bluuebunny/crossref_metadata_2025 huggingface dataset:
A Linear Programming Approach to Floodplain Land Use Planning in Urban Areas
Authors: Day John C.
Published: July 2006

Floodplain land use management is a new approach to flood loss prevention which will complement engineering works and lead to more intelligent use and development of urban floodplain areas. Land use management may be structured as an optimization problem. Nonlinear or dynamic programming is inappropriate, and a linear programming assignment model is shown to be capable of identifying constrained efficiency combinations of spatial and temporal urban floodplain use, site elevation through land fill, and floodproofing of buildings. Sensitivity testing, however, is required because of possible nonlinearities.
On the Timing and Application of Pesticides
Authors: Hall Darwin C. , Norgaard Richard B.
Published: July 2006

The model developed by J. C. Headley to illustrate the entomologists' concept of the economic threshold is presented and criticized. A two‐variable model directed at the problems of optimal timing and pesticide application as well as optimal pest population level is presented.
Efficiency Considerations in Butterfat Differential and Component Pricing of Milk
Authors: Jacobson Robert E. , Walker Francis E.
Published: July 2006

Producer prices for milk generally reflect only differences in butterfat content as an explicit measure of value. This paper demonstrates that such a pricing system results in inequitable payments to producers. A component pricing approach that includes component values is then suggested.
The Role of Sectoral Technical Change in Development: Japan, 1880–1965
Authors: Yamaguchi Mitoshi , Binswanger Hans P.
Published: July 2006

The goal of this study is to understand and measure the effect of differential rates of technical change in the agricultural and nonagricultural sector on per capita income growth and sectoral allocation of income and factors of production. A fairly simple dynamic general equilibrium model with an agricultural and nonagricultural sector was constructed along neoclassical lines (but including labor market imperfections) and applied to Japanese data from 1880 to 1965. Nonagricultural technical change contributed more to per capita income growth than agricultural technical change. The latter also tends to push resources, particularly labor, out of the agricultural sector.
Analyzing Hog Production Strategies with a Simulation Model
Authors: Blackie Malcolm J. , Dent J. Barry
Published: July 2006

Simulation modelling has attracted considerable farm management research interest in recent years, yet the on‐farm use of simulation models has been limited. A simulation model for hog production has been developed as part of an information system which may assist hog farm managers both in choosing between competing management strategies and also in implementing any chosen plan. The process involved in selecting the most suitable management strategy is illustrated using data from several hog units. The incorporation of the model into an information system ensures that the model is accessible to farm managers and their advisers.
A Risk‐Programming Analysis of Forward Contracting with Credit Constraints
Authors: Barry Peter J. , Willmann David R.
Published: July 2006

A multiperiod risk‐programming model is developed to evaluate forward contracting and other financial choices for farmers who are subject to market risks and external credit rationing. The model utilizes mean‐variance analysis to derive sets of E‐V efficient growth plans reflecting the influence of contracting on income stability, levels of credit, and income growth. A case farm is used to develop the model's decision elements and to survey the credit responses of lenders to contract choices. Model results indicate that the lenders' credit responses may modify the producer's contracting plans and his rate of income growth.
A Model of a Bargaining Cooperative
Authors: Ladd George W.
Published: July 2006

This paper analyzes behavior of a cooperative of raw material producers. The cooperative sells a production input to producers, provides a “free” service to members, and bargains with processors for raw material price. One analysis assumes the cooperative's objective is maximization of the raw material price received by members. Another assumes the objective is maximization of quantity marketed through the cooperative. The cooperative has three instruments to manipulate to attain its objective. First‐order maximization conditions for the two objectives are quite different from each other and from “marginal cost equals marginal revenue” conditions.
Graduate Programs in Agricultural Economics: Results of a Survey
Authors: Storey David A. , Storey David A.
Published: July 2006

A 1970 mail survey of U. S. and Canadian agricultural economics departments attempted to identify new approaches to graduate education. Areas explored included program objectives, requirements, and procedures. Some evolutionary changes in specific requirements and procedures were identified, although few revolutionary changes in orientation were discovered.
Sparse Data, Climatic Variability, and Yield Uncertainty in Response Analysis
Authors: Anderson Jock R.
Published: July 2006

A method based on smoothing sparse data is developed for assessment of risk in crop response processes when only few data are available. An empirical example illustrates how optimal inputs depend on degree of risk aversion when controlled inputs influence risk.
Effect of Public Price Forecasts on Market Price Variation: A Stochastic Cobweb Example
Authors: Smyth David J.
Published: July 2006

This paper analyzes the effect of less than perfectly accurate forecasting in a stochastic cobweb model when public announcement of the forecasts influences suppliers' behavior. The forecasts considered in the analysis reduce the time variance of price, but the forecasts that minimize the variance are not always the most accurate.
On Some Determinants of Farm Size Across Countries
Authors: Huang Yukon
Published: July 2006

Several measures of average farm size are developed, using resource endowment, degree of industrialization, factor proportions as the explanatory variables for 53 countries. The three determinants explain much of the variation in average farm size, using cross‐sectional regression techniques.
Market Solutions to Externality Problems: Theory and Practice
Authors: Randall Alan
Published: July 2006

The concept of market solution to externality problems has received the favorable attention of many economic theorists. Yet, policy practitioners and the general public seem less enthusiastic. Theoretical studies and available empirical work have effectively demolished Coase's doctrine of the allocative neutrality of liability rules. In reality, a full liability law will result in a greater degree of abatement of external diseconomies than will zero or intermediate liability laws. It is suggested that market solutions can be seriously considered in a world with pervasive externalities only if something approaching a full liability rule is established. Even then, excessive transactions costs may limit the success of market solutions.
Information, Power and Academic Responsibility
Authors: Randall Alan
Published: July 2006

The provision of information, no matter how objective, influences power relationships in an economy. Thus, scientific activity is non‐neutral in its effects on the outcome of economic interaction. Therefore the researcher and his host institution cannot avoid moral choices as to what research is performed, what information is provided, and to what use that information is put.
Market Intermediaries and Price Instability: Some Welfare Implications
Authors: Bieri Jurg , Schmitz Andrew
Published: July 2006

The welfare consequences of price instability critically depend on the type of market intermediary. Both a producer marketing board and a pure middleman will stabilize consumer prices; but the latter, unlike the producer marketing board, will find it advantageous to “manufacture” price instability for producers.
Social Cost of Alternative Dairy Price Support Levels
Authors: Buxton Boyd M. , Hammond Jerome W.
Published: July 2006

Government cost is important in fixing milk price supports; however, net social cost should also be a criteria. This paper develops a method of measuring the latter. The technique is applied to alternative support levels under conditions of exporting or destroying government purchases and under a condition of domestic redistribution.
An Analysis of the Impact of Manure Disposal Regulations on Dairy Farms
Authors: Ashraf Muhammad , Christensen Robert L.
Published: July 2006

State regulations concerning animal waste disposal can be satisfied by the adoption of alternative manure disposal systems. A linear programming analysis of 25 dairy operations in Massachusetts shows that significant reductions in farm income and changes in optimum farm plans result when these systems are imposed upon the dairy business.
Modeling the Optimal Location of the Cattle Feeding Industry
Authors: Byrkett Donald L. , Miller Richard A. , Taiganides E. Paul
Published: July 2006

A variety of interregional linear programming models have been used to study the optimal location of the cattle feeding industry. An analysis is performed to determine which factors are most influential in determining feedlot location and thus need to be included in these models. In addition to traditional factors, consideration is given to the effects of region definition and regional land use patterns. Results indicate the importance of feeders, grain, and land use patterns. The implications of these results in the analysis of future trends in feedlot location is discussed.
Framework for Economic Analysis of Grain versus Harvested Roughage for Feedlot Cattle
Authors: Brokken Ray F. , Dinius D. A. , Hammonds T. M. , Valpey John
Published: July 2006

Traditional models for assessing technical and economic efficiency of cattle feeding were found inadequate. An alternative framework is developed for estimating effects of changes in ration nutrient concentration on animal performance under a range of production conditions and types of animals. The framework is incorporated in a dynamic profit function and its use discussed and demonstrated under various optimizing criteria. High energy rations remained economical even at relatively high grain prices. This framework implies sigmoid shaped grain‐roughage isoquants: concave to the origin over the finishing range of grain‐roughage ratios, and convex at lower grain‐roughage ratios.
Economic Aspects of Ground Water Resources and Replacement Flows in Semiarid Agricultural Areas
Authors: Gisser Micha , Mercado Abraham
Published: July 2006

This article integrates an agricultural demand function for water with a hydrologic model of an aquifer in a semiarid region. The model can aid policy‐makers with problems from overdraft leading to a falling water table and with examination of the profitability of importing water from surplus areas and artificially recharging the aquifer.
Projections of Effects of Modern Inputs on Agricultural Income and Employment in a Community Development Block, Uttar Pradesh, India
Authors: Wills Ian R.
Published: July 2006

While the green revolution has increased food production, its effects on rural employment and income distribution are causing concern. This paper presents empirically based estimates of the impact of new technology on employment and incomes at the local level. Results indicate that although adoption of new sceds, fertilizers, and irrigation increases employment and agricultural wages, it also increases the disparity between incomes of farmers and agricultural laborers, a disparity which will increase further if labor‐saving machinery is introduced. New technology will reduce the disparity between incomes of large and small farmers ir credit and fertilizers are distributed according to area operated.
A Bioeconomic Simulation Analysis of Regulating Groundwater Irrigation
Authors: Mapp Harry P. , Eidman Vernon R.
Published: July 2006

This study develops a firm‐level bioeconomic simulation model capable of stochastically determining yields for the major dryland and irrigated crops in the central basin of the Ogallala Formation as a function of soil moisture and atmospheric stress during critical stages of plant development. The model is used to evaluate three methods of regulating groundwater irrigation—no restriction, a quantity limitation, and a graduated tax per unit above the quantity limitation. Results differ for poor and adequate water situations but indicate the potential value of an educational program on timing of irrigation application to maximize net farm income.
Estimating the Influence of Service Quality on Transportation Demand
Authors: Johnson Marc A.
Published: July 2006

Following a theoretical justification for considering service quality as a demand determinant based upon conventional derived demand analysis, an empirical procedure is developed for estimating the response of demand and modal selection probability to changes in service quality. The estimation technique suggested is similar to that used in the measurement of hedonic price indices, permitting a subjective evaluation of quality factors by shipping managers. An empirical demonstration suggests that transport demand responsiveness to transport service quality is inelastic for country grain elevators.
Rural Poverty and Government Intervention: The Case of the Argentine Yerba Mate Industry
Authors: Fiorentino Raul , Dean Gerald W.
Published: July 2006

A simple econometric model was used to demonstrate that government intervention in the yerba mate market has favored large producers and processors in the Argentine province of Misiones. Large producers have benefited not only through high price supports but also by integrating vertically to appropriate the price support benefits intended for small farmers. An alternative mixed policy strategy believed to be both economically feasible and politically acceptable was proposed to alleviate rural poverty associated with the yerba mate industry. This policy includes changes in land tenure and farm operational systems along with modifications in current price policy.
Guaranteed Price Adjustment and Market Stability in the United Kingdom: The Case of Beef and Milk
Authors: Evans Martin
Published: July 2006

The dynamic properties of a producer‐government interaction model are investigated to show why the United Kingdom's policy of regulating its agricultural markets by annually adjusting guaranteed prices failed to control persistent fluctuations in supplies, market prices, and subsidy costs of beef and milk during the fifties and sixties. The evidence suggests that governments' responses to undesired movements, particularly in potential milk supplies, were excessive in terms of the magnitudes and frequency of official price adjustments. This emphasized the cyclical tendencies in the beef‐milk economy, which was also susceptible to the destabilizing effects of random milk yield variation.
The Measurement of Buyer Brand Preference and Indifference Under Changing Terms of Trade
Authors: Anderson Evan E.
Published: July 2006

A model first suggested by Padberg, Walker, and Kepner has been employed in this paper to evaluate the impact of changes in the retail terms of trade on the magnitude and composition of consumer brand preferences.
Devaluation, Foreign Trade Controls, and Domestic Wheat Prices
Authors: Johnson Paul R. , Grennes Thomas , Thursby Marie
Published: July 2006

The 1970s have seen sharp fluctuations in grain prices. Several plausible explanations for the unusual severity of these ups and downs have been advanced, including devaluation of the dollar for the upswing in 1972–74. U.S. wheat prices for the year of highest prices, 1973–74,are examined. A trade model that distinguishes wheat by country of origin is used to analyze various events in that year. It is concluded that insulating trade policies by wheat exporters and importers had the largest impact on U.S. wheat prices.
Welfare Implications of Commodity Storage under Uncertainty
Authors: Helmberger Peter , Weaver Rob
Published: July 2006

Intertemporal equilibrium is determined for a competitive market when private inventories are held. Production and storage decisions respond to rational expectations of uncertain prices. Algebraic expressions for gains (losses) to buyers and producers are derived in this context. Competitive equilibrium maximizes gains to society. Government programs that stabilize price either completely or partially generate benefits to producers and losses to buyers relative to competitive equilibrium. Welfare effects are quantified assuming an initial period of abundance and various supply and demand elasticities.
Facilities Location: The Case of Grain Subterminals
Authors: Hilger Donald A. , McCarl Bruce A. , Uhrig J. William
Published: July 2006

An analysis of a grain subterminal location problem within northwestern Indiana is presented. The problem is solved as a mixed integer program with Benders Decomposition, and discussion is presented on the technique. The empirical analysis concentrates upon the optimum number of subterminals within the region under different assumptions. Upon the concentration of grain in the export market, the results show that initially subterminals reduce costs somewhat regardless of location but as the optimum number is approached location becomes more critical.
Resource and Environmental Constraints to Growth
Authors: Smith V. Kerry , Krutilla John V.
Published: July 2006

To evaluate conventional methods for modeling the role of natural resources in economic activities, this analysis reviews the specific attributes of past and current neoclassical models that included natural resources, considering both micro analyses of extractive firm behavior and aggregate optimal planning models, and examines conventional assumptions about constraints to economic activities including both the availability of production materials and the absorptive capacity of environmental resources. An optimal allocation of natural resources (all the original endowments of the earth) requires a conjunctive management strategy so that both the rates of extraction and waste generation are considered.
Endogenous Input Prices in Linear Programming Models
Authors: Hazell Peter B. R.
Published: July 2006

This paper provides a method for formulating linear programming models in which one or more factors have upward sloping supply schedules, and the prices of these factors are to be endogenously determined at either their competitive market equilibrium values or at the levels set by a monopsonist. The method for achieving these results utilizes the sum, over the relevant factor markets, of the producers' and consumers' surplus, and is an extension of existing methods for solving price endogenous models of product markets.
Artistic Research Tools for Scientific Minds
Authors: Ladd George W.
Published: July 2006

The topics of this paper are frequently‐used, versatile research tools: subconscious mental processes (imagination and intuition), chance (including serendipity) and writing. Conditions that may stimulate subconscious mental processes to generate useful ideas are discussed. They are doubt, venturesome attitude, diversity, thorough preparation, tension, temporary abandonment, relaxation, writing, exchange with colleagues, freedom from distraction, and deadlines. Various forms of chance and their roles in research and problem solving are discussed. It is argued that writing is not only a research‐reporting tool but is also valuable in performing research.
International Farm Prices and the Social Cost of Cheap Food Policies
Authors: Peterson Willis L.
Published: July 2006

The evidence suggests that real prices received by farmers in the LDCs have been substantially lower than farm prices in the developed nations. Estimates of a long‐run aggregate agricultural supply elasticity from cross‐section data reveal that it is relatively elastic, in the range of 1.25 to 1.66. It is estimated also that with more favorable farm prices agricultural output in a group of twenty‐seven LDCs could have been 40% to 60% greater than it was and the national income of the group increased by more than 3% annually.
Interregional Structure of the U.S. Coal Economy
Authors: Libbin James D. , Boehlje Michael D.
Published: July 2006

A multiperiod spatial equilibrium model of the national coal economy is developed to evaluate future interregional shifts in coal production and the investment requirements and sequencing for exploitation of a nonrenewable, variable quality resource. The effects of alternative sulfur dioxide emission standards and demand growth projections on the location and type of coal production, the transportation industry, and capital markets are examined. The study concludes that the coal industry can expand through 1990, especially in Appalachia and the West, to meet both greatly increased demand and restrictive air quality standards at moderately increased cost.
Application of a Simulative Approach to Evaluating Alternative Methods for the Control of Agricultural Pests
Authors: Reichelderfer Katherine H. , Bender Filmore E.
Published: July 2006

A microanalytic simulation model of the interrelationships among Mexican bean beetle pest populations, populations of wasps that are parasites of the pest, chemical control inputs, and soybean yield is presented. Points from output response surfaces obtained through simulations of alternative biological and chemical pest control strategies are utilized in conjunction with cost data to construct benefit‐cost ratios for each intraseasonal control option studied. Comparison of ratios indicates that biological control of the pest is, by benefit‐cost criteria and from both private and social perspectives, a competitive alternative to chemical control.
Portfolio Adjustments: An Application to Rural Banking
Authors: Robison Lindon J. , Barry Peter J.
Published: July 2006

A general method is provided for evaluating how an expected‐utility‐maximizing choice is changed in response to factors shifting the mean‐variance (EV) efficient set and changes in the decision maker's level of risk aversion. Substitution and income effects under uncertainty are defined, related to those existing under certainty, and analyzed graphically and in a quadratic programming model of a rural bank. The bank application includes risk and liquidity components and indicates that the magnitude of the portfolio response may not be trivial. Evidence is also provided indicating the consistency between bank behavior and the EV decision criterion.
Availability and Shipment of Grain Survival of a Nuclear Attack
Authors: Haaland Carsten M.
Published: July 2006

It is assumed that at least 90% of the American population would survive the direct effects (blast, fire, and initial nuclear radiation) of a nuclear attack of 6,600 megatons if about 90 million people were relocated from high‐risk areas during a crisis period preceding the attack. If the survivors from the direct effects are protected from radioactive fallout by suitable shelters, the remaining major problem affecting survival will be adequate food. This paper indicates that sufficient grain stocks and transportation will likely be available after the attack to assure survival of the American population.
Alternative Estimates of Static and Dynamic Demand Systems for Canada
Authors: Green Richard , Hassan Zuhair A. , Johnson S. R.
Published: July 2006

Selected static and dynamic demand systems are applied to Canadian data for the period 1947–1972. Four commodity groups—durables, semi‐durables, services and nondurables—are used for the major portion of the analysis. For the static systems, results for nine commodity groups are provided as a comparison. Income and price elasticity estimates, following from the static systems are, with the exception of the double log, proved reasonably similar. The estimates from the two dynamic systems, the dynamic linear expenditure and state adjustment models, appeared more plausible particularly for services and durable goods, where persistence in consumption patterns is generally observed. As related to other estimates from United States and Canadian data, these results seem to be more stable and more in agreement with a priori reasoning.
Optimal Regional Conjunctive Water Management
Authors: Noel Jay E. , Gardner B. Delworth , Moore Charles V.
Published: July 2006

An optimal control model is used to determine the socially optimal spatial and temporal allocation of groundwater and surface water among agricultural and urban uses. The control model is described briefly and its advantages over other dynamic models are enumerated. Optimal rates of groundwater pumpage over the planning horizon were highly sensitive to increasing energy costs. Groundwater basins are shown to react differently to alternative economic and hydrological parameters. In a dynamic setting, a policy of pump taxes was shown empirically to be superior to pro‐rata quotas and uncontrolled pumpage.
An Approach to the Delineation of Rural Banking Markets
Authors: Mathis Stephen A. , Harris Duane G. , Boehlje Michael
Published: July 2006

A cross‐demand schedule approach is modified to develop a procedure for delineating product and service markets. Firms are classified as either rivals or nonrivals based on a statistical examination of response times to price adjustments. A test of the approach is made for the delineation of banking markets. Preliminary results indicate that the procedure may have potential for assisting policy makers in decisions regarding the competitive environment of the banking industry.
Nutrient Availability, Food Costs, and Food Stamps
Authors: Basiotis Peter , Brown Mark , Johnson S. R. , Morgan Karen J.
Published: July 2006

Nutrient consumption patterns of low income households were analyzed using data from the special low income component of the 1977–78 Nationwide Food Consumption Survey. A system of simultaneous equations for estimating food cost and diet component availability levels in home food supply was applied. The derived reduced form showed that Food Stamp Program participation had a positive impact on diet component availability levels. Impacts of other socioeconomic variables examined for diet component availability were generally larger than those for program participation and income. Diet component availability levels were relatively constant across households with different income and Food Stamp Program bonus levels.
Iowa Crop Production and Soil Erosion with Cropland Expansion
Authors: Amos Orley M. , Timmons John F.
Published: July 2006

A parametric programming model is used to estimate crop production profitability of Iowa's noncropland. The model indicates that Iowa cropland is expandable by five million acres if crop prices double the 1978 level. Additional cropland expansion is less responsive to further crop price increases. The model also indicates that soil erosion from cropland expansion is greater than the state's average. However, if the model constrains soil erosion to under five tons per acre, soil erosion is greatly reduced with only slight reductions in potential cropland.
Farm‐Level Fertilizer Demand in Java: A Meta‐Production Function Approach
Authors: Pitt Mark M.
Published: July 2006

This paper models seed variety choice and the demand for variable inputs as jointly determined by profit‐maximizing cultivators. The approach parallels that of Hayami and Ruttan, who postulated that changes in the output‐fertilizer price ratio induce movements along a meta‐fertilizer response function, the envelope of individual variety‐specific response surfaces. Ignoring the possibility of seed variety switching leads to underestimates of fertilizer demand elasticities. In addition, estimation with samples reflecting a single seed variety may involve serious selection bias. A two‐stage procedure which adjusts for selectivity bias is used to estimate the model with farm‐level data from Java.
Empirical Analysis of Soviet Agricultural Production and Policy
Authors: Wyzan Michael L.
Published: July 2006

This paper employs production function analysis to examine a number of pivotal issues concerning the Soviet agricultural sector. Estimates of three input translog production functions for five agricultural commodities grown in the Soviet Union from 1960–76 are reported. These results are used to draw inferences on such matters as the rationality of Soviet agricultural factor pricing, the nature of agricultural returns to scale in the USSR, and the scope of factor substitution in that country. The empirical evidence suggests that Soviet decisions in the sphere of agricultural production, contrary to the conventional wisdom, are well‐founded technologically.
A Trend Projection of High Fructose Corn Syrup Substitution for Sugar
Authors: Carman Hoy F.
Published: July 2006

High fructose corn syrup is a comparatively low‐priced sugar substitute which is experiencing rapid demand growth. A simple logistical trend model suggests that both per capita and total U.S. sugar consumption will decrease for several years as high fructose corn syrup is adopted. The impact on domestic sugar producers under current policy is minimal with costs borne primarily by sugar‐exporting countries. Food manufacturers can reduce production costs, and some of this may be passed to consumers in lower product prices. Per capita consumer savings, however, will be small. The impact on corn prices also will be small.
Goal Programming via Multidimensional Scaling Applied to Senegalese Subsistence Farms
Authors: Barnett Douglas , Blake Brian , McCarl Bruce A.
Published: July 2006

A methodology is developed to estimate empirically the weights for a multiple‐goal objective function of Senegalese subsistence farmers. The methodology includes a farmer‐oriented goal preference survey and an application of a multidimensional scaling technique to the survey data. A comparison of model performance under the multiple‐goal objective function with a profit‐maximization objective function does not indicate that there are distinct advantages to using either function.
The Gains from Research into Tradable Commodities
Authors: Edwards Geoff W. , Freebairn John W.
Published: July 2006

This paper develops a model for assessing the aggregate level and distribution of the benefits of reseach into tradable commodities. It estimates gains to Australia and to the rest of the world from research into the wool and wheat industries.
Near‐Optimal Management Strategies for Controlling Wild Oats in Spring Wheat
Authors: Taylor C. Robert , Burt Oscar R.
Published: July 2006

Near‐optimal multiperiod decision rules for controlling wild oats in spring wheat in north central Montana are presented in this paper. Decision alternatives are fallow, use of a preemergent or postemergent herbicide, and crop without use of a herbicide. The near‐optimal decision rules, which were obtained from a partially decomposed stochastic dynamic programming model, depend on density of wild oats seed in the plow layer, whether the land was previously cropped or fallow, soil moisture level, price of spring wheat, and post‐planting density of wild oats.
Toward a Theory of Agricultural Insurance
Authors: Ahsan Syed M. , Ali Ali A. G. , Kurian N. John
Published: July 2006

In this paper we develop a theory of crop insurance. We start by reaffirming the risk‐spreading role of competitive crop insurance markets. It is argued, however, that once the problems of imperfect information are recognized, a competitive crop insurance market may not exist at all. Two candidates present themselves. First is market insurance with the public sector as a source of (costly) information gathering and dissemination, and second, is the direct provision of crop insurance by the public sector. We focus on the latter and develop a model of public insurance as a decentralized plan where the farmer determines factor utilization taking the insurance contract as given. In turn, the insurance agency, taking factor utilization as determined by the farmer, chooses the optimal contract so as to maximize the value of aggregate output in the economy.
A Nonlinear Expenditure System Using a Linear Logit Specification
Authors: Tyrrell Timothy , Mount Timothy
Published: July 2006

Recent literature on the estimation of models of consumer expenditure patterns indicates that Engel curves are nonlinear and demographic variables are important determinants of demand. A linear logit household expenditures model is presented which automatically displays “adding up” properties derived from the budget constraint while permitting great flexibility in the Engel curves. In addition, homogeneity and symmetry can be imposed and tested, and by a simple transformation the coefficients can be estimated by linear regression. Another advantage of the model is that demographic variables, such as household size and composition, can be introduced without sacrificing the “adding up” properties.
Effects of an Increase in the Federal Excise Tax on Cigarettes
Authors: Sumner Daniel A. , Wohlgenant Michael K.
Published: July 2006

The economic impact of a cigarette tax increase on the cigarette and tobacco industries depends on market forces and on the U.S. tobacco program. This study uses a log‐linear equilibrium displacement model, parameter estimates from prior studies, and recent data to indicate quantitative effects. International trade implies that the effect of the tax increase on the price of domestic tobacco will be small, even in the case of fixed tobacco quotas. However, the effects on tobacco producers' revenue, quota lease rates, and producer economic rents can be significant, depending on the response of U.S. tobacco policy to a tax change.
Institutional Affiliation of Contributors to the American Journal of Agricultural Economics, 1973–83
Authors: Simpson James R. , Steele John T.
Published: July 2006

History of reviews of contributions to the American Journal of Agricultural Economics are examined. Total pages, pages per capita all faculty, and per teaching research faculty of contributors to the American Journal of Agricultural Economics for 1979–83 are reported for land grant institutions. Rankings are provided. There are also averages for 1973–79 and 1980–83.
Marketed Surpluses of Agricultural Households in Sierra Leone
Authors: Strauss John
Published: July 2006

An agricultural household model is used with household level data from Sierra Leone to estimate elasticities of marketed surplus for several outputs and for labor with respect to price and nonprice variables. Positive own‐price elasticities are found, with magnitudes considerably above own‐price output elasticities. Changes in household characteristics and production technology also affect marketed surpluses but not always in anticipated directions. Elasticities are reported for households when grouped by their total expenditure, not just for the sample mean. The differences are important, showing that low expenditure households respond as much as high expenditure households.
Agricultural Productive and Consumptive Use Components of Rural Land Values in Texas
Authors: Pope C. Arden
Published: July 2006

Consumptive demand applies significant upward pressure on rural land values and plays an important role in determining farm and ranch structure in Texas. Using cross‐sectional land value data and regression analysis, various factors that affect rural land values in Texas are evaluated. Population density, proximity to major metropolitan centers, quality of deer hunting, and aesthetic differences across the state explain the majority of the differences in rural land values. On the average, only about 22 percent of the total market value of rural land in Texas can be statistically explained by its productive value.
Errors in the Numerical Assessment of the Benefits of Price Stabilization
Authors: Helms L. Jay
Published: July 2006

This paper presents a simple computational procedure for determining a consumer's willingness to pay to have a price stabilization policy implemented. Numerical simulations are then provided which demonstrate that the commonly used expected surplus measures (whether Hicksian or Marshallian) can in fact seriously misstate the true benefits of price stabilization. These simulations also illustrate the extent to which the results may be dependent upon the assumptions made—implicitly or explicitly—regarding the consumer's attitudes toward risk, thereby underscoring the need to conduct sensitivity analyses to determine the robustness of cost‐benefit assessments with respect to these assumptions.
Endogenous Price Policies and International Wheat Prices
Authors: Sarris Alexander H. , Freebairn John
Published: July 2006

International prices are modeled as Cournot equilibrium interactions of national excess demand functions, which, in turn, are solutions of domestic welfare optimization problems. It is shown that interaction of national policies can lead to excess depression and instability of both international and domestic prices. The model is estimated for wheat and is used to show that, under free trade, average world prices would be much higher while price instability would be much lower. Furthermore, the European Economic Community policies alone contribute about 80% to these distortions.
Agricultural Pests as Common Property: Control of the Corn Rootworm
Authors: Lazarus William F. , Dixon Bruce L.
Published: July 2006

Insecticide resistance is an increasingly widespread problem reducing effectiveness and necessitating a switch to more expensive controls. A common property resource model is used to describe potential gain from internalizing resistance externalities through regional coordination. A nonlinear programming model of an Illinois cash grain farm is used to estimate the gain for corn rootworm control where rotation to soybeans is an alternative to insecticide. Switching to rotation as resistance builds causes a relatively minor decrease in profits because soybeans are profitable. Gain from delaying resistance is slight. Co‐states give price changes necessary to alter externality production.
A Hedonic Price Model for Rough Rice Bid/Acceptance Markets
Authors: Brorsen B. Wade , Grant Warren R. , Rister M. Edward
Published: July 2006

Several quality factors are important in valuing rough rice. This paper first evaluates the ability of federal grades to explain these factors. Second, the discounts associated with various quality factors are estimated. Finally, the factors affecting acceptance of a bid are investigated. The results indicate grades are useful but inadequate in explaining observed quality differentials. The major quality factor in determining price was head yield. Stinkbug damage was the most important quality factor of those that producers could control. The probability of acceptance increased with higher than expected bids, smaller lot sizes, more bidders, and as the marketing season progressed.
Portfolio Diversification, Futures Markets, and Uncertain Consumption Prices
Authors: Berck Peter , Cecchetti Stephen G.
Published: July 2006

This paper examines the robustness of the Keynes‐Hicks backwardation hypothesis for futures markets in a model that admits diversification and inflation protection as speculative motives. It presents a criterion in terms of the correlation of futures price with anticipated consumption net of other asset holdings for the Keynes‐Hicks proposition to be true. The paper finds the effect of changes in net wealth and commodity demand on the risk premium, spread, open interest, and storage.
Agricultural Lending Decision: A Multiattribute Analysis
Authors: Stover Roger D. , Teas R. Kenneth , Gardner Roy J.
Published: July 2006

This paper examines the agdcultural loan decision process from the perspective of the individual loan officer. An analysis of this process concerns the relative effects of various criteria on the loan application and the degree to which tradeoffs are made among them by the loan officer. The theoretical model is empirically tested using a set of factorially designed combinations of these variables. This format avoids several of the problems previously encountered when the iending process has been empirically examined. The model not only exhibits a high degree of explanatory power but also permits important insights into this process.
Marketing Margins and Price Uncertainty: The Case of the U.S. Wheat Market
Authors: Brorsen B. Wade , Chavas Jean‐Paul , Grant Warren R. , Schnake L. D.
Published: July 2006

This paper seeks to determine the effect of changes in output price risk on marketing margins. A theoretical model of price determination in a marketing channel with risk‐averse firms is developed. This model shows that if marketing firms ate competitive and decreasingly absolute risk averse, then an increase in output price risk should result in higher expected marketing margins. Empirical evidence from the wheat marketing channel supports the theoretical model: increased price variability significantly increases wheat marketing margins for both the farm‐mill margin and the mill‐retail margin. These results suggest a potential benefit from price stabilization programs.
The Effects of Cashing out Food Stamps on Food Expenditures
Authors: Hollonbeck Darrell , Ohls James C. , Posner Barbara
Published: July 2006

A demonstration program conducted by the U.S. Department of Agriculture at eight sites around the United States tested the concept of food stamp cashout for participants in the Food Stamp Program who are elderly and/or who receive Supplemental Security Income. Participants in the demonstration received their food stamp allotments in the form of cash (checks) rather than as food coupons. The results of the demonstration evaluation suggest that the switch to cashout did not substantially weaken the impacts of the Food Stamp Program on food expenditures.
The Demand for Irrigation Water in the High Plains of Texas, 1957–80
Authors: Nieswiadomy Michael
Published: July 2006

A new method of calculating groundwater pumpage is used to estimate water demand. These results are used, via the Gisser‐Sanchez model, to show that pumpage regulation is unlikely to be beneficial in the Texas High Plains. A sensitivity analysis is performed on present value profits under optimal control and competitive schemes, using different (water demand) slope and intercept values. The results indicate that the Gisser‐Sanchez rule is useful in determining the divergence in pumpage time paths and percentage difference in profits, under the two schemes, but it is not insightful in determining the nominal difference in profits.
Monetary Returns to Bachelors and Masters Degrees in Agricultural Economics
Authors: Broder Josef M. , Deprey Rodney P.
Published: July 2006

Characteristics of agricultural economics alumni from the University of Georgia were discussed and a general linear model was developed to explain differences in bachelors and masters alumni salaries. Graduate education, work experience, resource mobility, gender, family background, and high school size were found to influence alumni salaries. Returns to a masters degree were computed along with capital recovery periods. Assistantship levels, cost of borrowed and human capital, and nonmonetary benefits were relevant in decisions to attend graduate school. Some costs and benefits of graduate education were found to be subjective, to vary across individuals, and to be influenced by prevailing economic conditions.
A Portfolio Analysis of Poor Rural Wage‐Working Families' Assets and Debts
Authors: Bryant Keith W.
Published: July 2006

Data from the 1970–73 rural income maintenance experiment were employed to estimate a stock adjustment model for poor rural wage‐working families' assets and debts. The assets were owned housing, cars, consumer durables, and liquid assets. The debts were home mortgages, non‐real estate debts to financial institutions, and non‐real estate debts to nonfinancial institutions. Poor whites increase assets by $.12 and debts by $.06 given a $@@‐@@1.00 increase in nonwelfare income; poor blacks react hardly at all. Both own‐ and cross‐partial stock adjustment coefficients were estimated. Stock adjustments are more complex in the white than the black portfolios.
U.S.‐Mexican Trade in Winter Vegetables and Illegal Immigration
Authors: Torok S. J. , Huffman W. E.
Published: July 2006

This paper presents an integrated approach to U.S.‐Mexican trade in a labor‐intensive commodity (fresh winter tomatoes) and illegal immigration of agricultural labor. A seven‐equation econometric model is developed that includes excess demand (U.S. import) and supply (Mexican export) equations for fresh winter tomatoes, U.S. demand and Mexican supply equations for apprehensible individuals, intercountry price and wage relationship equations, and a U.S. Border Patrol apprehension effort equation. The empirical results indicate that both U.S. and Mexico economic conditions affect the number of apprehended illegal Mexican aliens. The results also indicate that immigration and trade policies affect apprehensions.
Economic Impact of Public Pest Information: Soybean Insect Forecasts in Illinois
Authors: Moffitt L. Joe , Farnsworth Richard L. , Zavaleta Luis R. , Kogan Marcos
Published: July 2006

Previous agricultural pest management information studies have focused on the consequences of providing pest information to farmers without access to other sources of pest information. In view of the proliferation of commercial scouting services, this paper uses a preposterior decision model of pest management to examine the outcomes likely to follow from introduction of public pest information into an area with an existing commercial pest information market. Empirical estimates of the impact of a soybean insect forecast system in Illinois demonstrate that although farmers can benefit from public pest information, the implications for pesticide use depend on the reliability of public forecasts.
The Theoretical Effects of Farm Policies on Optimal Leverage and the Probability of Equity Losses
Authors: Featherstone Allen M. , Moss Charles B. , Baker Timothy G. , Preckel Paul V.
Published: July 2006

The degree to which the use of debt is increased in response to risk‐reducing and income‐augmenting farm policies is studied theoretically. A mean‐variance model is used to determine the optimal leverage adjustment, then the effects of policies on the cumulative probability of earning very low rates of return on equity are examined. The evidence suggests that farm policies induce a large enough increase in financial leverage to increase the probability of farmers having negative returns to equity.
Exact Welfare Measurement for Producers under Uncertainty
Authors: Larson Douglas M.
Published: July 2006

Ex ante compensating and equivalent variations for producers under price or production uncertainty frequently can be obtained from properly specified ordinary ex ante output supply or input demand functions without assumptions about the decision maker's risk aversion. The Slutsky‐Hicks equations for several common empirical specifications of the production problem under uncertainty can be integrated to obtain the compensated supplies (demands) from observed ordinary supplies (demands). Closed‐form expressions for the exact welfare measures of parameter changes are derived for these cases.
Small‐Sample Evaluation of Mean‐Variance Production Function Estimators
Authors: Buccola Steven T. , McCarl Bruce A.
Published: July 2006

Production functions have been shown useful for characterizing input effects on both the mean and variability of yield. Monte carlo experiments are used here to investigate small‐sample properties of selected mean‐variance production function estimators. Estimation efficiency in the mean is found to improve with iteration on the mean and variance components. Although efficiency in the variance is greatest at the first stage, bias in the variance diminishes through at least the second stage. These effects are influenced by the degree and sign of heteroscedasticity and by sample size.