bluuebunny/crossref_metadata_2025_split huggingface dataset:
Distribution of Gains from Research and Promotion in Multi‐Stage Production Systems: The Case of the U.S. Beef and Pork Industries
Authors: Wohlgenant Michael K. 
Published: July 2006

AbstractA producer‐financed program that leads to either an increase in retail demand from promotion or a decrease in marketing costs from research will generate returns to producers that are generally smaller than returns generated through an equivalent change in producer supply from research. The distribution of gains depends on the degree of substitutibility between farm and nonfarm inputs. Comparative statics of equal absolute changes in demand, supply, and marketing costs in the U.S. beef and pork industries show the significance of input substitutibility for distribution of gains, and sensitivity of the results to beef and pork demand interrelationships.
Efficiency of Decoupled Farm Programs Under Distortionary Taxation
Authors: Moschini Giancarlo , Sckokai Paolo 
Published: July 2006

AbstractWhen lump‐sum taxation is not feasible, decoupled transfers to farmers (which require raising government revenue) will entail welfare loss somewhere in the economy. Assuming the government's objective is to assure a given welfare level for farmers, we show that when decoupling is possible, free trade is always superior to some tariff protection for a small country, even under distortionary taxation. As expected, for a large country there is scope for an optimal tariff policy that improves the terms of trade. However, we show a separation between the exercise of market power through an optimal tariff, and the interaction of distortionary taxation with transfers to farmers. We conclude that decoupling is usually desirable, even in a distorted economy in which lump‐sum taxation is not feasible.
Pesticides, Productivity, and Farmer Health: A Philippine Case Study
Authors: Antle John M. , Pingali Prabhu L. 
Published: July 2006

AbstractProduction data from a farm‐level survey were integrated with health data collected from the same population of farmers to measure the impacts of pesticide use on farmer health and the impacts of farmer health on productivity in two rice‐producing regions of the Philippines. The relationships were then used in a simulation analysis to investigate the health and productivity tradeoffs implied by a policy to restrict pesticide use. Results show that pesticide use has a negative effect on farmer health, that farmer health has a positive effect on productivity, and that there are likely to be social gains from a reduction in insecticide use in Philippine rice production. We conclude with a discussion of the implications of the findings for pesticide policy in developing countries and for allocation of resources in agricultural research.
Retail‐Level Hedonics and the Valuation of Milk Components
Authors: Lenz John E. , Mittelhammer Ron C. , Shi Hongqi 
Published: July 2006

AbstractA retail‐level hedonic model for analyzing the value of milk components contained in aggregate dairy product commodities is developed and applied to household food consumption survey data. The findings support Perrin's conjecture that a hedonic approach applied at the retail level can be used to value milk components. Milk component values are found to be a function of household sociodemographic variables. The sample‐weighted average implicit fat value estimate was very similar to values published in two of three previous component value analyses in the Journal, but protein values were significantly different.
Managerial Inputs and the Growth of Rural Small Firms
Authors: Variyam Jayachandran N. , Kraybill David S. 
Published: July 2006

AbstractGrowth of rural small firms is influenced by education and work effort of owner or manager, and by degree of technology adoption and planning. Results are based on analysis of data from a small business survey in twenty‐five rural Georgia counties. Employment growth in a sample of manufacturing, sales, and service firms is examined. Independent firms, sole proprietorships, and firms owned by women are found to have significantly lower‐than‐average growth rates. The study confirms earlier findings that firm growth is negatively related to firm size and age. Implications for small business assistance programs are discussed.
A Demand Systems Analysis of Food Commodities by U.S. Households Segmented by Income
Authors: Park John L. , Holcomb Rodney B. , Raper Kellie Curry , Capps Oral 
Published: July 2006

AbstractUsing the 1987–88 Nationwide Food Consumption Survey, twelve food commodity groups were analyzed according to household poverty status. Parameter estimates were used to obtain subsistence expenditures, own‐price elasticities, expenditure elasticities, and income elasticities. Own‐price elasticities were similar between the income groups for most commodities. However, income elasticities were consistently higher for the lower‐income group. The use of average estimates of price and income elasticities for the population as a whole for the projection of individual commodity demands is not likely to be successful if notable changes are evident in income distribution.
Crop Insurance, Moral Hazard, and Agricultural Chemical Use
Authors: Smith Vincent H. , Goodwin Barry K. 
Published: July 2006

AbstractThis study examines the relationship between chemical input use and crop insurance purchase decisions for a sample of Kansas dryland wheat farmers. Recent research by Horowitz and Lichtenberg indicated that, contrary to conventional wisdom, farmers that purchased insurance tended to use relatively more chemical inputs than farmers who did not insure. In contrast, our results confirm the conventional view that moral hazard incentives lead insured farmers to use fewer chemical inputs. Implications for the joint determination of insurance and input use decisions and appropriate estimation techniques are discussed.
Intraseason Harvest Regulation for Fish and Wildlife Recreation: An Application to Fishery Policy
Authors: Swallow Stephen K. 
Published: July 2006

AbstractResource managers often ignore economic information in decisions about recreational use of fish and wildlife resources. By evaluating within‐season harvest regulations, economists can identify strategies to improve recreational benefits without compromising management objectives represented in an annual harvest quota. Theoretical analysis raises a potential for bias in applied welfare analysis if regulations inefficiently trade off fishing quality and exogenous seasonality in anglers' demand. Simulations demonstrate that efficient regulations may limit daily harvests during the best fishing season or during the peak season of demand. Inadequate knowledge of recreationists' behavioral responses to quality and regulations currently limits policy assessments.
Spatial Competition, Uniform Pricing, and Transportation Efficiency in the California Processing Tomato Industry
Authors: Durham Catherine A. , Sexton Richard J. , Song Joo Ho 
Published: July 2006

AbstractThis study examines the role of spatial pricing in the allocation of processing tomatoes from farms to the thirty‐two processing facilities located in northern and central California. A simple theoretical model illustrates that the industry's uniform pricing policy encourages market overlap and excessive transportation costs relative to FOB pricing. A nonlinear mathematical programming model is developed to determine the optimal allocation of processing tomatoes. This allocation is then compared to the estimated actual allocation. The analysis reveals foregone profits of only 1.9% from inefficient product allocation. Simulation results reveal significant competition among processors despite their separation in many cases by long distances.
Farmers' Investment Behavior: An Empirical Assessment of Two Specifications of Expectations
Authors: Thijssen Geert 
Published: July 2006

AbstractThe capital investment decision is modeled and two different assumptions about expectations are compared and tested using panel data for Dutch dairy farms. The utilization of panel data allowed to account for the possibility that the intercept in the function for capital varies over the farms. The models are estimated using the generalized method of moments (GMM) for dynamic panel data. The model based on static expectations fits the data well. The results obtained from the rational expectations model are not consistent with the theory.
An Examination of the Effects of Price Supports and Federal Crop Insurance Upon the Economic Growth, Capital Structure, and Financial Survival of Wheat Growers in the Northern High Plains
Authors: Atwood Joseph A. , Watts Myles J. , Baquet Alan E. 
Published: July 2006

AbstractThis study examines the effects of both farm price support programs and federally subsidized crop insurance programs upon the profitability, capital structure, and financial survival rates of High Plains wheat producers. The alternative farm programs are analyzed in an intertemporal dynamic setting. Results indicate that the producer's first response to risk is to restrict the use of debt. Price support programs and crop insurance are substitutes in reducing producer risk. The availability of crop insurance in a setting with price supports allows producers to service higher levels of debt with no increase in risk.
An Empirical Investigation of the Consistency of Nested Logit Models with Utility Maximization
Authors: Kling Catherine L. , Herriges Joseph A. 
Published: July 2006

AbstractGlobal conditions under which nested logit models are consistent with utility maximization are provided by Daly and Zachary and by McFadden. Recently, Börsch‐Supan and Herriges and Kling have provided conditions under which a nested logit model is locally consistent. However, previous work has not discussed implementation of these conditions. Here, three alternative approaches to checking and formally testing for the consistency conditions using classical statistics are investigated. In addition, a Bayesian approach to interpreting and imposing the local consistency conditions is provided. The application is based on anglers' choices regarding sportfishing alternatives in southern California.
Farm Consumption Behavior in the Presence of Uncertainty and Restrictions on Credit
Authors: Phimister Euan 
Published: July 2006

AbstractFarm consumption behavior has an important indirect role in determining the ability of farms to invest and grow. In this paper I examine the effect on farm consumption behavior of the presence of quantitative restrictions on farm borrowing. Using a form of the life cycle model which allows for both consumption and production by the household, the effect of borrowing restrictions on consumption behavior is tested econometrically for a sample of Dutch farm households. The results suggest that the life cycle model without borrowing restrictions is rejected by the data.
Hedging with Crop Yield Futures: A Mean‐Variance Analysis
Authors: Vukina Tomislav , Li Dong‐feng , Holthausen Duncan M. 
Published: July 2006

AbstractThis investigation into the use of new Chicago Board of Trade yield futures to manage price and yield risks shows that a risk‐minimizing firm can reduce its variance of profit by hedging in both markets compared to hedging in price futures only. The greater the variance of the contract underlying yield, the less effective the two‐instrument hedge. Hedging effectiveness of the dual strategy also depends on the price and yield bases, and the effect of a change in either basis depends on whether the established crop yield futures position is short or long.
Measuring Welfare Impacts from Equilibrium Supply and Demand Curves: An Antidumping Case Study
Authors: Canning Patrick N. , Vroomen Harry 
Published: July 2006

AbstractIn this paper we present an applied welfare analysis in the tradition of Harberger that confronts the notable exceptions to the appropriate use of a single market measure for general equilibrium welfare analysis. We bring together the results of several elaborative studies on Harberger's 1971 essay and present some empirical remedies that address the notable exceptions to the appropriate use of estimates made in a single market. A case study involving a U.S. antidumping suit against Canadian exports of potash is presented.
Information Asymmetry as a Reason for Food Industry Vertical Integration
Authors: Hennessy David A. 
Published: July 2006

AbstractThree trends that have been subject to recent discussion are a movement away from undifferentiated agricultural commodities toward more specialized products, reduced reliance on open markets for raw agricultural products, and a movement toward agricultural industrialization. Recent research suggests that demographic trends may be causing the first trend, while the other two are closely related phenomena. This research suggests that information externalities, arising from uncertainty concerning the nature of food quality and problems in detecting quality, may be reasons why vertical coordination is being used to circumvent the marketplace.
The Timing of Land Development: An Invariance Result
Authors: Batabyal Amitrajeet A. 
Published: July 2006

AbstractThe Arrow‐Fisher‐Henry (AFH) analysis of land development under uncertainty has been conducted in a two‐period model. Recently, Capozza and Helsley (1990) and Batabyal (1995) have addressed the question of land development under uncertainty in a many‐period setting. In this paper, aspects of this literature are extended by analyzing the land development question in a Markov decision theoretic framework. Inter alia, it is shown that the timing of land development is invariant to the manner in which a landowner uses information about the consequences of development.
Technology as an Agricultural Pollution Control Policy
Authors: Abler David G. , Shortle James S. 
Published: July 2006

AbstractIn this paper we consider the market‐level impacts of factor‐augmenting innovations designed to reduce the use of fertilizers and pesticides, first within the context of a simple two‐factor model, and then through a simulation model of the U.S. corn market. In both models, the impacts depend on the output demand elasticity and input substitution elasticities. The principal conclusion of the simulation analysis is that the potential for new techniques to reduce the use of agricultural chemicals is limited. Capital‐augmenting innovations would actually raise fertilizer and pesticide usage. Land‐augmenting innovations would also tend to increase pesticide usage.
Damage Control and Increasing Returns
Authors: Fox Glenn , Weersink Alfons 
Published: July 2006

AbstractThe indirect action of damage control inputs means the marginal productivity of these inputs depends on their effectiveness in controlling the level and size of production loss caused by the damage agent. Increasing returns to damage control inputs can occur even when control and damage functions are concave. The result implies more attention needs to be paid to the functional form selection for damage and control functions in empirical work on pest control and other types of damage control inputs. In addition, the possibility of increasing returns may undermine the general use of taxes to reduce pesticide use.
The Conservation Reserve Program as a Least‐Cost Land Retirement Mechanism
Authors: Smith Rodney B.W. 
Published: July 2006

AbstractMechanism design theory is used to characterize the properties of a least‐cost CRP. If marginal land rents decrease with acres farmed then a least‐cost CRP is a set of nonlinear price schedules. If marginal land rents are independent of acres farmed then an offer system constitutes a least‐cost CRP. The least‐cost offer system gives a useful estimate of the upper bound of a least‐cost CRP. Empirical results suggest that a 34‐million‐acre CRP should have cost no more than $@@‐@@1 billion per year.
Using Random Utility Models to Estimate the Recreational Value of Estuarine Resources
Authors: Kaoru Yoshiaki , Smith V. Kerry , Liu Jin Long 
Published: July 2006

AbstractIn this paper we describe a model using a household production framework to link measures of nonpoint source pollution to fishing quality and a random utility model to describe how that quality influences sport fishing parties' decisions in North Carolina. The results provide clear support for using a model that evaluates the effects of pollution on the activities and decisions associated with the fishing activity once a trip is taken. Site selection decisions are then conditioned on the anticipated quality of fishing sites. The framework also has the advantage of linking the spatial, technical, and economic information required to evaluate the management plans required for estuaries under the National Estuarine Program.
Depreciation Patterns for Agricultural Machinery
Authors: Cross Timothy L. , Perry Gregory M. 
Published: July 2006

AbstractA flexible functional form model is used to estimate remaining‐value equations for eleven major types of farm machinery. Data used in estimation were obtained from ten years of machinery auctions. Remaining values were found to be influenced by machinery condition, use, manufacturer, and age. Macroeconomic variables were significant explanatory variables for most types of machinery. Estimated depreciation patterns varied by machinery type, demonstrating the need for updated machinery‐specific remaining‐value equations. Reduced‐form equations are presented for use in applied economic analysis.
A Dual Approach to Evaluating Research Benefits in the Presence of Trade Distortions
Authors: Martin Will J. , Alston Julian M. 
Published: July 2006

AbstractWe present a new approach for evaluating the welfare consequences of technical change. A major feature is its ability to incorporate multiple distortions and multiple sources of technical change in interrelated markets. A modified balance‐of‐trade function provides money measures of welfare change in terms of producer profits, consumer expenditures, and tax revenues. Alternative specifications of technical change are presented to capture the effects of differences in the form of technical change. In an illustrative numerical example, the approach is applied to a case involving two distortions and technical changes in two related markets. The example shows that the approach is reasonably easy to use and that accounting correctly for price distortions can have important implications for research benefit measures.
Predicting the Effects of Market Reform in Zimbabwe: A Stated Preference Approach
Authors: Rubey Lawrence , Lupi Frank 
Published: July 2006

AbstractA stated preference approach is used to predict likely responses to market reform in Zimbabwe. A random utility model is estimated using data on consumers' stated preferences for alternative types of maize meal. The model is used to predict demand patterns resulting from market reforms. Predicted demand is then compared with actual demand following market reforms. An analysis of the welfare effects of alternative policy scenarios shows that coupling the removal of consumer maize subsidies with improved access to a broader range of maize meal products ameliorated many of the adverse effects of subsidy removal, especially for lower‐income groups.
Product Aggregation Bias as a Specification Error in Demand Systems
Authors: Davis George C. 
Published: July 2006

AbstractInherent in all demand studies is some form of product aggregation which can lead to product aggregation bias. This article develops a simple procedure for incorporating product aggregation bias in demand systems that permits testing of product aggregation bias with a standard likelihood ratio test. An empirical illustration of the procedure demonstrates the importance of proper product aggregation.
Dynamic Adjustment in Vertically Linked Markets: The Case of the U.S. Beef Industry
Authors: Buhr Brian L. , Kim Hanho 
Published: July 2006

AbstractThis duality model is used to investigate the dynamic structure of vertically linked sectors of the U.S. beef industry. The model employed allows for explicit hypothesis tests of the adjustment process and technology change. Vertically related sectors of the beef industry are included to emulate the organizational structure of the industry. Results suggest that the cow‐calf, feedlot, and beef processing sectors of the U.S. industry face significant adjustment costs. Another important finding is that imports may provide a way for the U.S. beef industry to adjust to short‐run market changes.
Calibrating Benefit Function Transfer to Assess the Conservation Reserve Program
Authors: Feather Peter , Hellerstein Daniel 
Published: July 2006

AbstractBenefit transfer offers an inexpensive alternative to conducting an original study to determine economic value. Unfortunately, benefit transfers can also result in biased welfare estimates. In this paper, we suggest a method of calibrating the benefit transfer to reduce this bias. An empirical example to determine the benefits of the Conservation Reserve Program on water‐based recreation illustrates the potentially large biases that can result if the transfer is not calibrated.
Expo‐Power Utility: A ‘Flexible’ Form for Absolute and Relative Risk Aversion
Authors: Saha Atanu 
Published: July 2006

AbstractA new utility function, which I call expo‐power, is proposed that exhibits decreasing, constant, or increasing absolute risk aversion and decreasing or increasing relative risk aversion, depending on parameter values. Numerical analysis suggests that the expo‐power function performs well in incorporating these risk preference structures, and that arbitrary risk preference specifications may lead to biased risk response estimates.
The Economics of Reentry Regulation of Pesticides
Authors: Lichtenberg Erik , Spear Robert C. , Zilberman David 
Published: July 2006

AbstractGovernment agencies frequently try to protect the public from industrial hazards by separating the two in time and/or space. This paper develops a methodology for one such policy, reentry regulation of pesticides. Re‐entry regulation is shown to provide a rational incentive for preventive applications of pesticides, a practice usually attributed to risk aversion or inadequate information. The tradeoffs between farm worker poisonings and lost grower revenue are shown to be substantial. Weather‐dependent, location‐specific reentry regulation appears superior to the uniform regulation now in effect.
Rationalizing Agricultural Export Subsidies
Authors: Alston Julian M. , Carter Colin A. , Smith Vincent H. 
Published: July 2006

AbstractA conventional view is that export subsidies are inferior to output subsidies as a means of supporting farm prices. However, when there is an excess burden associated with general taxation measures, due to the distortions in markets arising from collection of taxes and any other costs associated with tax collections, export subsidies may be a component of the most efficient producer price support policy. The arguments in this paper provide a more persuasive rationale for pervasive agricultural export subsidies than does much of the recent literature.
Income Taxes and Price Variability in Storable Commodity Markets
Authors: McNew Kevin , Gardner Bruce 
Published: July 2006

AbstractProgressive income taxes lead to distortions in economic decisions made across tax years. This is particularly important when income is volatile, as in the case of agriculture. Progressive taxes, therefore, can fundamentally change economic behavior over time. This study explores how progressive income taxes influence storage decisions and the markets for storable commodities. Under a progressive tax system, commodity storage tends to be lower in the aggregate and, as a consequence, price volatility increases. These distortions could be eliminated by introducing a flat‐rate tax or by changing the tax reporting system for farmers.