Costa D.R.D.M.,University of Sao Paulo |
Chaddad F.R.,University of Missouri |
De Azevedo Furquim P.,FGV EESP
Revista de Economia e Sociologia Rural | Year: 2012
Contract and Organizational theories establish that complex organizations with diffuse ownership, such as agriculture cooperatives, should benefit from the separation of ownership and decision control. In developed economies, such as the USA and Canada, these organizations, aligned with the theoretical proposition, adopt governance models that promote the separation of ownership and decision rights. However, in Brazil, despite the lack ofquantitative studies that measure governance separation, anecdotal evidence suggests that ownership and decisions rights are concentrated in Brazilian cooperatives. By means of a survey with 77 Brazilian agricultural cooperatives, this paper measures the degree of de jure and de facto separation of ownership and decision control, providing new evidences on the governance models observed in different countries. Different models coexist in Brazil, i.e., although the majority of agricultural cooperatives concentrate ownership and decision rights, a significant proportion organize themselves consistently with the theoretical proposition, adopting the American models of agricultural cooperatives. Further research is required in order to address the determinants of the variety of governance models in Brazil.
Orellano V.F.,FGV EESP |
De Nes de Souza A.,FGV EESP |
De Azevedo P.F.,FGV EESP
Revista de Economia e Sociologia Rural | Year: 2013
This article analyzes the demand for ethanol in Brazil, from 2001 to 2009, taking into account regional differences in regard of relative price and per capita income. These elements explain significant variability of demand elasticities across regions, a result not yet addressed by the related literature. By means of a panel with monthly data at the state level, we estimate an econometric model with instrumental variables to control endogeneity. We found that the demand is more elastic in poorer states and in regions whose relative price is closer to 70%, the technical rate of substitution between ethanol and gasoline, which is expected to trigger the demand decision of owners of flex-fuel vehicles. Those regions present higher demand price-elasticity, for ultimately logistic and tributary reasons, that determines relative prices. Results differ from those from Salvo and Huse (2013), since our model explain regional differences that do not need to rely on consumer preference heterogeneity, but occur because of logistics and income regional distribution. Our findings suggest implications for taxation and logistic infrastructure policies, which directly affect the relative prices of ethanol and gasoline, and, therefore, indirectly influence the demand elasticity.