bluuebunny/crossref_metadata_2025 huggingface dataset:
Some Imperatives of the Green Revolution: Technical Efficiency and Ownership of Inputs in Indian Agriculture
Authors: Jha Raghbendra , Rhodes Mark J.
Published: September 2016

This paper attempts to ascertain the requirements (in terms of ownership of factors of production) for successful adaptation to the Green Revolution in Indian agriculture. We estimate stochastic production frontiers for wheat in two Indian states: Haryana (which has been significantly affected by the Green Revolution) and Madhya Pradesh (where the Green Revolution has had much less effect). In Haryana, but not in Madhya Pradesh, larger farm size and ownership of land and machines positively influence technical efficiency. Thus, with the Green Revolution advancing, land consolidation and vesting of clear ownership rights of land and capital with farmers becomes important.
Simulation of a Group Incentive Program for Farmer Adoption of Best Management Practices
Authors: Ipe Viju C. , DeVuyst Eric A. , Braden John B. , White David C.
Published: September 2016

A group incentive program to encourage farmer adoption of best management practices is simulated for a typical watershed in central Illinois. The incentive payments, program costs and environmental impacts of the program are simulated. The results show that the best management practices may not actually reduce farm profits but may increase farm profits and reduce environmental pollution. The sponsor in most cases may not have to pay anything under the incentive contract. This may bring about a win-win situation for the sponsor, the farmer participating in the program, and society as a whole. The program could be implemented as an educational effort to demonstrate the benefits of sound management practices.
Soil Management and the Farm Typology: Do Small Family Farms Manage Soil and Nutrient Resources Differently than Large Family Farms?
Authors: Soule Meredith J.
Published: September 2016

There is increasing recognition that farmers face constraints on their farming decisions depending on the their resources, stage in life, and lifestyle choices. These factors are captured in a new farm typology developed by the Economic Research Service. The farm typology's definition of small and large farms is used to test the commonly stated hypothesis that small farmers practice better land husbandry than do large farmers. The adoption of eleven different soil and nutrient management practices used by U.S. corn producers is analyzed with a bivariate logit model for each practice. The farm typology is found to be significantly associated with two of the practices—rotation with legumes and conservation tillage.
Examining Changes in Land Use after the Sale of Development Rights on Farms in Rhode Island
Authors: Wichelns Dennis , Nakao Megumi
Published: September 2016

Purchasable development rights (PDR) programs are generally considered to provide permanent protection of farmland because development rights are separated from the land in perpetuity. However, the programs do not require that farming activities be maintained in the future. Farming may be discontinued on PDR parcels due to changes in economic conditions or if the parcels are converted to non-farm, rural estates. Such changes may reduce the flow of public goods that citizens seek to obtain by implementing PDR programs. We examine changes in land use on PDR parcels to determine if current activities are consistent with program goals. While changes have occurred in the crops and livestock produced on Rhode Island farms, over time, all of the farms on which development rights were purchased during 1985 through 1999 are currently being farmed by the original owners or by new operators who have either purchased or leased the land.
Effectiveness of Intellectual Property Protection: Survey Evidence from China
Authors: Shi Guanming , Pray Carl , Zhang Wenhui
Published: September 2016

This paper examines Chinese pesticide firms’ use and perceptions of various means of intellectual property (IP) protection in protecting their innovations, using a unique dataset from 97 pesticide firms surveyed in 2008. These firms rate Chinese patents as quite effective in protecting their IP from infringement, although 70 percent of them state that improved enforcement is needed. Those firms that have been granted patents and those that claim their patents have been infringed upon both give lower ratings to the perceived effectiveness of patents. Trademarks are rated as less effective than patents, but firms that have had experience with patenting and infringement of patents tend to rate trademarks as more effective than those firms that do not have direct experience with the patent system. General government policies to encourage increased privatization, more private R&D, and higher education are associated with more faith in IP, but policies to strengthen IP by promoting mandatory IP training and the development of specialized IP divisions in the firms do not influence perceptions of IP effectiveness. We conclude that if the Chinese government wants to encourage innovation using IP protection, it must focus on improving the enforcement of patents.
The Effect of Fire Risk on the Critical Harvesting Times for Pacific Northwest Douglas-Fir When Carbon Price Is Stochastic
Authors: Creamer Selmin F. , Genz Alan , Blatner Keith A.
Published: September 2016

The forest owner's decision regarding when to harvest, based on forest's current worth, is analyzed using the real options approach for a representative Pacific Northwest Douglas-fir stand when the carbon price is stochastic and there is a fire risk. The problem is framed as a linear complementarity problem and solved using the fully implicit finite difference method combined with a penalty method. The fire risk results in lower option values and earlier critical harvesting times, whereas a wider carbon price range ($0–$100 versus $0–$10) produces contrary results and more responsiveness to the parameter changes.
Causality Between Captive Supplies and Cash Market Prices in the U.S. Cattle Procurement Market
Authors: Ji In Bae , Chung Chanjin
Published: September 2016

This study tests the causal direction between captive supply and cash market price in the U.S. cattle procurement market. Finding the correct causality should provide useful information to the decades-long debate on packers’ anti-competitive behavior in the U.S. cattle procurement market. It should also help researchers find better econometric specifications for the cash price-captive supply relationship. Two causality tests—the Granger test and the Modified Wald test—were conducted. Overall test results indicate that captive supply causes cash market price, and it favors the price-dependent model.
Redistributing Agricultural Data by a Dasymetric Mapping Methodology
Authors: de Belém Costa Freitas Martins Maria , de Sousa Xavier António Manuel , de Sousa Fragoso Rui Manuel
Published: September 2016

This paper examines the adaptation of dasymetric mapping methodologies to agricultural data, including their testing and transposition, in order to recover the underlying statistical surface (i.e., an approximation of the real distribution of data). A methodology based on the ideas of Gallego and Peedell (2001) and on the binary method is proposed. It has several steps: (i) the exclusion of target zones for which no observations exist (binary method), (ii) the application of an iterative process to define the most precise densities for data distribution, and (iii) the stratification/definition of sub-units with homogenous characteristics if the results of the previous step are not satisfactory, and the subsequent application of step two.

The methodology was applied in the Alentejo region of Portugal, using data from the 1999 Agricultural Census. Several counties are used as source zones. The aim was to generate a distribution of agro-forestry occupations as close as possible to reality. Two lines of analysis were followed: (i) application of the methodology simultaneously to all counties (definition of regional densities), and (ii) application of the methodology separately to the different subareas with similar characteristics (definition of sub-regional densities). For an easy application of the methodology, a computer tool was created, which allowed the easy optimization, validation, and exportation of the data into a Geographic Information System (GIS).

The results were validated using several error indicators at the county level, as well as in a sample of parishes. We show that the second variant of the methodology yielded more precise results, and is superior for the types of data available. This method yielded maps in which the distribution of the most relevant agro-forestry occupations is closest to reality.
Revisiting the Impact of Bt Corn Adoption by U.S. Farmers
Authors: Fernandez-Cornejo Jorge , Wechsler Seth
Published: September 2016

This study examines the impact of adopting Bt corn on farm profits, yields, and insecticide use. The study employs an econometric model that corrects for self-selection and simultaneity. The model is estimated using nationwide farm-level survey data for 2005. Regression analysis confirms that Bt adoption is associated with increased variable profits, yields, and seed demand. However, the results of this analysis suggest that Bt adoption is not significantly related to insecticide use. This result may be due to the fact that insect infestation levels were lower in 2005 than they were in previous years.
U.S. TRQs for Peanuts, Sugar, and Tobacco: Historical Allocation and Nondiscrimination
Authors: Skully David
Published: September 2016

U.S. peanut, sugar, and tobacco tariff rate quotas (TRQs) are allocated to suppliers on an historical market share basis. Once allocated they become difficult to redistribute to accommodate changes in comparative advantage among suppliers. The distribution of trade departs increasingly from the tariff-equivalent distribution advocated by the WTO principle of nondiscrimination. Article ΧIII of the GATT regarding the rules for historical allocation is examined and applied to four cases of historical allocation: domestic tobacco quota and TRQs for peanuts, sugar and tobacco. The difference between the law enforcement objective of the WTO and the Pareto optimization objective assumed by economists is stressed throughout.
Policy Endogeneity and the Effects of Trade on the Environment
Authors: Copeland Brian R.
Published: September 2016

This paper reviews recent work on the implications of endogenous policy for the effects of trade on the environment and the sustainability of renewable resource stocks. A recognition that pollution policy is endogenous has had a major impact on the trade and environment literature and has reversed some of the previously established empirical findings. Work on pollution has proceeded faster than work on renewable resources. I suggest some directions for future work in this area.
Achieving Environmental Objectives Under Reduced Domestic Agricultural Support and Trade Liberalization: An Empirical Application to Taiwan
Authors: Chang Hung-Hao , Boisvert Richard N. , Blandford David
Published: September 2016

We focus on rice policy reform required for Taiwan's admission to the WTO, and examine the effects, theoretically and empirically, of the re-instrumentation of domestic policy needed to achieve environmental objectives when both positive and negative environmental externalities exist. Policies that treat non-commodity attributes in agriculture as secondary to existing aims, such as income support, are unlikely to result in the desired supplies of environmental goods. Those supplies can be achieved at lower government and social costs using policy instruments to achieve environmental goals directly. Results are relatively insensitive to the social values assigned to environmental goods.
Agricultural Trade Liberalization and Greenhouse Gas Emissions: Modeling the Linkages Using a Partial Equilibrium Trade Model
Authors: Saunders Caroline , Wreford Anita
Published: September 2016

Global attempts to limit greenhouse gas (GHG) emissions may impact on agricultural trade and producer returns, particularly in countries such as New Zealand, where a relatively large proportion of GHG emissions originate from the agricultural sector. This study uses an extended partial equilibrium agricultural trade model to analyze the effects of trade policy liberalization on agricultural production and trade, as well as on GHG emissions. Further analysis combines trade liberalization with GHG mitigation policy in the New Zealand and European dairy sectors, and the effects on producer returns and GHG emissions are predicted. As expected, full trade liberalization in the OECD (Organization for Economic Cooperation and Development) countries enhances producer returns in New Zealand's dairy sector, but reduces returns in the European Union's dairy sector.
Valuing Water Quality Monitoring: A Contingent Valuation Experiment Involving Hypothetical and Real Payments
Authors: Spencer Michael A. , Swallow Stephen K. , Miller Christopher J.
Published: September 2016

This paper studies the preferences and willingness-to-pay of individuals for volunteer water quality monitoring programs. The study involves supporting water quality monitoring at two ponds in the state of Rhode Island. The paper uses both a hypothetical and a real-payment contingent valuation survey to directly measure individual preferences and willingness-to-pay (WTP) for volunteer water quality monitoring at the two ponds. The overall results of the study suggest that hypothetical WTP is not statistically greater than real WTP, and that the average survey respondent is willing to support water quality monitoring on one of the two ponds. The study also finds that the specified purpose of water quality monitoring and certain socioeconomic characteristics of a respondent significantly affect the respondent's decision to support volunteer water quality monitoring.
Incomplete Demand Systems, Corner Solutions, and Welfare Measurement
Authors: von Haefen Roger H.
Published: September 2016

This paper demonstrates how corner solutions raise difficulties for the specification, estimation, and use of incomplete demand systems for welfare measurement with disaggregate consumption data, as is common in the outdoor recreation literature. A simple analytical model of consumer behavior is used to elucidate the potential biases for welfare measurement arising from modeling the demand forMgoods as a function ofM + Nprices (N> 1) and income when individuals do not consume all goods in strictly positive quantities. Results from a Monte Carlo experiment suggest that these biases can be substantial for large-scale policy shocks when prices are highly correlated.
Sensitivity of WTP Estimates to Definition of ‘Yes’: Reinterpreting Expressed Response Intensity
Authors: Kobayashi Mimako , Rollins Kimberly , Evans M. D. R.
Published: September 2016

Willingness to pay (WTP) estimation typically involves some strategy for mapping nondichotomous contingent valuation (CV) responses onto a dichotomous yes/no dependent variable. We propose a new approach to selecting which responses qualify as ‘yes.’ We apply the proposed method to polychotomous CV data for preventative land management programs in the Great Basin. We also estimate WTP using other methods of response recoding found in the literature. By contrasting the results under different approaches, we demonstrate how and why WTP point estimates vary across recoding methods and discuss the comparative advantages of our more generalized recoding approach that is based on predicted probabilities of ‘yes’ responses.
Valuing the Prevention of an Infestation: The Threat of the New Zealand Mud Snail in Northern Nevada
Authors: Davis Alison , Moeltner Klaus
Published: September 2016

The Truckee/Carson/Walker River watershed in northern Nevada is under an imminent threat of infestation by the New Zealand mud snail, an aquatic nuisance species with the potential to harm recreational fisheries. We combine a utility-theoretic system-demand model of recreational angling with a Bayesian econometric framework to provide estimates of trip and welfare losses under different types of regulatory control policies. We find that such losses can be substantial, warranting immediate investments in preemptive strategies via public outreach and awareness campaigns.
The Welfare Effects of Restricting Off-Highway Vehicle Access to Public Lands
Authors: Jakus Paul M. , Keith John E. , Liu Lu , Blahna Dale
Published: September 2016

Off-highway vehicle (OHV) use is a rapidly growing outdoor activity that results in a host of environmental and management problems. Federal agencies have been directed to develop travel management plans to improve recreation experiences, reduce social conflicts, and diminish environmental impacts of OHVs. We examine the effect of land access restrictions on the welfare of OHV enthusiasts in Utah using Murdock's unobserved heterogeneity random utility model (Murdock 2006). Our models indicate that changing access to public lands from fully “open” to “limited” results in relatively small welfare losses, but that prohibiting access results in much larger welfare losses.
Innovations in Index Insurance for the Poor in Lower Income Countries
Authors: Skees Jerry R.
Published: September 2016

This article focuses on innovation in weather insurance designed to fit the special circumstances of the poor in lower income countries where rural and agricultural financial markets are largely underdeveloped. Index insurance is an innovation that circumvents many of the fundamental problems that hamper the development of insurance for weather risks in lower income countries. With index insurance, payments are made based upon an objective and independent index that serves as a proxy for significant losses to crops, livestock, or other property. For example, the index can be based upon extreme rainfall measures that create either drought or flooding. Weather stations or even satellite imagery coupled with computer models can be used to create reliable “indexes” as the basis of payments. This article reviews this innovation by providing the background for its development and the motivation for using the innovation for the poor.
Empirically Evaluating the Flexibility of the Johnson Family of Distributions: A Crop Insurance Application
Authors: Lu Yue , Ramirez Octavio A. , Rejesus Roderick M. , Knight Thomas O. , Sherrick Bruce J.
Published: September 2016

This article examines the flexibility of the Johnson system of distributions by assessing its performance in terms of modeling crop yields for the purpose of setting actuarially fair crop insurance premiums. Using data from corn farms in Illinois coupled with Monte Carlo simulation procedures, we found that average crop insurance premiums computed on the basis of the Johnson system provide reasonably accurate estimates even when the data are normal or come from a non-normal distribution other than the Johnson system (i.e., a beta). These results suggest that there is potential for using the Johnson system to rate previously uninsured crops that do not have historical insurance performance data upon which to base premium calculations.
Preference for Risk Management Information Sources: Implications for Extension and Outreach Programming
Authors: Rejesus Roderick M. , Knight Thomas O. , Jaramillo Mauricio , Coble Keith H. , Patrick George F. , Baquet Alan
Published: September 2016

This article examines farmers’ preferences for various risk management information sources. Our results suggest that information from risk management experts, in-depth materials studied on their own, and popular press outlets tend to be preferred and are ranked highly by producers. Using a regression model to investigate farmer/farm attributes that affect preference for a particular risk management information source, we find that younger farmers with college education, higher leverage, assets greater than $1 million, risk-loving attitudes, and who have used professional services (marketing consultants) tend to prefer information from risk management experts, the Internet, and marketing clubs/other producers. On the other hand, producers who prefer self-study of educational materials and popular press information sources tend to be younger, with lower leverage levels, and have used fewer professional services.
Scanner Data: New Opportunities for Demand and Competitive Strategy Analysis
Authors: Cotterill Ronald W.
Published: September 2016

This paper reviews prior research by agricultural economists on the demand for food products using scanner data. Thereafter, a differentiated product's oligopoly model with Bertrand price competition is developed and used to specify brand level demand and oligopoly price reaction equations. The model has sufficient detail to estimate brand level price elasticities and price response elasticities which in turn can be used to estimate three indices of market power. The first index estimated is the familiar Rothschild Index. The paper develops estimates two new indexes, the observed index and the Chamberlin quotient for tacit collusion. It concludes with comments on how the proposed method for the measurement of market power in a differentiated oligopoly can be improved.
Out-of-State Exports of Hardwood Manufacturing Industries in the Northern and Central Appalachian States
Authors: Bodenman John E. , Smith Stephen M. , Jones Stephen B.
Published: September 2016

Natural resource-based economic development efforts are becoming increasingly popular. Interest focuses on industries that export from a state, in order to expand the state and local economic base. The Northern and Central Appalachian states should be ideally positioned to benefit from forest-based resources, as they have extensive hardwood forests, a favorable growth-to-drain ratio, and easily accessible national and international markets. This paper examines the export levels of several hardwood product industries and uses tobit analysis to examine establishment and location characteristics related to higher export levels.
Updating Corn Program Payment Yields: Are Farm Operators Differentially Affected?
Authors: Thayer Sharon , Zulauf Carl , Schnitkey Gary , Forster Lynn
Published: September 2016

Crop yields which determine farm income deficiency payments have been frozen at 1981-1985 levels since 1986. Data from a longitudinal survey of Ohio farm operators are analyzed to evaluate whether updating payment yields will differentially affect farm operators. Results of the analysis imply that farm operators who operate larger farms, live in counties with higher yields, and have higher fertilizer and pesticide expenses per acre of corn will benefit more. In addition, low (high) existing payment yields are understated (overstated) relative to updated payment yields.
The Multifunctional Attributes of Northeastern Agriculture: A Research Agenda
Authors: Batie Sandra S.
Published: September 2016

In the United States’ Northeastern region, there is an increasing interest in the public benefits from agriculture. These benefits are frequently referred to as multifunctional attributes. The policy challenge is to find an effective way to reflect these public demands so that multifunctional agriculture can be profitable. There is a significant research agenda that accompanies this challenge. Research topics include assessing and understanding consumer demand for multifuntional attributes, estimating the long-run returns to those production systems which supply these attributes, and designing and evaluating institutional arrangements to supply them.
Land-Use Policy as Volitional Pragmatism
Authors: Bromley Daniel W.
Published: September 2016

Land-use conflicts highlight several myths about property rights. The central myth is that property rights are linked to natural rights, that property rights are durable and unchanging, and that any interference with these property rights requires public compensation. However, particular settings and circumstances lead to conflicting rights claims which the courts must sort through to determine where the more compelling rights claim resides. Situations are not protected because theyhaveproperty rights. Rather, those situations found worthy of protection by the courtsacquirethe status of a property right. Property rights are not discovered, but are created by the courts. Applied economists must build models of property rights conflicts predicated upon an epistemology of volitional pragmatism.
Expanding the Role and Function of the Cooperative Extension System in the University Setting
Authors: Ilvento Thomas W.
Published: September 2016

Cooperative extension has prided itself on being the outreach of the land grant university. However, with changes in the structure of the population, the economy, and agriculture in particular, extension has had to change as well. Increasingly, extension service providers are reminded that they cannot be all things to all people. There is also increasing competition from other campus units that feel they have an outreach mission. As traditional base funding sources decline, decisions must be made regarding the role and function of extension within the university system. This paper explores these issues using historical data, reports, and six case studies. The case studies provide insights into the ways different extension services have collaborated and partnered in university outreach. The case studies demonstrate that the role of extension reflects such things as past experiences, the level of support for extension, the administrative structure of extension and the university, and the vision of those within and without the extension system.
The Role of Expectations and Heterogeneous Preferences for Congestion in the Valuation of Recreation Benefits
Authors: Michael Jeffrey A. , Reiling Stephen D.
Published: September 2016

Studies of recreation congestion generally utilize nonmarket valuation techniques to determine the use level and entrance price that maximize aggregate recreation benefits for a specific recreation area. This paper improves upon these previous studies by relaxing the assumption of homogeneous preferences among visitors of the same recreation area and accounting for visitor expectations of congestion. The results indicate that failing to account for heterogeneous preferences for congestion by time of visit leads to overestimates of the benefits of relieving peak-time congestion, while accounting for expectations raises questions about the validity of the standard optimal use model.
Economic and Environmental Impacts of Planting Flexibility and Conservation Compliance: Lessons from the 1985 and 1990 Farm Bills for Future Farm Legislation
Authors: Wu Shunxiang , Walker David J. , Brusven Merlyn A.
Published: September 2016

The interaction of the planting flexibility and conservation compliance provisions from the 1985 and 1990 farm bills was evaluated using an integrated systems model. Results showed that flex and compliance policy in combination reduced net returns and government costs, diluted environmental benefits of conservation compliance, and increased grower responsiveness to market signals, compared with conservation compliance alone. Strict compliance and higher flex levels were the most detrimental to farm income and environmental goals. Decoupling in current and future policy proposals will promote conservation goals. Budgetary reductions in future farm policy could reduce conservation incentives.
Conjoint Analysis of Groundwater Protection Programs
Authors: Stevens Thomas H. , Barrett Christopher , Willis Cleve E.
Published: September 2016

Three conjoint models—a traditional ratings model, a ratings difference specification, and a binary response model—were used to value groundwater protection program alternatives. The last, which is virtually identical to a dichotomous choice contingent valuation specification, produced the smallest value estimates. This suggests that the conjoint model is very sensitive to model specification and that traditional conjoint models may overestimate economic value because many respondents are not in the market for the commodity being valued.
Supply Response in the Northeastern Fresh Tomato Market: Cointegration and Error Correction Analysis
Authors: Weliwita Ananda , Govindasamy Ramu
Published: September 2016

This paper reexamines supply response in the Northeastern fresh tomato market during the 1949–94 period by employing cointegration and error correction technique. It tests whether there has been a long-run equilibrium relationship between Northeastern production and a set of price and nonprice factors that influence it. Findings suggest that wage rate, imports from competing regions, and urban pressure have had significant negative impacts on regional production. The negative relationship between price and production may have resulted from the strong negative effects exerted by the nonprice factors.
Constraints or Cooperation? Determinants of Secondary Forest Cover Under Shifting Cultivation
Authors: Klemick Heather
Published: September 2016

This study examines the drivers of land use in a shifting cultivation system with forest fallow. Forest fallow provides on-farm soil quality benefits, local hydrological regulation, and global public goods. An optimal control model demonstrates that farmers have an incentive to fallow less than is socially optimal, though market failures limiting crop production can have a countervailing effect by encouraging fallow. An econometric model estimated using data from the Brazilian Amazon suggests that fallowing does not result from internalization of local fallow services but instead is associated with poor market access and labor and liquidity constraints.
Variation in Environmental Regulations in California and Effects on Dairy Location
Authors: Sneeringer Stacy , Hogle Regina
Published: September 2016

In recent decades, urban encroachment and increasing environmental regulation have impacted California's dairy industry. A complicated set of environmental legislation affects dairies in the state, and can differ depending on location, creating the possibility for within-state pollution havens. This article details the regional, state, and federal environmental regulation of California's dairy industry, and examines data to see if it matches a hypothesis of regulation affecting dairy location. Using county-year data, we show evidence of changing dairy location within the state matching times of local legislative action. The Central Valley gained production, while the more regulated and urban-affected Los Angeles area lost. Large dairies have increased by 150 percent in the Central Valley, even as the number of small farms in the region declined by 40 percent. More rigorous analysis is necessary to discern the relative impacts of land prices and regulation on dairy location.
An Examination of Inverse Demand Models: An Application to the U. S. Crawfish Industry
Authors: Lee Youngjae , Kennedy P. Lynn
Published: September 2016

This study analyzes quantity impacts of imported crawfish tailmeat on Louisiana crawfish tailmeat prices, and demonstrates the statistical validity and proper interpretation of cross substitution within inverse demand systems. Among five inverse demand systems, the Differential Inverse National Bureau of Research (DINBR) model shows no violation of econometric assumptions for the data analyzed. By using Allais coefficients proposed by Barten and Bettendorf (1989), we show substitutability among the five fish species.
Some Economic Benefits and Costs of Vegetarianism
Authors: Lusk Jayson L. , Norwood F. Bailey
Published: September 2016

It is now fashionable in many circles to advocate vegetarianism, and many activist groups are vocal in their aim to convert the human race to vegetarians. What would be the economic costs and benefits of a shift away from meat consumption? In this article we provide some partial answers to this question. In three separate analyses we show (i) that it is much more costly to produce energy and protein from animal-based sources than from some plant-based sources, (ii) that sizable demand shifts away from meat consumption would result in significantly lower corn prices and production, and (iii) that the average U.S. consumer places a higher value on having meat in his or her diet than having any other food group. This information should help move forward our understanding of the economics of vegetarianism and provide an objective stance from which to evaluate the claims being made by advocates of vegetarianism.
The Effects of Trivial Attributes on Choice of Food Products
Authors: Miljkovic Dragan , Gong Jian , Lehrke Linda
Published: September 2016

Trivial or irrelevant attributes are defined as attributes that do not create a meaningful difference in a brand's performance. The objective of this paper is to determine if and how trivial attributes affect consumers in their choice of variety/brands of food products including frozen green beans, orange juice, canola oil, and frosted strawberry toaster pastries. Sixty subjects participated in the experiment. Subjects understood that trivial attributes are less important than substantive attributes. Substantive (important) quality attributes and economic variables affecting choice were all perceived equal across brands by the subjects in the experiment. Two critical driving forces in determining the presence and direction of the effect of a trivial attribute on the consumer choice are the size of the choice set and the type of trivial attribute, i.e., product versus promotional attribute.
Assessing the Demand for a Functional Food Product: Is There Cannibalization in the Orange Juice Category?
Authors: Yuan Yan , Capps Oral , Nayga Rodolfo M.
Published: September 2016

The demand for functional foods has increased notably in recent years due to growing consumer interest in diet and health issues. Currently, the food industry is introducing many types of new food products with functional attributes. Consequently, cannibalization is a critical issue for firms that offer multiple products within a certain product category. The identification and assessment of cannibalization are integral factors when making strategic decisions about new product introductions. Using scanner data from Information Resources, Inc. (IRI), pertaining to a particular functional food, namely a phytosterol-enriched product for orange juice, we find that no cannibalization effects exist with respect to its introduction. We also provide estimates of own-price and cross-price elasticities of the orange juice category using a synthetic demand system.
An Hedonic Analysis of the Effects of Lake Water Clarity on New Hampshire Lakefront Properties
Authors: Gibbs Julie P. , Halstead John M. , Boyle Kevin J. , Huang Ju-Chin
Published: September 2016

Policy makers often face the problem of evaluating how water quality affects a region's economic well-being. Using water clarity as a measure of the degree of eutrophication levels (as a lake becomes inundated with nutrients, water clarity decreases markedly), analysis is performed on sales data collected over a six-year period. Our results indicate that water clarity has a significant effect on prices paid for residential properties. Effects of a one-meter change in clarity on property value are also estimated for an average lake in four real estate market areas in New Hampshire, with effects differing substantially by area. Our findings provide state and local policy makers a measure of the cost of water quality degradation as measured by changes in water clarity, and demonstrate that protecting water quality may have a positive effect on property tax revenues.
The Dynamics of Wealth Concentration Among Farm Operator Households
Authors: El-Osta Hisham S. , Morehart Mitchell J.
Published: September 2016

The method of computing wealth shares accruing to lowest and highest quintiles, along with the concepts of the Lorenz curve and the Gini coefficient, are used in conjunction with data from the 1996 and 1999 Agricultural Resource Management Study (ARMS) survey to measure the distribution of wealth among U.S. farm operator households. Findings show that the distribution of wealth in 1996 was slightly more concentrated than in 1999, with the farm wealth component contributing significantly more toward measured concentration in both years than the nonfarm wealth component. The robustness of the findings under varied value judgments concerning society's level of aversion to wealth concentration is also examined.
Modeling U.S. Butter Consumption with Zero Observations
Authors: Yen Steven T. , Su Shew-Jiuan
Published: September 2016

A heteroscedastic double-hurdle model is used to investigate household butter consumption in the United States. Results suggest that failure to incorporate heteroscedastic errors may lead to unreliable elasticity estimates. Decomposition of the effects of variables leads to insightful information and makes the double-hurdle model a more useful tool in micro demand analysis. Larger and higher-income households are more likely to consume butter than others and also consume more, but income elasticity is very small. Age, region, and seasonality are among the other significant determinants of household butter consumption.
Industrialization of U.S. Agriculture: Policy, Research, and Education Needs
Authors: Barry Peter J.
Published: September 2016

The industrialization of agriculture refers to the continued consolidation of farms and to the growing use of production and marketing contracts and vertical integration among input suppliers, lenders, agricultural producers, processors, and distributors of food and fiber products, domestically and globally. Industrialization is strongly affecting the structure and performance of farms and agribusiness firms; the distribution of risk, returns, and the ownership and control of resources in the food and fiber system; locations of production; competitiveness in international markets; the effectiveness of agricultural policy; business activity, income, family welfare and employment in rural communities; and environmental quality and control. Research is urgently needed to measure these effects, understand the complex underlying factors, and evaluate policy alternatives that influence and are influenced by the industrialization of agriculture.
Economists and the 2002 Farm Bill: What Is the Value-Added of Policy Analysis?
Authors: Gardner Bruce
Published: September 2016

The 2002 Farm Act is used as a case study of three problematic considerations related to economists' role in policy issues: priority on economic efficiency versus income distribution, the role of benefit-cost analysis, and appropriate policies given market power of agribusiness. The results of the 2002 Act relevant to each of these issues have been widely criticized, raising questions about the effectiveness of economists' involvement. However, given the uncertainties about many key program effects, criticisms of the Act are themselves in question. In this context, the role of economists is seen analytically as generating information for Bayesian decision makers, and practically as gaining attention for that information in the political process.
The Food Costs of Healthier School Lunches
Authors: Newman Constance
Published: September 2016

The U.S. Department of Agriculture proposed and adopted a new set of meal pattern requirements for the National School Lunch Program that will allow schools to claim 6 cents more in lunch reimbursement rates. This study analyzes the food costs of school menus in 2005 that met many of the proposed requirements. Overall, schools that served more, and more diverse, non-starchy vegetables had higher average food costs, and schools that served menus with lower calories had lower food costs. The food costs of school lunch menus that met the combined standards for dark green vegetables, orange vegetables, other vegetables, lowfat/fat-free milk, and fruit averaged 9 cents more per meal in 2005 dollars when other major factors that could affect food choices are taken into account. The main sources of higher costs appear to be related to the provisions for more vegetables.
The Role of Variety in Increasing the Consumption of Fruits and Vegetables Among Children
Authors: Just David R. , Lund Jesse , Price Joseph
Published: September 2016

We use observational data from 22 elementary schools and over 48,000 child-day observations to examine the relationship between the number of fruit and vegetable items and the consumption patterns of children during school lunch. We find that each additional fruit or vegetable item that is offered increases the fraction of children who eat at least one serving of fruits and vegetables by 12 percent. We also use our observational data to provide practical information about which items are most likely to be eaten by children during lunch and compare this to the cost and nutritional quality of these items.
An Exploration of the Relationship Between Income and Eating Behavior
Authors: Chen Susan E. , Liu Jing , Binkley James K.
Published: September 2016

This paper explores the relationship between income and eating behavior. To do this we examine choice in two food categories: milk and soft drinks. These categories have varieties differing in health qualities but either no differences in cost or lower cost for the healthier types. By examining food choices when there are no measurable cost differences but clear health differences, we are able to isolate the association between income and healthy eating behavior. We find a negative association between income and dietary intake of higher-calorie types of milk and soft drinks. Our estimates are consistent across the five sets of the National Health and Nutrition Examination Survey and the Continuing Survey of Food Intakes by Individuals data that we study. For 2005 we estimate that an income increase of $10,000 is linked to a reduction in 377 calories from milk and 2,555 calories from soft drinks per year. Our results suggest that the cost of food may not be the only reason why low income people have less healthy diets.
The Role of Confidence in Truthful Revelation of Private Values
Authors: Parkhurst Gregory M. , Nowell Clifford
Published: September 2016

Recent research shows that disparities between willingness to pay (WTP) and willingness to accept (WTA) disappear with market experience and training. In effect, preferences can be refined by eliminating subjects’ misconceptions regarding elicitation procedures. We use a stated measure of confidence as a proxy for misconceptions and test the influence of confidence on truthful revelation of induced values in WTP and WTA auctions using the Becker-DeGroot-Marschak (BDM) mechanism. The results indicate that confidence matters for buyers and sellers. With confidence, WTA and WTP measures converge, and people with greater confidence choose the dominant bidding strategy more frequently.
What Interests Environmental and Resource Economists? A Comparison of Research Output in Agricultural Economics versus Environmental Economics
Authors: Grijalva Therese C. , Nowell Clifford
Published: September 2016

We compare the research productivity of faculties housed in departments offering doctoral degrees in agricultural economics (AgEcon) with faculties housed in departments offering doctoral degrees in economics (Econ) that specialize in environmental and resource economics. Rankings are based on faculty publications in EconLit between 1985 and 2010. We find that AgEcon departments publish more papers and rate higher overall on productivity measures than Econ departments but that average productivity is greater for Econ departments. AgEcon publications dominate the Journal of Economic Literature's (JEL's) agriculture (Q1) subdiscipline while Econ and AgEcon departments publish evenly in the other Q subdisciplines.
Ethanol, the Agricultural Economy, and Rural Incomes in the United States: A Bivariate Econometric Approach
Authors: Akinfenwa Samson O. , Qasmi Bashir A.
Published: September 2016

We examine the causal relationships between ethanol production and the agricultural economy and rural incomes in the United States for 1981 through 2010. We use bivariate cointegration and Granger causality procedures and account for two structural breaks in ethanol production in the analysis, which shows that ethanol production Granger-caused agricultural net value added, agriculture's share of U.S. employment, net returns to operators, and rural income per capita in the short run. These causal relationships generally persisted in the long run. However, the causality between ethanol and rural incomes diminished in the long run.
Risk Management Behavior of a Forest Owner to Address Growth Risk
Authors: Brunette Marielle , Couture Stéphane
Published: September 2016

We analyze risk management behavior (financial savingsversusphysical savings) of a private forest owner who values amenities in relation to uncertainty about timber growth. In a two-period model, we study the properties of optimal current and future harvesting and risk management decisions. We show that the forest owner chooses the tool with the highest rate of return unless both risk management instruments are perfect substitutes. We prove that future harvesting is greater under physical savings than under financial savings. Comparative static results on amenity preferences, incomes, forest stocks, timber prices, and opportunity costs are investigated.
Voluntary Pollution Abatement and Regulation
Authors: Delgado Michael S. , Khanna Neha
Published: September 2016

We consider private provision of an environmental public good and the link between voluntary pollution-abatement markets and the optimal level of mandatory environmental regulation. We show that voluntary abatement markets react to the level of mandatory abatement imposed and that an optimal regulatory policy must account for that reaction. We consider several assumptions about consumer behavior and find that the voluntary market's reaction to regulation depends on the motivating behavior of consumers. Whether the optimal level of mandatory abatement is higher than the level provided by traditional settings depends on the direction and magnitude of the voluntary market's reaction to changes in mandatory abatement.
Assessing the Impact of Health Insurance and Other Socioeconomic Factors on Inequality in Health Care Expenditures among Farm Households
Authors: El-Osta Hisham S.
Published: September 2016

This research uses data from the 2005–2011 Agricultural Resource Management Survey and a two-part-model regression procedure to examine the impact of health insurance and other relevant socioeconomic factors on the distribution of health care expenditures among U.S. farm households. Findings show the importance of privately acquired health insurance coverage in explaining inequality in health care expenditures. The results also reveal, among other things, a statistical positive association between health care expenditures and farm operators who fall into the baby boomer age category. A similar statistical association is found for higher income levels but not for inequality of income.
The Impact of Parcel Structure on the Efficiency of Finnish Dairy Farms
Authors: Niskanen Olli , Heikkilä Anna-Maija
Published: September 2016

In Finland, expanding dairy farms often face the problem of additional fields being geographically distant and only available as small parcels. We develop a stochastic production frontier model to estimate the technical efficiency of Finnish dairy farms and simulate the effect of parcel distance and parcel size on the efficiency of an average farm for 2000 through 2009. The overall development of technical efficiency is positive during the study period but increases in distance and decreases in parcel size both significantly reduce farm efficiency. Therefore, efforts to improve the parcel structure are justified.