Helge Berglann

Research Scientist

(+47) 976 72 986
helge.berglann@nibio.no

Place
Ås O43

Visiting address
Oluf Thesens vei 43, 1433 Ås

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Abstract

Income comparisons between farm and non-farm households play a crucial role in many aspects of farm policy. Using household income data from tax returns of all Norwegian taxpayers in the period 2006–2015 we study these income differences. We find that the unconditional mean income is higher for farm households, but with important differences depending on the comparison group considered. We also find that the income difference is reduced when we control for differences in the personal characteristics of the different non-farm comparison sub-groups. This finding implies that income comparison using unconditional means, as frequently done in agricultural policy making, is potentially misleading. We also show that the income effect of personal characteristics is not the same for different comparison sub-groups, as has been assumed in previous studies of income disparities. Differences in personal characteristics, and the income effect of those characteristics, therefore need to be accounted for if income comparisons between farmers and non-farmers are to inform farm support policies.

Abstract

This article considers the use of convex taxation as an instrument to regulate fisheries, comparing it with linear taxation with regards to economic yields and the risk of resource depletion. Convex taxation is shown to be central in studies with static models but has rarely been explored in the context of dynamic fisheries. Literature shows that a linear tax regime is superior to quantity regulation when the stock estimate is uncertain in terms of economic gains and its ability to prevent resource extinction. Furthermore, when cost uncertainty is involved, a strictly convex tax on landings can prove even more efficient. A numerical example with a single-species demersal fishery having both ecological and economic uncertainty demonstrates the gain in value of moving from a linear to a strictly convex tax.