bluuebunny/crossref_metadata_2025 huggingface dataset:
Cattle as a Store of Wealth in Swaziland: Implications for Livestock Development and Overgrazing in Eastern and Southern Africa
Authors: Doran M. H. , Low A. R. C. , Kemp R. L.
Published: July 2006

The contention that cattle are held as a store of wealth in Swaziland is supported by a regression analysis of slaughter against price and rainfall, and by an examination of the Swazi herd structure. The failure to recognize that cattle directly satisfy both wealth and income motives in traditional societies has led to the implementation of production‐oriented livestock development programs, which may worsen the serious overgrazing problem in Swaziland. Observations elsewhere indicate that there are lessons to be learned for livestock development in other overgrazed parts of eastern and southern Africa.
Wheat Cartelization and Domestic Markets
Authors: Chambers Robert G. , Woolverton Michael W.
Published: July 2006

The effects of cartelization in the international wheat market are analyzed. Particular attention is given to the relationship between the level of cartel profits and the price farmers receive for their wheat. Sufficient conditions are established for a rise in cartel profits to be associated with a rise in the farmgate price of wheat. The potential stability of a cartel formed by the major trading companies also is investigated and a means of preventing cheating is introduced and discussed.
An Analytical Framework for Extension Community Development Programming in Local Government
Authors: McDowell George R.
Published: July 2006

Current Extension programming in community development, much of it directed at local government problems, appears a potpourri of stylistic approaches. The public choice paradigm explicitly establishes a theoretical basis for the view that government's primary role is providing for resolution of the constant and inevitable conflicts between the values of citizens. It views the level and mix of services provided by government as a reflection of that political process rather than a scientifically determinable optimum. These arguments clarify differences between “process” and “substantive” approaches to Community Resource Development programming and suggest a framework for Extension strategies for improving local government.
Risk Attitudes of Subsistence Farmers in Northeast Brazil: A Sampling Approach
Authors: Dillon John L. , Scandizzo Pasquale L.
Published: July 2006

Mind experiments involving choice between risky and sure farm alternatives were used to assess risk attitudes of samples of small farm owners and sharecroppers in Brazil. Results indicate that most subsistence farmers are risk averse, and that risk aversion tends to be more common and perhaps greater among owners than sharecroppers. In an expected utility context, distribution of risk attitude coefficients (based on mean‐standard deviation, mean‐variance, and exponential utility functions) was diverse and not necessarily well represented by an average sample value. Econometric analysis indicated that income level and perhaps other socioeconomic variables influence risk attitude.
Active Learning, Control Theory, and Agricultural Policy
Authors: Rausser Gordon C.
Published: July 2006

In the evaluation of key agricultural policies, a number of critical uncertainties arise for which little in the way of empirical evidence has been accumulated. The typical departmentalization within the agricultural economics profession fails to offer any hope of properly assessing these uncertainties. One approach that integrates the separate tasks of system analysis, econometric estimation, optimization and more pragmatic data collection and summarization efforts is adaptive control. This framework effectively combines the characteristics of dynamic systems, uncertainties, and the active accumulation of information. Implications are drawn for potentially rewarding applications in agricultural and natural resource economics.
Daily Fluctuations in Campground Use: An Econometric Analysis
Authors: Oliveira Ronald A. , Rausser Gordon C.
Published: July 2006

Many recreation activities are characterized by fluctuating use levels over time. This paper presents a theoretical and quantitative analysis of fluctuations in campground use series. Theoretical use functions are specified as the reduced form of a demand and supply system, where the derived demand for campground use is based upon the household production approach to consumer demand theory. A pooled time‐series cross‐section econometric use model is specified, and its estimated parameters are presented. In addition, campground use series are modeled incorporating Box‐Jenkins time‐series analysis techniques. Econometric predictions are more accurate relative to autoregressive‐integrated‐moving‐average (ARIMA) predictions.
Endangered Species and Uncertainty: The Economics of a Safe Minimum Standard
Authors: Bishop Richard C.
Published: July 2006

Species extinction irreversibly narrows the reservoir of potential resources. The future repercussions of this narrowing are uncertain. This paper develops the safe minimum standard (SMS) approach to public decisions involving endangered species. The SMS approach is based on game theory and calls for avoidance of extinction unless the social costs are unacceptably large. The level at which costs become excessive is a matter of intergenerational distribution. The paper also explores important linkages between the SMS approach and recent literature on preservation of natural environments.
Food Distribution and Food Stamp Program Effects on Food Consumption and Nutritional “Achievement” of Low Income Persons in Kern County, California
Authors: Lane Sylvia
Published: July 2006

Participants in the U.S. Department of Agriculture's Food Distribution Program received more food than they would have purchased with food stamps in the market. These participants had slightly higher achievement ratios for some specific nutrients, such as protein, iron, and thiamine, than did nonparticipants. Food stamp recipients also had somewhat similar gains in nutrients, while spending a lower percentage of money income on food than nonparticipants.
Incorporating Policy Variables in a Model of the World Soybean/Rapeseed Market
Authors: Meilke Karl D. , Griffith Garry R.
Published: July 2006

Policy variables are typically treated as exogenous variables in agricultural commodity models. In this paper evidence that policy variables can be successfully endogenized in a world trade model of the soybean/rapeseed and products market is presented. Minimum price support equations are estimated for U.S., Brazilian, and Japanese soybeans, and EC and Japanese rapeseed. Macroeconomic indicator variables are used to capture the impact of nontariff barriers in Brazil and Japan domestic‐world price link equations. Simulation experiments are conducted which indicate that the model with endogenous policy variables performs well in comparison with a model which treats policy exogenously.
Soil Conservation with Uncertain Revenues and Input Supplies
Authors: Kramer Randall A. , McSweeny William T. , Stavros Robert W.
Published: July 2006

The influence of risk on farm level soil conservation decisions is examined. A symmetric quadratic risk‐programming model is used which allows the simultaneous consideration of uncertainty in revenues and input supplies. It is demonstrated that risk aversion can influence the selection of soil‐conserving activities.
Return Flow Control Policy and Income Distribution among Irrigators
Authors: Dudek Daniel J. , Horner Gerald L.
Published: July 2006

Income distributional impacts and irrigation return flows resulting from the implementation of alternative water quality policies were projected for the Western San Joaquin Subbasin from a recursive simulation of an integrated physical‐economic analytical system. The imposition of a water management policy to increase irrigation efficiency resulted in an improved income distribution with a slight decline in average firm income. Salt load and concentrations were reduced by 80%. A policy of increased surface water costs worsened income distribution and decreased average firm income by 34%. Total salt load decreased by 35%, but the concentration in return flows was only slightly decreased.
Agricultural and Financial Market Interdependence in the Short Run
Authors: Chambers Robert G.
Published: July 2006

A theoretical model capable of examining the effects of various monetary policies on agriculture is developed. Results from comparative static experiments with the model show that a restrictive monetary policy may adversely affect agriculture. Results from the theoretical model are compared with earlier studies and are empirically investigated using vector autoregression techniques. In general, empirical analysis supports the theoretical developments.
Florida Motor Carrier Deregulation: Perspectives of Urban and Rural Shipper/Receivers
Authors: Beilock Richard , Freeman James
Published: July 2006

It is commonly asserted that with release from economic regulations, motor carriers will eliminate or sharply reduce services to small and inconveniently located shipper/receivers. In this study the experiences of shipper/receivers under Florida deregulation are examined. Shipper/receiver experiences are compared according to firm size, community size, and proximity to major metropolitan areas or highways. The results indicate that while firm size has little bearing on service, locational factors are important. For all shipper/receiver subgroups, however, those indicating improvements greatly outnumber those reporting erosions in service.
Forecasting U.S. Pork Production Using a Random Coefficient Model
Authors: Dixon Bruce L. , Martin Larry J.
Published: July 2006

A random coefficient regression model is found to be superior to a fixed coefficient model for short‐ and intermediate‐term forecasting of quarterly U.S. pork production. The random coefficient model portrays some regression parameters as the sum of a systematically changing component and random error. Use of such models is discussed. Pork supply is hypothesized as a function of seasonal shifters with geometric lags on hog and feed prices. Results show seasonal effects declining, feed price not being a significant explanatory variable, and pork production adjusting faster to lagged price conditions than indicated by the constant coefficient model.
Agricultural Income Tax Expenditures—A Microeconomic Analysis
Authors: Hanson Gregory D. , Eidman Vernon R.
Published: July 2006

Annual agricultural tax expenditures (tax subsidies) for farms in the sample increased dramatically from $@@‐@@2,430 in 1967–72 to $@@‐@@8,590 in 1973–78. Tax expenditures were beneficial to all major enterprises and farm sizes. While large farmers received nearly three times the value of small farm tax savings, small farmers received more tax expenditures per dollar of farm sales. Tax progressivity declined during the sample period based on adjusted gross and economic measures of income, and combined state income and self‐employment taxes exceeded federal income taxes during 1973–78. Also, tax expenditures far exceeded direct government payments to sample farmers during 1973–78.
Welfare Evaluations in Contingent Valuation Experiments with Discrete Responses
Authors: Hanemann W. Michael
Published: July 2006

Since the work of Bishop and Heberlein, a number of contingent valuation experiments have appeared involving discrete responses which are analyzed by logit or similar techniques. This paper addresses the issues of how the logit models should be formulated to be consistent with the hypothesis of utility maximization and how measures of compensating and equivalent surplus should be derived from the fitted models. Two distinct types of welfare measures are introduced and then estimated from Bishop and Heberlein's data.
Stochastic Dynamic Duality: Theory and Empirical Applicability
Authors: Taylor C. Robert
Published: July 2006

This paper explores duality relationships for a broad class of stochastic dynamic production problems. Assuming that the decision maker maximizes the expected present value of profit, it is shown that product supply, negative factor demand, and negative quasifixed factor acquisition equations cannot be directly obtained by partial differentiation of the indirect profit function if price expectations have a Markovian structure. Consequently, empirical application of duality to many stochastic dynamic problems is quite complex and may be more difficult than a primal approach to the problem.
Analysis of Food Stamp Participation Using Qualitative Choice Models
Authors: Capps Oral , Kramer Randall A.
Published: July 2006

Food stamp program participation at the household level was analyzed using a nationwide sample of households as well as refined measures of residential location, source of income, and household age distribution. Additionally, an empirical comparison of probit analysis vis‐à‐vis logit analysis was provided. The criteria for the comparison consisted of the use of estimated parameter values, signs, magnitudes, and test statistics, goodness‐of‐fit to sample data, predictive ability to independent data samples, and non‐nested testing procedures. On the basis of this application, the two alternatives appeared to perform equally well.
The Welfare Implications of Minimum Quality Standards
Authors: Bockstael Nancy E.
Published: July 2006

Previous analysis of the social welfare implications of minimum quality standards has yielded no decisive results. In this paper the specific nature of consumer and producer responses to quality standards is incorporated into the analysis. Both consumer and producer gains are shown to be impossible when consumers can perceive quality before purchase, even if low quality produce is diverted to secondary markets. Standards unambiguously reduce net social benefits. The paper explores the possibility that minimum quality standards are a form of rent‐seeking behavior.
The Influence of Psychic Costs on Rural‐Urban Migration
Authors: Deaton Brady J. , Morgan Larry C. , Anschel Kurt R.
Published: July 2006

Psychic costs reflect differences in interregional utility, an important determinant of population among regions. Following Sjaastad's definition of psychic costs, the consumer surplus foregone by Appalachian migrants in two urban areas was measured as the difference between current urban income and an acceptable income level in eastern Kentucky. Psychic costs varied significantly with the size of the city of destination; migrants' demographic characteristics; and their satisfaction with jobs, city services, and interpersonal relationships in the city. Mobility which reduces psychic costs contributes to social well‐being but will not be measured in national economic accounts.
Cooperatives' Tax “Advantages”: Growth, Retained Earnings, and Equity Rotation
Authors: Caves Richard E. , Petersen Bruce C.
Published: July 2006

Cooperatives are subject to full tax integration for the bulk of their income, while corporations' net income is subject to what is known as a classical form of taxation. This paper derives the condition under which full tax integration gives the cooperative a lower cost of equity capital and develops a model to examine the effect of taxation, together with equity rotation, on the growth path of cooperatives. An examination of some financial data of the largest 100 cooperatives supports our conclusion that cooperatives, under current financial practices, are capable of extremely high short‐term growth rates, but they are not sustainable.
Expectations and Commodity Price Dynamics: The Overshooting Model
Authors: Frankel Jeffrey A.
Published: July 2006

Monetary policy has important effects on agricultural commodity prices because, though they are flexible, other goods prices are sticky. This paper formalizes the argument by applying the Dornbusch overshooting model. A decline in the nominal money supply is a decline in the real money supply in the short run. It raises the real interest rate, which depresses real commodity prices. They overshoot their new equilibrium in order to generate an expectation of future appreciation sufficient to offset the higher interest rate. These real effects (which vanish in the long run) also result from a decline in the money growth rate.
Testing for Stochastic Dominance
Authors: Tolley H. Dennis , Pope Rulon D.
Published: July 2006

A test for second‐degree stochastic dominance is proposed. The test is a permutation test using only the sample data. It is exemplified using data from Kramer and Pope. The test conclusions differ substantially from standard practice in which no statistical test is conducted.
Oligopolistic Behavior by Public Agencies in International Trade: The World Wheat Market
Authors: Paarlberg Philip L. , Abbott Philip C.
Published: July 2006

A model of the world wheat market is presented which treats public policies as endogenous. The oligopolistic nature of international wheat trade is captured by assuming policy makers form conjectures on the slope of the excess demand function they face and use that information to determine domestic and trade policies. The policies reflect differing influences of political interest groups. A U.S. crop shortfall scenario illustrates the different results with endogenous policies compared to the traditional model.
Rate Making for Farm‐Level Crop Insurance: Implications for Adverse Selection
Authors: Skees Jerry R. , Reed Michael R.
Published: July 2006

This research identifies two problems in the new Federal Crop Insurance that may cause adverse selection: (a) the relationship between rate making and expected yields for individual farmers, and (b) the bias introduced in coverage protection when trends are not used to establish expected yields. A theoretical investigation using the normality assumption demonstrates the potential severity of these problems, and empirical results from farm‐level data lend further support. As crop insurance changes to individualized methods of protection, these issues will be particularly important for developing rates.
The Impact of Food Stamps on Food Expenditures: Rejection of the Traditional Model
Authors: Senauer Ben , Young Nathan
Published: July 2006

For food stamp recipients whose normal food purchases exceed their coupon allotment, the traditional economic model predicts that the impact of food stamps on food spending will be the same as for an equal cash transfer. The Tobit analysis in this study indicates that, for these recipients, food stamps have a substantially greater impact on at‐home food expenditures than an equal amount of cash income. These results reject the traditional model. Several possible explanations of this behavior are discussed.
Agricultural Credit Programs and Production Efficiency: An Analysis of Traditional Farming in Southeastern Minas Gerais, Brazil
Authors: Taylor Timothy G. , Drummond H. Evan , Gomes Aloisio T.
Published: July 2006

Over the past two decades the effectiveness of subsidized credit programs in improving the productivity of traditional farmers in developing countries has been extensively debated. This study analyzes the effects of one such program—PRODEMATA—on the technical and allocative efficiency of traditional farmers in Minas Gerais, Brazil. The empirical results suggest that PRODEMATA has had no effect on technical efficiency and a slightly negative effect on allocative efficiency.
The Fallacy of Differencing to Reduce Multicollinearity
Authors: Burt Oscar R.
Published: July 2006

It is shown analytically that differencing time‐series data for the purpose of reducing multicollinearity in the data set for the independent variables of a regression equation cannot possibly succeed when its effect on the disturbance term is taken into account. In addition, the intuitive basis used to justify first differencing of multicollinear data is demonstrated to contain a flaw, even when the effects of differencing the disturbance term are ignored.
Implications of Bovine Somatotropin on the Value of Fluid Milk Quota in Ontario
Authors: Brown James
Published: July 2006

The biotechnological production of recombinant bovine somatotropin (rbST) could have a significant impact on North American dairy industries. To evaluate some of the potential effects of this science on Ontario milk producers, an econometric model was developed incorporating distortions caused by the dairy policies of this province. The focus of the simulation was to predict the possible effect that rbST could have on the value of Ontario milk production quotas. The Ontario Milk Marketing Board (OMMB) has the legislated authority to set supply limits. The policies that the board chooses to adopt will determine the eventual influence that this and any cost‐reducing technological advance will have on quota values. This study examines the range of values that may occur given various policy choices by the OMMB.
Comparative Analysis of Investment Models for New York Dairy Farms
Authors: Weersink Alfons J. , Tauer Loren W.
Published: July 2006

Traditional and dynamic investment models were estimated using farm‐level dairy data. The traditional model predicted more variability in desired capital and less variability in the adjustment rate than did the dynamic model. Overall the traditional model performed better. Both models suggest a significant delay between changes in the determinants of desired capital stock and the actual investment expenditure. New York dairy farmers may be making more extensive use of existing capital before making additional expenditures. Another explanation may be our use of farm‐level data where investment is periodic and discrete. Most other studies have used aggregate data.
Land Quality, Irrigation Development, and Cropping Patterns in the Northern High Plains
Authors: Lichtenberg Erik
Published: July 2006

This article examines the interactions between land quality, crop choice, and technological change using a framework that integrates cross‐sectional and intertemporal aspects of diffusion. The empirical results indicate that (a) the acreages allocated to different crops vary significantly over land quality, (b) crops tend to be grown on specific ranges of land quality, (c) the introduction of center pivot technology induced significant changes in cropping patterns, (d) land quality‐augmenting technologies tend to be utilized primarily on lower qualities of land, and (e) irrigation development has been quite sensitive to tax policies.
Computer Use in Agriculture: Evidence from Tulare County, California
Authors: Putler Daniel S. , Zilberman David
Published: July 2006

Logit analysis using data from a survey of Tulare County, California, farmers is used to examine computer and application ownership patterns in agriculture. The analysis indicates that the size of the farming operation, education level, age level, and the ownership of a farm‐related nonfarming business significantly influence the probability of computer ownership; however, the type of farm products used on the farm does not. The type of application software owned is influenced primarily by the type of farm products produced, the size of the farming operation, ownership of a farm‐related business, and the education level of the farmer.
Labor Market Dynamics in the U.S. Food Sector
Authors: Lee David R.
Published: July 2006

A simultaneous equation model is estimated to explain labor market phenomena (including wages, employment, and labor productivity) and food prices at manufacturing and retail levels of the U.S. food industry. Dynamic simulation results show that endogenizing input costs in a fully specified markup‐pricing model leads to a complex long‐run pattern of food price determination. Wage determination is found to play a central role linking general price levels to food sector prices and labor market behavior. Energy price changes are shown to significantly affect food prices. Food sector labor productivity is found to decline in response to exogenous commodity price shocks.
Determinants of the Intrahousehold Allocation of Food in the Rural Philippines
Authors: Senauer Benjamin , Garcia Marito , Jacinto Elizabeth
Published: July 2006

This study shows that the opportunity cost of time for husbands and wives can affect the intrahousehold distribution of food in a developing country. Equations which explain the relative allocation of calories within households were estimated for husbands, wives, and children with data for the rural Philippines. The estimating equation is derivable from both a joint household utility function and a bargaining model. Because the same households were included in the four survey rounds, the various observations for a given individual were averaged for each variable in the estimation procedure. Wages were estimated using the Heckman approach.
Insurability and Moral Hazard in Agricultural Insurance Markets
Authors: Chambers Robert G.
Published: July 2006

Pareto‐optimal and constrained Pareto‐optimal all‐risk insurance contracts are studied. Conditions required for emergence of competitive insurance markets are isolated and discussed. Full insurance contracts are shown to be dominated by contracts involving coinsurance and deductibles if insurers are pseudo‐risk averse. The effect of moral hazard on all‐risk agricultural insurance indemnity schedules is examined. Results for indemnity schedules under moral hazard and constant absolute risk aversion show that providing farmers with the incentives to take appropriate actions may imply lower deductibles in the presence of moral hazard than in the absence of moral hazard.
Migratory Labor and Agriculture
Authors: Emerson Robert D.
Published: July 2006

Farm workers are shown to respond strongly to economic incentives to seasonally migrate for work. The economic model is specified with separate earnings structures for migratory and nonmigratory work, and a reservation wage for migration is specified to reflect the choice between migratory and nonmigratory work. The empirical model adjusts for self‐selectivity in the sample and demonstrates that domestic farm workers sort themselves into migratory and nonmigratory workers in a manner consistent with the theory of comparative advantage. Implications for immigration and government employment and training programs are considered.
Information Effects in Contingent Markets
Authors: Bergstrom John C. , Stoll John R. , Randall Alan
Published: July 2006

Information “bias” in contingent markets is poorly understood. In this paper, testable hypotheses concerning beneficial contingent market information effects are developed conceptually. Perspective information and relative expenditure information were expected to increase comprehension and increase bids. Provision cost information was expected to counteract free‐riding behavior and also increase bids. Hypothesis tests using experimental markets suggested that each information type induced small, statistically insignificant bid increases. However, the combined effect of the three information types induced a desirable, statistically significant increase in bids. This result supports the contention that not all contingent market information effects are “biases.”
Nonstructural Risk Attitude Estimation
Authors: Antle John M.
Published: July 2006

This paper presents an econometric approach to risk attitude estimation that does not require joint estimation of the structure of the firm's technology and input decision rules. The nonstructural approach replaces optimal input choice with the assumption that farmers optimally manage their portfolios of productive activities. By thus shifting the focus from the detailed production decisions of the farm manager to the net returns of the whole farm operation, the modeling problem is simplified. The nonstructural approach is used to estimate risk attitudes in three Indian villages. The results are compared to previous experimental and econometric estimates from the same villages.
Chickens, Eggs, and Causality, or Which Came First?
Authors: Thurman Walter N. , Fisher Mark E.
Published: July 2006

Time‐series evidence from the United States indicates unidirectional causality from eggs to chickens.
Land Ownership Security and Farm Investment in Thailand
Authors: Feder Gershon , Onchan Tongroj
Published: July 2006

The article discusses the impact of land ownership security on farm investment and land improvements. Ownership security enhances capital formation by providing better incentives and improved access to credit. Data from three provinces in Thailand are used to support theoretical propositions and estimate the impact of ownership security. Econometric analysis shows that in two provinces, ownership security induces significantly higher capital/land ratios. In a third province, with a well‐developed, informal credit market, ownership security is less important and the impact on capital formation is less significant. Land‐improving investments are shown to be significantly affected by ownership security.
Cost Effectiveness and Equity Aspects of Soil Conservation Programs in a Highly Erodible Region
Authors: Young Douglas L. , Kanjo Paul L. , Walker David J.
Published: July 2006

The Conservation Reserve (CRP) and Conservation Compliance Programs could divide the soil conservation burden between farmers and taxpayers. In a highly erodible southeastern Washington region, however, a uniform region‐wide CRP bid cap and relaxed compliance requirements resulted in little or no projected burden for farmers in arid, less productive subregions. In contrast, farmers in a more productive subregion were projected to bear 50% or more of the costs of soil conservation. The projected government cost per ton of soil conserved also increased threefold from the most to the least productive subregion.
Some Further Evidence on the Law of One Price: The Law of One Price Still Holds
Authors: Baffes John
Published: July 2006

International trade models often postulate the existence of a representative price, i.e., the price which prevails at all markets. This is known as the “Law of One Price.” In this paper, the law of one price is tested for seven commodities among four countries by explicitly considering transaction costs. The empirical evidence suggests that, in most cases, the law of one price cannot be rejected asa maintained hypothesis. Furthermore, for the remaining cases transaction costs seem to cause the failure.
Innovations on Family Farms: The Nazareth Region in Israel
Authors: Yaron Dan , Voet Hillary , Dinar Ariel
Published: July 2006

This paper analyzes factors that affect innovativeness on family farms under Arab social and institutional systems in the Nazareth region in the north of Israel. The adoption of five different innovations was studied and an “index of innovativeness” was constructed. Innovativeness was found to be affected positively by risk tolerance, extension, and water quota allotment and affected negatively by the farm's land area. The latter result supports the hypothesis that a small land area provides an incentive to adopt high‐payoff, input‐intensive innovations. Innovativeness is affected by extension but not necessarily by education. This result implies that farmers with elementary school education are capable of adopting complex technologies if proper extension services are provided.
Environment‐Specific Rates and Biases of Technical Change in Agriculture
Authors: Coxhead Ian A.
Published: July 2006

In developing countries, growth rates of agricultural technology exhibit wide variation across environments because of heterogeneity of land quality. Technical change analyses employing aggregate data typically capture this information very imperfectly, because observation units rarely coincide with areas of environmental uniformity. The author presents a model permitting environment‐specific variation in the rate and factor bias of technical change when information on environmental qualities is limited. An application using Philippine data reveals substantial discrepancies between stylized irrigated and nonirrigated areas in the rate and biases of technical change. Implications of these differences for employment growth and income distribution are analyzed.
Risk Sharing versus Low‐Cost Credit Systems for International Development
Authors: Krause M. A. , Deuson R. R. , Baker T. G. , Preckel P. V. , Lowenberg‐DeBoer J. , Reddy K. C. , Maliki K.
Published: July 2006

Low‐cost credit programs in developing countries have failed to achieve agricultural technology adoption goals. This research attributes the failure to the inability of poor farmers to bear the combined business and financial risks posed by adopting new technologies and develops proposals for the design of credit programs that reduce these risks. Agronomic and socioeconomic data are combined through simulation and mathematical programming to analyze problems of decision making under risk for developing countries. The results will assist in the design of new rural financial institutions conducive to the adoption of new production technologies by subsistence farmers.
On Testing the Structure of Risk Preferences in Agricultural Supply Analysis
Authors: Pope Rulon D. , Just Richard E.
Published: July 2006

Risk preferences broadly affect many economic decisions when markets are incomplete. Common representations of risk preferences are constant absolute, relative, and partial relative risk aversion. Each of these preference classes has distinct impacts on choice. An econometric test for distinguishing the class of preferences is proposed and implemented for potato supply response in Idaho. The data reject constant absolute and partial relative risk aversion and are congruent with constant relative risk aversion.
Wife's Employment, Food Expenditures, and Apparent Nutrient Intake: Evidence from Canada
Authors: Horton Susan , Campbell Cathy
Published: July 2006

Women's employment has important effects on the share of food in total expenditure, the share of food‐away‐from‐home in the food budget, cost per calorie, and per capita availability of twelve nutrients. Empirical results are presented using Canadian household food expenditure survey data. As expected, wife's employment increases the share of food‐away‐from‐home in the food budget. Wife's full‐time employment has a negative effect on apparent nutrient intake, not offset by the higher per capita income of such households. There are policy implications for nutrition education and nutrient content of food‐away‐from‐home.
On Nonlinear Dynamics: The Case of the Pork Cycle
Authors: Chavas Jean‐Paul , Holt Matthew T.
Published: July 2006

New methods for analyzing nonlinear dynamic processes are used to evaluate the hogcorn price ratio. The results present evidence of nonlinear dynamics in the pork cycle. Moreover, while GARCH processes account for some of the nonlinearities, the pork cycle is apparently characterized by more complex dynamic forms. The empirical analysis provides some evidence of the presence of chaos in the pork cycle. The results also indicate that the dynamic process generating the pork cycle is nonlinear and cannot be adequately characterized by a small number of state variables.
Are More Exports Always Better? Comparing Cash and In‐Kind Export Subsidies
Authors: Chambers Robert G. , Paarlberg Philip L.
Published: July 2006

Cash and in‐kind export subsidies are compared. It is found that the ability to enhance real farm income via export subsidies is sensitive both to the form (cash vs. in‐kind) and the point of policy intervention. In‐kind subsidies of the type granted under the Export Enhancement Program can in fact reduce real‐farm income. Export subsidies are examined under three separate scenarios: no target price or nonrecourse loan programs, a target price but no nonrecourse loan program; and a nonrecourse loan program but no target price program. The presence of a nonrecourse loan program dampens the impacts of both cash and in‐kind export subsidies.
Differential Technology Adoption and Income Distribution in Pakistan: Implications for Research Resource Allocation
Authors: Renkow Mitch
Published: July 2006

A multi‐market model of technological change in food production is used to simulate the long‐run income distributional implications of differential diffusion of currently available wheat technologies in Pakistan. The results indicate that a research agenda emphasizing technologies suited to Pakistan's favored production environments would enhance overall production without compromising inter‐group equity. It is found that when commodity prices are market determined, net consuming households are the major beneficiaries of technological change. However, in the more common situation of government intervention in markets for staple foods, net producing households are the principal beneficiaries of technological change.
Live Cattle Futures Response to Cattle on Feed Reports
Authors: Grunewald Orlen , McNulty Mark S. , Biere Arlo W.
Published: July 2006

Knight‐Ridder surveys provide prerelease expectations of the information in the Cattle on Feed reports. The Knight‐Ridder information is employed here, in accordance with the efficient markets hypothesis, to identify the unanticipated information provided in Cattle on Feed reports. Rational expectations theory is used to test Knight‐Ridder forecasts for unbiasedness, efficiency, and forecast performance. The forecasts mostly satisfy rationality conditions. Live cattle futures prices respond to unanticipated information about placements and marketings contained in Cattle on Feed releases. However, report information is absorbed quickly.
The Welfare Effects of Deregulatin Producer Prices
Authors: Fraser Robert W.
Published: July 2006

A method is presented for examining producer welfare impacts of a range of deregulation proposals, including a reduction in price support. Welfare impacts take account not just of expected transfer effects but of changes in the uncertain conditions facing producers. The method is applied to deregulation proposals for the Australian wheat industry. Results suggest producers would benefit under some proposals but be made worse off under others. Supply responses also are estimated and shown to be generally smaller in percentage terms than are short‐run welfare effects. It is argued that short‐run and long‐run welfare effects are similar.
Household Inventories and Marketed Surplus in Semisubsistence Agriculture
Authors: Renkow Mitch
Published: July 2006

A model of semisubsistence agriculture explicitly accounting for the ability of farm households to hold inventories of staple foods is developed. Comparative statics analysis highlights the potential importance of wealth effects attributable to price‐induced changes in the value of household inventories. Empirical results for three groups of households in an Indian village confirm that failure to account for household inventories leads to an overstatement of the responsiveness of both consumption demand and marketed surplus.
Agricultural Production Technologies with Systematic and Stochastic Technical Change
Authors: Fawson Chris , Shumway C. Richard , Basmann Robert L.
Published: July 2006

A production system modeling tool is developed that implements recent work on autoregressive and endogenous stochastic production technologies associated with generalized Fechner‐Thurstone (GFT) optimizing functions. A GFT‐class production system is used to evaluate the empirical support for technology specifications inherent in the neoclassical theoretic structure of an agricultural production region. Little likelihood support is found for zero serial correlation, elimination of systematic technology changers from the production system, strict neoclassical production technologies, Hicks‐neutral technical change, or zero homogenous factor demand functions.
Incentives for Protecting Farm Workers from Pesticides
Authors: Davis John U. , Caswell Julie A. , Harper Carolyn R.
Published: July 2006

Three regulatory incentive systems that may induce farmers to protect farmworkers from pesticide‐related harm are modeled: ex post regulation via tort liability and workers' compensation systems, respectively. and ex ante regulation (fines) by administrative agencies. An empirical application examines the farmer's decision whether to comply with required precautions as well as penalties for noncompliance. Results indicate tort liability and administrative agency regulation, as practiced, provide relatively insignificant incentives, while a workers' compensation system, if fully experiencerated, may offer a more effective incentive. Nevertheless, penalties in all cases may be too small overall to have much influence on farmers' compliance decisions.
Imperfect Competition in Multiproduct Food Industries with Application to Pear Processing
Authors: Wann Joyce J. , Richard J. Sexton
Published: July 2006

Agricultural product markets often involve relatively few firms processing a farm product into multiple processed products. This market structure prompts concern that processing firms may exercise both oligopsony and oligopoly power. The present paper develops and applies a methodology to test simultaneously for market power in both the raw input market and multiple processed output markets. Application of the methodology to California pear processing indicates the industry has exerted power in both its farm input market and the markets for canned pears and fruit cocktail.
Technology Adoption Decisions under Irreversibility and Uncertainty: An Ex Ante Appproach
Authors: Purvis Amy , Boggess William G. , Moss Charles B. , Holt John
Published: July 2006

Empirical results demonstrate that uncertainty about costs and requirements for environmental compliance is an important determinant of dairy producers… investment behavior. Ex ante forecasting of how uncertainty and irreversibility are likely to affect producers… responsiveness to agricultural technologies has implications for the design of environmental policies. Simulation modeling methods are described. The empirical analysis focuses on Texas producers… propensity to adopt free‐stall dairy housing. Free‐stall investments offer advantages for both productivity‐augmentation and pollution abatement, yet uncertainty and irreversibility are obstacles to adoption. Implications of this ex ante paradigm for policy design and implementation are discussed.
Endogenous Product Differentiation and Trade Policy: Implications for the U.S. Food Industry
Authors: Lanclos D. Kent , Hertel Thomas W.
Published: July 2006

The effects of tariffs on intermediate inputs and final goods in monopolistically competitive industries are assessed. Output per firm and firm numbers decline due to input tariffs. When coupled with output tariffs, the change in firm numbers is ambiguous. Numerical illustrations for U.S. food processing industries indicate the decline in firm numbers is larger than the decrease in firm output for input tariffs. Monopolistic competition strengthens the response to input tariffs compared to perfect competition. Considering the joint effects of input and output tariffs, the direction of change in total output may differ between monopolistic and perfect competition.
Efficiency Measurement in Swedish Dairy Farms: An Application of Rotating Panel Data, 1976–88
Authors: Kumbhakar Subal C. , Heshmati Almas
Published: July 2006

In this paper we introduce a new specification of technical inefficiency in panel data models. First, the overall technical inefficiency is decomposed into a persistent component and a residual component. Second, a multistep procedure is used to estimate the parameters of the production function as well as persistent and residual technical inefficiency. The advantage of this multistep procedure is that the parameter estimates are robust to distributional assumptions on the error components. Distributional assumptions are required in the final stage to estimate the residual component of technical inefficiency. The model is used to examine technical efficiency in Swedish dairy farms during the period 1976 to 1988.
Measuring the Comparative Advantage of Agricultural Activities: Domestic Resource Costs and the Social Cost‐Benefit Ratio
Authors: Masters William A. , Winter‐Nelson Alex
Published: July 2006

The Domestic Resource Cost (DRC) indicator is widely used in developing countries to measure comparative advantage and guide policy reforms. In this paper we demonstrate that the DRC formula is biased against activities that rely heavily on domestic factors (land and labor), and that a simple Social Cost‐Benefit (SCB) ratio is a generally superior measure of social profitability. The SCB uses the same data as the DRC in a formula which does not distort profitability rankings. The policy significance of improved measurement is shown using data from Kenya, where the DRC overstates the relative profitability of activities using large amounts of tradable inputs.
Meatpacker Conduct in Fed Cattle Pricing: An Investigation of Oligopsony Power
Authors: Koontz Stephen R. , Garcia Philip , Hudson Michael A.
Published: July 2006

Market power in regional fed cattle markets is measured with an econometric model which links behavior of the margin between boxed beef and fed cattle prices to an economic model of conduct. A noncooperative game theoretic model suggests that for tacitly collusive pricing behavior to persist in equilibrium, oligopsonists must follow a discontinuous pricing strategy. Meatpackers pay low prices for cattle during cooperative phases and purchase cattle aggressively during noncooperative phases. Tests for cooperative/noncooperative conduct and measures of market power are presented. Fed cattle prices in four direct trade regions in the central United States are examined. Evidence of cooperative/noncooperative conduct is present in all markets but has declined over time. Varying conduct across markets and over time suggests it is important to continue monitoring fed cattle markets to assure a competitive environment.
A Theoretical Foundation for Count Data Models
Authors: Hellerstein Daniel , Mendelsohn Robert
Published: July 2006

The paper develops a theoretical foundation for using count data models in travel cost analysis. Two micro models are developed: a restricted choice model and a repeated discrete choice model. We show that both models lead to identical welfare measures.
Land Price Volatility in a Geographically Dispersed Market
Authors: Benirschka Martin , Binkley James K.
Published: July 2006

Historical evidence and theory lead to a hypothesis that land price variation increases with distance to market. This hypothesis is tested with county data from five Cornbelt states during the period 1969 to 1987, when price changes were unusually large. Our data support the hypothesis. In the 70s, prices increased more in the Western Cornbelt than in the Eastern Cornbelt; in the 80s, the Western Cornbelt experienced the more precipitous price declines. Our hypothesis explains why Great Plains farmers have experienced greater financial problems during times of stress than have many other farmers.
Model Selection and Forecasting Ability of Theory‐Constrained Food Demand Systems
Authors: Kastens Terry L. , Brester Gary W.
Published: July 2006

Out‐of‐sample forecasting of annual U.S. per capita food consumption, applying data from 1923 to 1992, is used as a basis for model selection among the absolute price Rotterdam model, a first‐differenced linear approximate almost ideal demand system (FDLA/ALIDS) model, and a first‐differenced double‐log demand system. Conditional‐on‐price consumption forecasts derived from elasticities are determined to be superior to direct statistical model forecasts. Models with consumer theory imposed through parametric restrictions provide better forecasts than models with little theory‐imposition. For these data, a double‐log demand system is a superior forecaster to the Rotterdam model, which is superior to the FDLA/ALIDS model.