@article{VALENTINOV:267949,
      recid = {267949},
      author = {VALENTINOV, Vladislav and HEIDELBACH, Olaf},
      title = {TOWARD AN INSTITUTIONAL ANALYSIS OF FARM INCOME  STABILIZATION},
      journal = {Acta Oeconomica et Informatica},
      address = {2006},
      number = {394-2018-937},
      year = {2006},
      abstract = {The objective of the paper is to compare the major  institutional mechanisms of farm income stabilization  (market, government, civil society) in order to find out  how the mutual substitution of the mechanisms can serve to  overcome their limitations. The major identified  limitations include: for the market mechanism - opportunism  and poor insurability of systemic risks; for the government  mechanism - opportunistic behavior of recipients of farm  income stabilization services, agency problems in the  implementation of public programs, high potential for  bureaucratization and excessive complexity of insurance  programs. The incentive problems of the civil society  mechanism do not include mainly those that are  characteristic of both markets and governments. However,  this mechanism possesses problems specific to cooperative  organizations. These problems have been shown to originate  from high social capital-dependence of the civil society  mechanism, which means that while these problems are able  to significantly increase transaction costs of civil  society mechanism, the actual size of these transaction  costs depends on the availability of social capital in the  respective communities. The economic context of transition  to market has been shown to create additional constraints  on market and government mechanisms and opportunities for  the civil society mechanism. Therefore, the optimal role of  the government is to invest in social capital in order to  reduce the transaction costs of the civil society  mechanism.},
      url = {http://ageconsearch.umn.edu/record/267949},
      doi = {https://doi.org/10.22004/ag.econ.267949},
}