Another issue of Agriculture and Human Values is ready

The latest issue of the academic journal I edit, volume 34, issue 2, of Agriculture and Human Values, has just been published online (here).

A brief summary of the articles in this issue is as follows: Sippel et al assess the nature and impact of the financialization of farmland in Australia. Hill and Raster evaluate the rights of the Ojibwe people in Minnesota to control access to and use of wild rice fields in the face of appropriation by university researchers and others seeking to develop hybrid and genetically modified rice varieties. Mills et al examine factors affecting the willingness and ability of farmers to adopt environmental management practices. Clark et al report on perspectives of cooperative extension educators about food system change. Lyon et al assess the impact on women of their increasing participation rates in fair-trade coffee production in Oaxaca, Mexico. Roesch-McNally et al report on a survey of Midwest US farmers to determine factors affecting their intention to adapt farming practices in response to climate variability. Sumner et al study gender differences in the practice of conservation agriculture of smallholder farmers in Cambodia. Liu et al assess the community-building aspect of community supported agriculture in China and the UK. Orozco-Ramírezab and Astier study socio-economic factors expected to affect the genetic erosion of local maize varieties in Mexico. Bergstra et al assess the attitudes of different stakeholder groups in the Netherlands toward specific pig husbandry practices. Mars and Schau examine the role of entrepreneurship in facilitating local food system initiatives. Mason et al use a gendered mobilities framework to understand better how the movement of men and women in rural Tanzania affect their level of food security. Galt et al report on a survey of members of a community supported agriculture project in California to assess how member income affects participation and other considerations. Adolwa et al study how agricultural innovations are disseminated in two farming regions of Kenya and Ghana. Helliwell and Tomei assess the environmental stewardship implications of EU goernance policies on the biofuel industries in the UK and Guatemala. Sarmiento reviews and describes different strands of literature on alternative food networks.

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Paying more for airline passengers to give up seats

In a previous blog post about the mishandling by United Airlines of a passenger that had already boarded the plane, I suggested the following thought experiment: “Suppose United offered $10,000 to each person who gave up their seat. I suspect most passengers sitting on the plane would have volunteered.”

The next day, AP News reports that “Delta OKs offers of up to $9,950 to flyers who give up seats.”

This must be just a coincidence.

A United case for free markets and clearly defined rights

A lot has been written and said about United Airlines and their mishandling of a problem of overbooking. In case anyone missed the story, a United Airlines flight was overbooked. The airline also needed to fly crew members to the plane’s destination. The airline asked for volunteers to give up seats and even offered some money as an inducement, but that wasn’t enough. So the airline randomly selected passengers to remove involuntarily. Three agreed to leave the plane but one refused. The airline called airport police, who forcibly removed the passenger. Photos and videos of the passenger being dragged out of the plane caused worldwide criticism of the incident and airline. There are numerous memes floating on the internet now inspired by the event.

I am not going to criticize the airline or defend it. Others are doing that. However, I think the story provides an ideal case for illustrating two important economic principles: the superiority of free markets and the importance of clearly defined property rights.

First, economic systems determine how scarce resources are allocated. There are different ways of doing this. One involves free markets, where the exchange of money determines how resources are reallocated. Another involves various forms of command and control, where government or other entities dictate who does what and what goes where.

The airline had (some may say created) a problem of scarcity. There were more people who needed seats than there were seats available. A free market solution to the problem is simple: offer enough money to induce people to voluntarily give up their seat. Here is a thought experiment. Suppose United offered $10,000 to each person who gave up their seat. I suspect most passengers sitting on the plane would have volunteered. The airline said it offered compensation (the WSJ article linked above states that the airline offered up to $1,000). Clearly, the airline did not offer enough. In a free market environment, if the buyer values the resource more than the holder of the resource does, then an efficient exchange can occur if the buyer offers more than the seller’s value. If it was worth more than $1,000 a seat to United to get a crew member on the plane, then the airline should have offered more. If it was not worth more than $1,000, then the airline should not have pursued the matter further. That is the simplicity of the free market.

When there is command and control, such as when the government decides who flies and who doesn’t, then the government uses the power of the state to enforce its preferences, which we saw clearly here when the airline utilized police to drag an unwilling passenger off the plane. If the airline had utilized market principles, then there would have been no incident worth reporting. Stated differently, when markets function well (and when they are allowed to function well), then there is almost never a story to report. I find that interesting.

Second, when there is confusion about property rights, then there will be conflicts. People who buy plane tickets, either with a seat assignment or who are sitting in a seat, believe they have rights to the seat on the plane. In contrast, airlines not only can overbook but also can involuntarily deny boarding of passengers and even tell passengers they have to get off the plane, suggesting the airline believes it has rights to the seat on the plane. (Anyone interested can read United’s Contract of Carriage document here, especially rule 25, which describes what the airline’s obligations and rights are with respect to “denied boarding compensation”).

Regardless of whether passengers or airlines actually own rights, it is the beliefs they hold that matter most here. If passengers believe they have rights to the seat and if airlines believe they control those rights, then there will be a conflict when there is a problem of overbooking (that is, economic scarcity). Markets won’t work well here because there is no basis for determining who should pay and how much, since there is uncertainty about who initially owns the right to be transferred. If the airline believes it has the right, then it doesn’t need to offer any compensation. It can just drag unwilling passengers off the plane and place other passengers in the vacated seats.

The Nobel winning economist Ronald Coase described this problem and pointed to a solution: make clear who has rights to the seat. According to the Coase Theorem, bargaining is efficient when property rights are clearly defined and when bargaining is reasonably feasible. Airlines have demonstrated that bargaining for overbooked seats can work if they just offer enough compensation, suggesting they effectively acknowledge the beliefs of passengers that passengers hold rights to seats they have paid for, regardless of what their overbooking rules say.

The lesson here is therefore simple. If airlines are going to overbook their flights, then they should be prepared to pay passengers enough to induce volunteers to vacate their seats on the plane.

The connection between strong families and secure property rights

While doing background reading for a research project I am conducting, I came across a book by Bertrand Russell entitled Marriage and Morals, which he published in 1929. The purpose of the book is to advocate a new way of thinking about marriage and sexual morality.

Russell is a too liberal for my liking, and he doesn’t hold a high opinion of religion. For example, he gives two objectives for the book. The first is “to eliminate the elements of superstition” or religion in defining what sexual morality ought to be. The second is “to take account of those entirely new factors which make the wisdom of past ages the folly instead of the wisdom of the present.” Here he refers to things like contraception and other “modern discoveries” that supposedly enhance the sexual freedom of people by removing the worry of creating an unwanted child or experiencing other concerns. At one point in the book Russell laments that people still have “fears” that are “irrational,” because of the “failure of psychological adaptation” to the new morality he advocates.

While I disagree with the overall message of the book, Russell makes a rather interesting observation about the importance of the family and the connection between family and secure property rights. In the first chapter, Russell states that one of the most important reasons that people engage in economic activity is to provide food and other benefits not merely for themselves but “for the sake of the family”. He then says that “as the family system changes, economic motives also change.” For example, without a family there is little motive for an adult to purchase life insurance. Moreover, “most forms of private saving would nearly cease if children were taken away from their parents and brought up by the State as in Plato’s Republic; that is to say, if the State were to adopt the role of the father, the State would, ipso factor, become the sole capitalist.” He continues by saying “that if the State is to be the sole capitalist, the family, as we have known it, cannot survive … [for] it is impossible to deny an intimate connection between private property and the family, a connection which is reciprocal.”

In other words, we need private property for the good of the family, and we need family for the preservation of property rights. If property rights are weakened, then we weaken the family. If the family is weakened, then we lose the basis for protecting private property. One feeds the other. In the extreme, if family is incapable of properly rearing children–or if the government claims that the family cannot effectively raise children–so that the State must take over that responsibility, then the power of government to take and control property will be at its greatest. I should add that Russell was an admirer of the Soviet Union, although he never fully embraced communism.

I’ve never thought about the connection between family and property rights until now. I find the connection very interesting. Implications? Well, if you believe in the importance of family, then fight to preserve rights to property. And if you believe in the importance of protecting private property, then fight for strong families. We need both for a stable and healthy society.

Declining moral values in the U.S.

An important area of research for me involves the study of how moral values relate to economic conditions of society and the well-being of individuals. For example, a few years ago I published a study (here) describing how to measure the generalized morality of countries, and I linked that measure to economic conditions within countries. Currently I am trying to understand trends in moral values and how and why they change over time.

It is not uncommon for people to bemoan a decline in moral values. For example, in 2015 a Gallup Poll (here) found that “Most Americans (72%) continue to believe the state of moral values in the U.S. is ‘getting worse,’ while 22% say it is ‘getting better.'” But is there evidence supporting the ‘decline in moral values’ story? Yes, at least in the United States.

I like working with a database called the World Values Survey, which is a compilation of face-to-face interviews with adult citizens ages 18 and older conducted in many countries around the world. Respondents are asked many questions about what they believe, such as perspectives about religion, politics, social values, and so forth. The survey is conducted in multiyear waves about every five years or so. It began in 1981. The most recent wave in which data is available (number 6) began in 2010 and involves work in 57 countries around the world with more than 85,000 respondents. The organization behind the study is currently preparing for the next round of studies.

Note the following two charts for respondents in the United States. The data are reported for each of the six waves. The number of respondents in each wave is at least 1,000 (and so allows for meaningful statistical analyses).

Social trends

This first chart (‘trends in social values’) shows the percent of people who believe that different social issues are not justifiable. There is a clear downward trend. If these represent genuine moral values, then here is the evidence. I could add others. For example, in 1981, 69 percent of people believed that prostitution was not justifiable, but in 2005 the number declined to 47 percent.

Economic trends

This next chart (‘trends in socio-economic values’) shows the percent of people who believe that certain actions by individuals are not justifiable. There is also a downward trend, although it is not as pronounced as is the case for social values. I call these ‘socio-economic values’ because I use them to construct my measure of ‘generalized morality’ mentioned above.

Why is there a decline in moral values? Well, that’s the million dollar question. While we can easily point to correlations, identifying causality is notoriously difficult in social science research. But sometimes correlations suggest patterns and plausible explanations. For example, declining religiosity and confidence in churches might be an explanation. Religions have traditionally played a major role in articulating moral standards in society. If people become less religious and are less tied to churches over time, then that might explain why moral values decline.

Religion

Consider this chart (‘importance of religion’), which shows various indicators of religiosity. While most people in the United States continue to believe in God (almost 90% according to the most recent wave of the World Values Survey), they are becoming less connected to Him. For example, only about 60 percent of people believe that God is important to them. There is also an alarming decline in confidence in churches. In 1981, 46 percent of people had a lot of confidence in churches, but in 2010 the percent had declined by more than half to 19 percent. If we don’t trust our churches then we will not trust what is taught there, such as being moral and having high moral standards.

At the risk of being accused of confusing correlation with causation and overlooking the many complicated factors affecting moral values in society, I am tempted to call this one. We need a spiritual and religious revival in the United States if we want to see a reversal of declining moral values in society. We need to go back to church. We need to listen to preachers and Sunday School teachers. We need to study scriptures and pray and do other religiously meaningful things. If we believe in God, then we need Him to be important to us. Why not. We’re important to Him.

The latest issue of Agriculture and Human Values is in print

TheAHV_10460 latest issue of the academic journal I edit, Agriculture and Human Values, has just been published. This is the official journal of the Agriculture, Food and Human Values Society. The table of contents to issue 1 of volume 34 is here.

A brief summary of the articles in this issue is as follows: Fouilleux and Loconto examine the conventionalization of organic agriculture through the perspective of tripartite standards regime of governance. Jones et al examine the perceptions of students from developing countries about agriculture as an occupation. Contzen and Forney introduce a typology of farm family configurations in a study of Swiss farming. Mann and Bonanomi offer a framework for assessing the ethical implications of large-scale land acquisitions in developing countries. Papaoikonomou and Ginieis assess the transformative nature of local food systems by focusing on the practices, narratives about and governance characteristics of CSAs in Spain and New York City. Arcari uses discourse analysis to examine how meat and animals are discussed and framed in debates about animal agriculture. Stone and Glover use the lens of embeddedness to examine “rice worlds” of the Green Revolution, Golden Rice and heirloom landrace rice. Kurth and Glasbergen examine the effectiveness of halal certification organizations in a study focusing on the Netherlands. Bellante uses a case study of a local food movement in Mexico to provide a more balanced view of their advantages and limitations. Poulsen examines the degree to which urban farms are able to overcome critiques about civic agriculture. Desmarais et al document changing land ownership patterns in Canada. Zepeda and Reznickova describe the evolution of a Slow Food movement at the University of Wisconsin. Additionally, Jennifer Clapp, S. Ryan Isakson and Oane Visser introduce a collection of four papers on the complex dynamics of agriculture as a financial asset. The issue also contains book reviews and a list of books received.