Search

Sin tax is essential to reduce the harm caused by products like cannabis. However, excessive taxation may facilitate illicit markets. We examine sin tax policies' impact on legal and illicit cannabis markets in the selected US states. Using a Constant Elasticity of Substitution utility framework, we assess scenarios like sin tax increase and anti‐illicit cannabis policies. Our findings indicate high sin taxes may drive consumers to illicit markets, but anti‐illicit market policies could control its extent. However, there is a trade‐off between market size, tax revenue, consumers' utility, and illicit market control. Thus, optimizing sin tax policies is challenging, necessitating a second‐best approach. [ABSTRACT FROM AUTHOR]

By examining the econometric interrelationships of rice export prices of India, Thailand, Vietnam, Pakistan, the U.S. Argentina, Brazil, and Uruguay, this study examines the most influential rice-exporting countries in the international rice export market. The sampled countries are the source of more than 80% of the global rice exports. In the process, this study relies on online data portals of the United Nations and country-level sources for aromatic and non-aromatic rice export price information from India, Pakistan, and Thailand. This study employed the Prais-Winsten and Autoregressive Distributive Lag (ARDL) estimation processes with the error correction procedure. Combining the findings from both models, this study concludes that in terms of interactions, the non-aromatic long-grain rice price of the U.S. and the aromatic rice price of Pakistan are the most correlated prices in the international rice market. Considering the number of countries influenced by the price of a given country, our results indicate that Vietnam is the price leader in the non-aromatic long-grain market, followed by Argentina, Brazil, and India. India, the largest exporter, is the fourth top price leader. In the case of aromatic rice, Thailand is the absolute leader. Many countries in Asia and Africa rely on rice imports to meet domestic demand, where the food security situation is already precarious. Based on the findings, this study suggests closely monitoring rice production and export trends of Vietnam, Argentina, Brazil, India and Thailand to provide early warning when necessary to better manage supply shocks in the international rice market. [ABSTRACT FROM AUTHOR]

Owing to the inadequacy of the public extension services, farmers in developing countries often rely on the suggestions of agricultural input traders. As profit‐making agents, these traders, in their turn, may have an incentive to exploit farmers by suggesting relatively expensive inputs. In this study, the Endogenous Switching Regression (ESR) estimation method is applied to demonstrate that input traders in many ways play the substitute role of the public extension agents in a developing country. In the process, this study relied on primary information collected from 379 farmers in Bangladesh in two seasons (N = 758). Then the ESR estimation procedure is applied to predict farmer's expenditure on pesticides, conditional on whether or not they rely on traders' advice. Findings of this study suggest that pesticide expenditures are not statistically different between the farmers that rely on traders' suggestions and those that do not. The study thus concludes that by providing unbiased, useful information to the client farmers, profit‐maximizing agricultural input traders render the services of public extension workers, which corrects possible market failures. [ABSTRACT FROM AUTHOR]