bluuebunny/crossref_metadata_2025_split huggingface dataset:
Investment in U.S. Agriculture
Authors: Vasavada Utpal , Chambers Robert G. 
Published: July 2006

AbstractResource adjustment problems in U.S. agriculture are motivated against the background of the farm problem. The adjustment cost hypothesis is invoked to specify and estimate consistently a system of dynamic investment demand and output supply equations by utilizing recent advances in dynamic duality theory. The investment demand equations assume the form of a multivariate flexible accelerator. Results indicate that labor, capital services, and land exhibited quasi‐fixity while intermediate materials were a variable factor. This can be construed as a form of asset fixity within aggregate U.S. agriculture. The univariate flexible accelerator hypothesis is rejected.
Risk Attitudes Measured by the Interval Approach: A Case Study of Kansas Farmers
Authors: Thomas Arthur C. 
Published: July 2006

AbstractRisk attitudes of farmers are of major importance to agricultural economists. This study utilizes a questionnaire designed to determine risk aversion levels. Risk aversion intervals are elicited using generalized stochastic dominance for thirty northeastern Kansas farmers in order to investigate the relationship between age and level of risk aversion, the consistency of risk aversion over five income ranges, and the accuracy of farmers self‐assessments of risk aversion. Results indicate no statistically significant difference between the risk aversion levels of younger and older farmers. The majority of farmers expressed fairly consistent risk attitudes over different income ranges. Finally, farmers show some ability to assess their own risk attitudes.
Potential Benefits of Agricultural Research and Extension in Peru
Authors: Norton George W. , Ganoza Victor G. , Pomareda Carlos 
Published: July 2006

AbstractThe benefits of agricultural research and extension are examined in an ex ante consumer‐producer surplus framework for five commodities in Peru. The effects of demand shifts over time and government pricing policies on research and extension benefits are considered. Data for the analysis include the results of research and extension questionnaires administered at seven sites in Peru. The projected rates of return to research and extension indicate substantial returns to public investments.
Bootstrapping Confidence Intervals: An Application to Forecasting the Supply of Pork
Authors: Prescott David M. , Stengos Thanasis 
Published: July 2006

AbstractThe article demonstrates how the distribution‐free method of bootstrapping can be applied to the construction of confidence intervals for forecasts generated by a dynamic econometric model. Because the exogenous variables must be forecast, the forecasts of the dependent variable are functions of stochastic forecast‐period exogenous variables. A dynamic model of pork supply is used to illustrate the procedure.
The Effect of Usage and Size on Tractor Depreciation
Authors: Perry Gregory M. , Bayaner Ahmet , Nixon Clair J. 
Published: July 2006

AbstractAn econometric model was estimated to explain prices for tractors sold at auction. Tractor age, hours of use, size, and condition were statistically significant explanatory variables. Real tractor depreciation most closely approximated a sum‐of‐the‐years digits pattern. Tractors sold at consignment and bankruptcy auctions brought a lower price than tractors sold by retiring farmers. High levels of usage did not greatly reduce tractor value, but tractors with low annual usage brought substantial premiums in the auction market.
The Demand for Cigarettes in Japan
Authors: Haden Kim 
Published: July 2006

AbstractA two‐stage budgeting procedure was used to estimate demand elasticities for cigarettes in Japan. Cigarettes were disaggregated into Japanese, U.S., and rest‐of‐world. Testing for habit effects was performed at both stages. Results indicated that habit effects occur for total expenditures on cigarettes but not between types.
Marketing Margins, Market Power, and Price Uncertainty
Authors: Schroeter John , Azzam Azzeddine 
Published: July 2006

AbstractThis paper provides a conceptual and empirical framework for analyzing marketing margins in a noncompetitive food‐processing industry facing output price uncertainty. The framework allows the decomposition of observed margins into components reflecting the marginal cost of the processing industry, oligopoly/oligopsony price distortions, and an output price risk component. The empirical procedure is applied to a time series of spreads between wholesale pork prices and farm prices of market hogs. The principal finding is that, while farm/wholesale margins are more consistent with competitive performance now than they were fifteen years ago, the output price risk component persisted throughout the sample period.
Causality between Dairy Farm Size and Productivity
Authors: Weersink Alfons , Tauer Loren W. 
Published: July 2006

AbstractThe direction of causality between dairy farm size and productivity is examined for each state using multivariate Granger‐causality tests. The results only partially support the view that technological change has caused increases in dairy farm size. The direction of causality appears to be more from size to productivity. Changes in productivity and average herd size appear driven by price changes.
Providing Crop Disaster Assistance through a Modified Deficiency Payment Program
Authors: Miranda Mario J. , Glauber Joseph W. 
Published: July 2006

AbstractFederal income support programs provide producers with only a limited degree of income protection in the event of a widespread crop failure. As an alternative to supplemental disaster assistance, we propose a modification of the deficiency payments program in which a producer's payment would be based on the difference between a target revenue and the average revenue in the producer's region. A regional target revenue progam would provide improved individual income protection without promoting moral hazard and would limit regional revenue shortfalls, thereby eliminating the demand for supplemental disaster assistance and reducing government costs.
The International Effects of U.S. Farm Subsidies
Authors: Fisher Eric O'N. , de Gorter Harry 
Published: July 2006

AbstractUsing dynamic programming, this paper examines effects of farm subsidies on U.S. exports of corn, cotton, rice, and wheat. The six policy simulations described here explore alternative proposals in the current round of the General Agreement on Tariffs and Trade. The analysis leads to two conclusions. First, abolishing domestic subsidies lowers world prices of these crops. Second, imposing tighter supply controls may not actually decrease exports in the short run.
Market Interventions, International Price Stabilization, and Welfare Implications
Authors: Devadoss S. 
Published: July 2006

AbstractThe welfare effects of price stabilization are quantified under free trade and under distortionary policies when an exporting country protects domestic producers with price supports, an importing country pursues a price‐fixing policy, and a second importing country follows a free trade policy. Results show that distortionary interventions cause greater world price variability. World gains from international price stabilization through a costless buffer stock scheme are higher under distortionary trade than under free trade.
Dynamic Measures of Scope and Scale Economies: An Application to German Agriculture
Authors: Fernandez‐Cornejo J. , Gempesaw C. M. , Elterich J. G. , Stefanou S. E. 
Published: July 2006

AbstractStatic concepts of multiproduct economies of scale and scope are extended into a dynamic setting within the cost of adjustment framework. Important properties of the dynamic measures are developed and the foundations of a dynamic theory of the firm generalizing static neoclassical theory are presented. Dynamic measures of scope and scale as well as shadow costs are estimated empirically for multiple‐output, multiple‐input German dairy farms operating under a production quota. Causes of scope economies are explored and a conceptual model to predict the evolution of the production structure of German farms is formulated.
Capital Gains and After‐Tax Internal Rates of Return
Authors: Robison Lindon J. , Hanson Steven D. 
Published: July 2006

AbstractNet present value models are constructed by discounting the after‐tax cash flows of a challenging investment by the after‐tax internal rates of return (IRRs) of a defending investment. After‐tax IRRs calculated for a defending investment are shown to depend on the defender's capital gains and allowable depreciation. The often recommended adjustment to the before‐tax IRRs of one minus the marginal income tax rate is not generally applicable. Failure to correctly adjust the discount rates (the defender's IRRs) for taxes may result in incorrect inferences from comparative static models and incorrect investment valuations from empirical models. Tax rate adjustments for farmland, stocks, and bonds are shown to be different and to have varied over time.
U.S. Cigarette Consumption: The Case of Low‐Income Women
Authors: Blaylock James R. , Blisard W. Noel 
Published: July 2006

AbstractWe use double‐hurdle or Cragg models to test whether decisions about smoking participation and consumption levels are separate, endogenous choices. We also estimate several dominance models which assume that standard corner solutions are not applicable. A complete dominance model with independence between the participation and consumption decisions is the preferred specification for our data. The most important variables influencing participation are region, number of children, education, and ethnicity. Region, age, race, ethnicity, and health status most affected consumption levels.
Futures Markets and Marketing Firms: The U.S. Soybean‐Processing Industry
Authors: Lence Sergio H. , Hayes Dermot J. , Meyers William H. 
Published: July 2006

AbstractA model of marketing firms in the presence of futures markets is presented and tested with data from the U.S. soybean‐processing industry. Results show that production increases if output futures prices rise, material input cash prices fall, or the output cash‐futures price relationship becomes more volatile. Sufficient assumptions for these results are expected‐utility‐maximizing competitive firms with nonincreasing absolute risk aversion and nonstochastic Leontief production functions, unbiased futures prices, and linearly related cash and futures prices. The standard marketing margin is inappropriate for analyzing market structure or risk in the presence of futures markets.
Computer Adoption and Use by New Mexico Nonfarm Agribusinesses
Authors: Baker Gregory A. 
Published: July 2006

AbstractThis research explores characteristics that influence computer adoption and successful use in nonfarm New Mexico agribusinesses. Results indicate that computer adoption is related to firm characteristics such as size and type of business, but unrelated to manager characteristics, including age and education. Manager involvement in the computer purchase decision is the most important characteristic affecting computer effectiveness as measured by user satisfaction and number of applications.
The Economic Implications of Farm Interest Groups' Beliefs
Authors: Vercammen James , Fulton Murray 
Published: July 2006

AbstractIt is usually assumed that interest groups fully understand their economic environment. A method of determining the economic beliefs of farm interest groups and of examining the implications for the groups if these beliefs do not conform to reality is presented. The approach obtains estimates of the perceived beliefs of a group from knowledge of its actions and assumptions regarding its objectives. A comparison of the optimal policy recommendations with those based on the perceived beliefs provides an indication of the benefits of conformity. An example involving farm organizations in western Canada illustrates the use of the method.
Decomposition of Milk Supply Response into Technology and Price‐Induced Effects
Authors: Blayney Don P. , Mittelhammer Ron C. 
Published: July 2006

AbstractAn economically relevant aggregate production function and an aggregate profit function are used to decompose milk supply response into technology and price effects. Decomposing milk supply response in this way provides insights into dairy industry efficiency and its impact on the effectiveness of price support programs as well as the extent to which aggregate milk production will expand despite prices motivating supply curtailment. An empirical analysis of supply response decomposition for the state of Washington is presented. Expected market price effects were obtained but were overwhelmed by technology effects resulting in milk output expansion when price signals motivated supply reduction.
The Effects of Pricing Policies on Water Conservation and Drainage
Authors: Caswell Margriet , Lichtenberg Erik , Zilberman David 
Published: July 2006

AbstractA general model of adoption of input‐conserving technologies by competitive firms is introduced using drip irrigation as an example. An environmental regulation such as a drainage effluent charge is shown to influence adoption. Early adopters are likely to be producers with less efficient fixed assets (land of low quality or antiquated capital), higher input costs (higher water prices or greater depth to groundwater), and in more environmentally sensitive regions. Simulations show that drainage regulations can be expected to play a major role in adoption of more efficient irrigation technologies in California. Thus, conservation may be a key to solving resource scarcity problems and reducing external environmental costs.
The Mean and Variance of the Mean‐Variance Decision Rule
Authors: Chalfant James A. , Collender Robert N. , Subramanian Shankar 
Published: July 2006

AbstractThe widely used mean‐variance approach to decisions under uncertainty requires estimates of the parameters of the joint distribution of returns. When optimal behavior is determined using estimates, rather than the true values, the decision is a random variable. We consider the reliability of mean‐variance analysis by examining the bias and variance‐covariance matrix for the decision vector. The latter shows that decisions based on estimated parameters can have a large variance around the true optimum. The results show that optimal decisions can differ substantially from those based on mean‐variance analysis.
Uncertainty and Split Nitrogen Application in Corn Production
Authors: Feinerman Eli , Choi E. Kwan , Johnson Stanley R. 
Published: July 2006

AbstractThe split application of nitrogen provides insurance against the risk that late spring application will be infeasible because of wet soil. Risk aversion and production uncertainty have little impact on total nitrogen available to the crop but do affect the split in application and the total nitrogen applied. A risk‐averse farmer applies more (less) nitrogen prior to planting and total nitrogen than a risk‐neutral farmer if nitrogen and water are substitutes (complements). For the case of substitutes, the nitrogen lost through leaching is the premium which the risk‐averse farmer pays to insure a proper level of nitrogen.
Seasonality and Stock‐Adjustment Models of Retail Food Store Inventory Behavior
Authors: Miller Stephen E. 
Published: July 2006

AbstractIn this paper I apply competing specifications of the stock‐adjustment process for retail inventories to both seasonal and seasonally adjusted retail food store data. My objective is to determine whether the contradictory evidence from previous research regarding the adequacy of stock‐adjustment models can be explained by differences in model specification and the treatment of seasonality. The results indicate that seasonally adjusted data obscure important aspects of retail inventory behavior. A stock‐adjustment model which allows for the role of ending inventories in meeting expected future sales performs better than a competing model.
Pricing Accuracy and Efficiency in a Pilot Electronic Hog Market
Authors: Rhodus W. Timothy , Baldwin E. Dean , Henderson Dennis R. 
Published: July 2006

AbstractDaily average prices for hogs sold through the Hog Accelerated Marketing System (HAMS), an experimental electronic market, were compared to those for similar grade hogs sold through Peoria terminal and Indiana direct markets. Results indicate that prices received by farmers using HAMS increased by $@@‐@@0.94 to $@@‐@@0.99 per 100 pounds relative to their previous alternative. Using frequency of price change and average amount of price change as measures of efficient pricing behavior, the electronic market exhibited more efficient behavior than the traditional markets, i.e., average prices changed from one day to the next more frequently and by smaller amounts.
Risk Behavior and Rational Expectations in the U.S. Broiler Market
Authors: Aradhyula Satheesh V. , Holt Matthew T. 
Published: July 2006

AbstractThis study examines the empirical implications of extending the rational expectations hypothesis (REH) to include price uncertainty. A general estimation framework that incorporates both the restrictions on structural parameters and the variance‐covariance terms is developed. GARCH time‐series processes are used to generate time‐varying expectations of both the means and the variances of exogenous variables. The empirical application is with a quarterly model of the U.S. broiler industry; the results indicate that the rational expectation of price variance is an important determinant of broiler supply. A formal test indicates that the restrictions implied by the REH cannot be rejected.
Estimating Multioutput Technologies
Authors: Chambers Robert G. , Just Richard E. 
Published: July 2006

AbstractThis paper solves the problem of determining fixed but allocatable input allocations by dual methods. A flexible, profit function approach for estimating input‐nonjoint technologies with allocatable fixed factors is developed. Variable input allocations can be calculated from the estimated technology. A correct test for input nonjointness that discriminates between true and apparent jointness is derived in a framework that permits fully linear estimation of a second‐order flexible technology. To illustrate, these methods are applied to the Just‐Zilberman‐Hochman data set.
Corner Solutions in Duality Models: A Cross‐Section Analysis of Dairy Production Decisions
Authors: Weaver Robert D. , Lass Daniel A. 
Published: July 2006

AbstractCorner solutions are often observed in cross‐section samples of farm‐level production decisions. An estimation strategy is presented and applied to a uniquely comprehensive data set for Pennsylvania dairy farms. A complete set of choice functions is derived consistent with multiple outputs and multiple inputs, expected profit maximation, and the existence of corner solutions with respect to the labor hiring decision. Results illustrate that substantial estimation bias may occur if the existence of corner solutions is not recognized. Estimated elasticities of choices with respect to input and net output prices indicate substantial responsiveness of choice to price. Results indicate that changes in education and acreage operated result in substantial changes in output and input mixes and that the differences in results for farms, with and without hired labor, are substantial.
Area‐Yield Crop Insurance Reconsidered
Authors: Miranda Mario J. 
Published: July 2006

AbstractOne of the more promising proposals for reforming the federal crop insurance program calls for both premium rates and indemnities to be based not on the producer's individual yield but rather on the aggregate yield of a surrounding area. Area‐yield crop insurance can provide more effective yield‐loss coverage than individually tailored insurance, without most of the adverse selection and moral hazard problems that have historically undermined the actuarial performance of the federal crop insurance program.
Effects of Technological Change and Institutional Reform on Production Growth in Chinese Agriculture
Authors: Fan Shenggen 
Published: July 2006

AbstractRecent rapid agricultural production growth in Chinese agriculture could be attributed to an increase in inputs, technological change, and institutional reform. An accounting approach was used to separate the relative contribution of these three factors. Institutional change, like the introduction of the household production responsibility system, has contributed to past growth in production. However, technological change is crucial to furthering production growth because of the limited potential for significant increase in the use of conventional inputs, in particular land. Continued institutional change must accompany corresponding technological changes.
The Calculation of Research Benefits with Linear and Nonlinear Specifications of Demand and Supply Functions
Authors: Voon Jan P. , Edwards Geoff W. 
Published: July 2006

AbstractThis paper provides a comparison of research benefits for linear and nonlinear constant elasticity (NLCE) specifications of supply and demand with a pivotal supply shift framework. The comparison allows for a sensitivity test of results to different values for demand and supply elasticity. The main finding is that the values of the gross annual research benefits calculated for the NLCE specification are larger than those calculated for the linear specification with price‐elastic supply but are smaller with price‐inelastic supply. The analysis suggests that the use of an NLCE specification and a pivotal shift due to research is usually preferable to use of a linear supply curve with pivotal shift.
Evaluating Prior Beliefs in a Demand System: The Case of Meat Demand in Canada
Authors: Chalfant James A. , Gray Richard S. , White Kenneth J. 
Published: July 2006

AbstractAn almost ideal demand system for meats is estimated using Canadian data. A Bayesian approach is used to impose inequality restrictions on substitution elasticities, via Monte Carlo integration and importance sampling, in order to conform with prior beliefs about curvature and monotonicity restrictions and substitution relationships. Results are more consistent with the concavity and monotonicity restrictions from demand theory than with the added restriction that all meats are substitutes.
The Application and Economic Interpretation of Selectivity Models
Authors: Huang Chung L. , Raunikar Robert , Misra Sukant 
Published: July 2006

AbstractSubstantial differences in economic interpretations may be inferred from the estimated selectivity model results. Using the demand for frozen concentrated orange juice (FCOJ) as an example, the study suggests that the consumption patterns are quite similar between national brand and private label when the marginal effects and elasticities are evaluated based on actual observations rather than unobserved latent variables. Results show that private label FCOJ is considered as a normal (inferior) good if the income effect is assessed based on actual (potential) purchases. The estimated cents‐off elasticities for private label FCOJ also vary substantially depending on which approach is used.
The Welfare Analytics of Transaction Costs, Externalities, and Institutional Choice
Authors: Griffin Ronald C. 
Published: July 2006

AbstractA natural result of the economist's participation in externality literature has been a strong emphasis upon market and price‐guided policies. Available theoretical foundations are insufficient for supporting this ideology. Absent is a conceptual framework which integrates institutional options and their attendant resource costs with what we know of resource and technology constraints. This paper addresses this omission by incorporating an explicit role for transaction costs into traditional welfare diagrammatics.