be given about the following subjects:
- place and significance of agriculture and agribusiness in national economies;
- production and technological change;
- profit maximisation;
- supply of agricultural products;
- supply and demand of labour, capital and land in agriculture;
- income formation and - distribution;
- demand and price formation of (processed) agricultural products;
- market structure, - behaviour and - performance in the agricultural production chain;
- institutional environment and institutional arrangements in the agricultural production chain;
- agriculture and the analysis of government intervention;
- regional and international trade;
Besides these lectures, students will get familiar with the material through computer practicals and tutorials. During the computer practicals questions will be solved using economic simulation models in GAMS or EXCEL. Some problem oriented questions will be solved using the Internet as an information medium. These questions as well as some additional questions that are prepared at home will be worked out and discussed during tutorials. Finally, once a week there is a test covering the material of two chapters.

Aims:

- to obtain knowledge and insight about the functioning of the agricultural sector (as central element) and the agricultural production chain;
- to be able to recognise, analyse and explain the economic phenomena appearing in the agricultural sector and production chain;
- to obtain insight about the functioning of the institutional environment of and institutional arrangements in the agricultural sector and production chain;
- to recognise the background and effects of policies aimed at the agricultural sector and production chain;
- to be able to explain and to obtain insight about the functioning of regional and international trade in (processed) agricultural products;
- to get used with the applications and use of EXCEL, GAMS and Internet to solve and analyse relevant economic problems for the agricultural sector and production chain.

Activities:

- studying the reader;
- obtain knowledge and skills during the practicals and tutorials;
- weekly tests.

Examination:

The final grade will be based on:
- presence during computer practicals;
- the weekly test (25%);
- a written exam (75%).

Literature:

Reader "Economics of Agribusiness". The course is supported by an Educalss workplace.