bluuebunny/crossref_metadata_2025_split huggingface dataset:
Integration of Spatial Markets
Authors: Faminow Merle D. , Benson Bruce L. 
Published: July 2006

AbstractStudies of spatial market integration draw their implications from a theory which assumes that there are no intraregional transport costs. An alternative theory is offered, based on the assumptions that buyers and sellers are spatially dispersed and intraregional transport costs are significant. This implies that the market is a linked oligopoly (or oligopsony) and that market integration tests are tests of alternative oligopoly price formation processes. For example, collusive basing‐point pricing produces results typically assumed to imply efficiently integrated markets, while competitive FOB pricing does not. The theoretical implications are illustrated with an analysis of hog prices in Canada.
Rural Road Abandonment: Policy Criteria and Empirical Analysis
Authors: Hamlett Cathy A. , Baumel C. Phillip 
Published: July 2006

AbstractDeterioration and changing use patterns of the rural road system have coalesced into difficult policy decisions for local government officials. One option for consideration is abandonment of some low‐volume roads. A model is developed, using utility maximization and Pareto‐optimal criteria, that allows identification of policy criteria for abandonment. The criteria are empirically estimated and 4% to 12% of the roads were found to be good candidates for abandonment without a net social loss.
Input Allocation in Multicrop Systems
Authors: Just Richard E. , Zilberman David , Hochman Eithan , Bar‐Shira Ziv 
Published: July 2006

AbstractUsing data only on aggregate variable input use and land allocation, this paper suggests a methodology for allocating variable input use among crops and improvement of regional crop budget information. Two approaches for estimation of variable input allocations among production activities are examined. One relies on behavioral rules whereby input allocations follow accepted rules of thumb. The alternative approach is derived from profit maximization where input use responds instantaneously to changes in input and output prices. The behavioral rules dominate instantaneous response to prices in explaining the data analyzed in this paper and suggest the validity of a simple behavioral approach for developing enterprise budgets and cost of production estimates.
Two Practical Procedures for Estimating Multivariate Nonnormal Probability Density Functions
Authors: Taylor C. Robert 
Published: July 2006

AbstractThis article presents two procedures for empirically estimating nonnormal joint probability density functions (pdf's) that are operational with small samples. One procedure empirically estimates marginal distributions. Estimated marginal distributions are then used to transform variates to univariate normality; the transformed variates are assumed to have a multivariate normal distribution. The second approach exploits the identity that a joint distribution is the product of a conditional pdf and a marginal pdf. Conditional and marginal pdfs are individually estimated with this approach. Statistical tests for multivariate normality are also reviewed.
On‐Site Time in the Demand for Recreation
Authors: McConnell K. E. 
Published: July 2006

AbstractThe standard travel cost model has treated on‐site time ambiguously over the years. This paper shows how to handle on‐site time by exploring the implications of two assumptions in the travel cost model: first, people choose the amount of time that they spend on a site, and second, the time spent on‐site is exogenous. This paper uses a duality result to show that when on‐site time is chosen, the standard travel cost demand function takes a particularly simple form. With slight modification, standard estimation and welfare calculations continue to hold.
“Don't Count Your Chickens...”: Risk and Risk Shifting in the Broiler Industry
Authors: Knoeber Charles R. , Thurman Walter N. 
Published: July 2006

AbstractThe contracts used to reward growers of broiler chickens in the United States base pay on a grower's performance relative to other growers. From a panel of data covering seventy‐five growers over four years, we use simulation methods to measure the price and production risk shifted from growers to integrator companies by these contracts. We also decompose the risk in broiler production variability. We conclude that the bulk of the risk in our sample, which is primarily price risk, is shifted from growers through the use of production contracts.
Measurement of Economic Efficiency in Pakistani Agriculture
Authors: Parikh Ashok , Ali Farman , Shah Mir Kalan 
Published: July 2006

AbstractThe behavioral and stochastic cost frontier functions are applied to estimate cost inefficiency by farms. The behavioral approach satisfies most of the assumptions of dual cost function and the likelihood ratio test rejects the market efficiency hypothesis implying less than optimum use of manures, labor, and fertilizers. A suboptimal use is explained by holding size, education, credit, and subsistence needs. Small farms seem to be more efficient than large farms in the region. A measure of inefficiency based on a stochastic cost frontier approach confirms the results of the behavioral approach.
The Dynamic Responses of Crop and Livestock Prices to Money‐Supply Shocks: A Bayesian Analysis Using Long‐Run Identifying Restrictions
Authors: Dorfman Jeffrey H. , Lastrapes William D. 
Published: July 2006

AbstractThe impact of monetary policy on agriculture has been much debated. This study examines the dynamic responses of U.S. agricultural prices to money‐supply shocks using three innovations. First, the variables' responses are identified by long‐run money neutrality restrictions instead of the more common contemporaneous ordering. Second, a Bayesian approach to model uncertainty is used to add robustness to the estimation process. Third, agricultural prices are disaggregated into crop and livestock components. The empirical results find that both agricultural sectors benefit in the short run from positive money‐supply shocks with agricultural prices increasing relative to the general price level.
Generalization of Nonparametric Tests for Homothetic Production
Authors: Silva Elvira , Stefanou Spiro E. 
Published: July 2006

AbstractThe nonparametric tests for homotheticity proposed by Hanoch and Rothschild and by Varian (1984) are a special case of the tests proposed in this paper. The previous tests are generalized by relaxing the linear homogeneity assumption. A range for the degree of homogeneity as well as a region for the input demands are constructed using a dual approach.
Testing the Monopsony‐Inefficiency Incentive for Backward Integration
Authors: Azzam Azzeddine 
Published: July 2006

AbstractIn theory, monopsony at one stage in a vertically related market provides an incentive for backward integration into the adjacent competitive stages. By integrating backward, a monopsonist internalizes the monopsony inefficiency due to underemployment of the factor produced upstream. However, little is known about the importance of such incentive in practice. In this paper I provide an empirically implementable model to test the monopsony‐inefficiency incentive for vertical integration. For illustration, the model is applied to the U.S. beef slaughter industry. Findings seem to support the monopsony‐inefficiency incentive for backward integration by the industry into the live cattle market.
A Probit Latent Variable Model of Nutrition Information and Dietary Fiber Intake
Authors: Variyam Jayachandran N. , Blaylock James , Smallwood David 
Published: July 2006

AbstractNutrition information and intake data for a sample of U.S. household meal planners are used to estimate the effects of fiber‐specific information on dietary fiber intake. The information variables are measured using survey questions on fiber content of foods, attitude toward consuming fiber‐rich foods, and awareness of fiber‐health links. The evidence confirms the influence of nutrition information on fiber intake. Household income, meal planner age, smoking status, vegetarian status, race, and ethnicity are major determinants of both information and intake. Education exerts a sizable intake effect by enhancing the information level. Direct and indirect effects of exogenous variables are reported.
Impact of the U.S. Export Enhancement Program on Exports of Canadian Durum to the U.S.
Authors: Lavoie Nathalie 
Published: July 2006

AbstractThe Export Enhancement Program (EEP) of the United States creates a price wedge between those countries that receive this subsidy and those that do not. At the same time, the EEP has made the U.S. market profitable for Canadian exports. The objective of this study is to assess the impact of the EEP on Canadian exports of durum wheat to the U.S. For this purpose, a conceptual framework is developed and tested with a quarterly econometric model. The empirical results support the conceptual characterization and suggest that the EEP for durum has stimulated about half of Canadian durum exports to the United States.
Endowments, Technology, and Factor Markets: A Natural Experiment of Induced Institutional Innovation from China's Rural Reform
Authors: Lin Justin Yifu 
Published: July 2006

AbstractThe induced institutional innovation hypothesis postulates that new institutions are innovated to exploit profitable opportunities arising from institutional disequilibrium. The removal of legal restrictions on factor market exchanges after recent reforms in China resulted in institutional disequilibrium. This paper utilizes data from a household survey in China to explore (i) the relationship between the emergence of land, labor, and rental markets in a region and the distribution of factor endowments across rural households in that region, and (ii) the impact of hybrid rice on the emergence of factor markets in that region. The results are consistent with the induced institutional innovation hypothesis.
The Economic Value of Minimum‐Variance Hedges
Authors: Lence Sergio H. 
Published: July 2006

AbstractThe present article examines the potential economic gains from “better” minimum‐variance hedge (MVH) estimates, focusing on the assumptions that yield MVHs consistent with expected‐utility maximization. It is found that the economic value of “better” MVH estimates is negligible, and that optimal hedges are substantially different from MVHs when the usual MVH restrictions are relaxed. Among other things, findings suggest that the hedging research's recent emphasis on “better” MVHs has been a waste of resources. Investigating the consequences of relaxing the standard MVH assumptions seems to be much more important than recent literature contributions.
Multiattribute Assessment of Alternative Cropping Systems
Authors: Foltz John C. , Lee John G. , Martin Marshall A. , Preckel Paul V. 
Published: July 2006

AbstractMultiattribute rankings of seventy‐two alternative midwestern cropping systems involving corn, soybeans, and alfalfa hay are analyzed from profitability and environmental quality perspectives. Environmental consequences are simulated using EPIC and GLEAMS, and profitability is based on budget analysis. Results are analyzed using an algorithm based on multiattribute decision theory. A corn‐soybean rotation using low input levels and minimum tillage on high‐productivity soil, and continuous corn using low input levels and minimum tillage on low‐productivity soil are in the preferred set regardless of whether profits or preserving the environment is the first priority for the decision maker.
Production Economics of Private Forestry: A Comparison of Industrial and Nonindustrial Forest Owners
Authors: Newman David H. , Wear David N. 
Published: July 2006

AbstractThis paper compares the production behavior of industrial and nonindustrial private forestland owners in the southeastern U.S. using a restricted profit function. Profits are modeled as a function of two outputs, sawtimber and pulpwood, one variable input, regeneration effort, and two quasi‐fixed inputs, land and growing stock. Although an identical profit function is rejected, the results indicate behavior consistent with profit‐maximizing motives under both ownerships. The two ownerships have similar responses to input and output price changes, both in the short‐run and in the long‐run. However, nonindustrial owners appear to place a higher value on their standing timber and forestland than do industrial owners. The difference in estimated shadow values indicates that significant nonmarket benefits are being captured by nonindustrial owners and the benefits are reflected in their production behavior.
Using Shadow Wages to Estimate Labor Supply of Agricultural Households
Authors: Skoufias Emmanuel 
Published: July 2006

AbstractWith few exceptions, most studies of the labor demand and supply decisions of agricultural households in developing countries have relied on the empirical advantages of separability. Given the questionable nature of some of the assumptions sufficient for separability, I apply a recent methodology that accounts for the simultaneity between the production and consumption decisions of a farm household. Using data from rural India, direct estimates of the marginal productivities (shadow wages) of family male and female labor are derived from a Cobb‐Douglas agricultural production function. The estimated shadow wages and income are then used as regressors in a structural model of labor supply.
Futures Hedging Under Price, Basis, and Production Risk
Authors: Lapan Harvey , Moschini Giancarlo 
Published: July 2006

AbstractWe consider the hedging problem of a firm that has three sources of risk: price, basis, and yield uncertainty. An exact solution for the optimal futures hedge is derived under the assumption that the three random variables are jointly normally distributed and that utility is of the CARA type. Unlike the mean‐variance approximation applied in previous research, we show that the optimal hedge does depend on risk attitudes, even when the agent perceives the futures price as being unbiased. The theoretical results are applied empirically to the problem of hedging soybean production in Iowa. The exact solution, relying on CARA and normality, is compared with numerical solutions under lognormal distributions and CRRA utility.
A Household Model of On‐Farm Storage Under Price Risk
Authors: Saha Atanu , Stroud Janice 
Published: July 2006

AbstractWe present an agricultural household model of consumption, storage, savings, and labor decisions and argue that food crop storage under price risk cannot be fully explained by “risk taking” or speculative behavior alone, as the commodity storage literature suggests. Often, and especially in the case of small farmers, the explanation lies in the household's aversion to risk and in food security considerations. The empirical analysis, using ICRISAT quarterly panel data from Shirapur, provides evidence against risk‐neutral preferences. We find that risk response is particularly significant in the storage and labor decisions of small farm households.
The Demand for Multiple Peril Crop Insurance: Evidence from Montana Wheat Farms
Authors: Smith Vincent H. , Baquet Alan E. 
Published: July 2006

AbstractAn econometric analysis of the demand for multiple peril crop insurance is carried out for a sample of 370 Montana wheat farms. The study is the first to model the farm's participation and coverage‐level decisions separately through Heckman two‐stage estimation procedures. These decisions are shown to be determined in different ways. In addition, farms with positive expected returns from insurance make coverage‐level decisions in different ways from farms with negative expected returns. These differences indicate that adverse selection effects limit the efficacy of across‐the‐board premium rate increases as mechanisms for reducing loss ratios.
The Tradeoff between Oligopsony Power and Cost Efficiency in Horizontal Consolidation: An Example from Beef Packing
Authors: Azzam Azzeddine M. , Schroeter John R. 
Published: July 2006

AbstractIn this paper we model the tradeoff between regional oligopsony power and cost efficiency resulting from consolidation in a food processing industry. The model can be used to calculate the cost reductions necessary to offset the anticompetitive effects of market power and to compare them to actual cost savings achieved through plant scale or multiplant operating economies. For an application, we choose the beef packing industry. For this case, we find that the estimated cost savings necessary to neutralize the anticompetitive effects of consolidation in beef packing are about half the actual cost savings from scale economies.
Measuring Goodness of Fit for the Double‐Bounded Logit Model
Authors: Kanninen Barbara J. , Khawaja M. Sami 
Published: July 2006

AbstractThe traditional approaches of measuring goodness of fit are shown to be inappropriate in the case of the double‐bounded logit model. An alternate approach called the “sequential classification procedure” is presented as a possible alternative to the standard tests. The double‐bounded logit model is reviewed along with the standard goodness‐of‐fit measures. The sequential classification procedure and its features are presented in the context of an empirical example.
An Econometric Decomposition of Dairy Output Growth
Authors: Ahmad Munir , Bravo‐Ureta Boris E. 
Published: July 2006

AbstractFixed effects production functions and stochastic production frontiers are estimated and used to decompose dairy farm output growth into technological progress, technical efficiency, and increased input use or the size effect. Unbalanced panel data for ninety‐six Vermont dairy farmers for the 1971–84 period are utilized. The results show a 2.5% average annual increase in milk output. About 56% of this growth is attributed to the size effect and the remaining 44% to productivity growth. Technological progress contributed about 94% to total productivity growth, while improvements in technical efficiency accounted for only 6%.
Microeconomics of Agricultural Grading: Impacts on the Marketing Channel
Authors: Hennessy David A. 
Published: July 2006

AbstractIn this paper I focus on how grade prices affect the provision of product transformation skills in the food marketing system. A self‐protection model is used to show how resources are allocated to protect the potential value of commodities in the marketing channel. Resource allocations may be complementary, and complementarity may be exploited to expand an industry. Further, uncertainty concerning skill levels may inhibit expansion. Because two primary objectives of agricultural extension involve facilitating skill acquisition and disseminating market information, the model confirms roles for extension personnel. The optimal location of transformation skills in a sequence of operations is also studied.
Efficiency of the Multiplant, Multiproduct Firm
Authors: Sil Jayashree , Buccola Steven 
Published: July 2006

AbstractA general framework is provided for assessing the technology, cost, and efficient scale of a multiplant, multiproduct firm. We show sufficient conditions for the existence of a plant cost function, and necessary and sufficient conditions for using plant‐level data to draw exact firm‐level cost inferences. We also distinguish between plant and input nonjointness and show the optimal relation between plant‐level and firm‐level cost elasticity in a multiproduct setting. The framework is applied to a vegetable processing cooperative, which is found to operate below its efficient scale.
FLC Usage Among California Growers under IRCA: An Empirical Analysis of Farm Labor Market Risk Management
Authors: Thilmany Dawn D. 
Published: July 2006

AbstractRecent immigration reform efforts have been ineffective at controlling the flow of illegal immigration. Concurrently, a structural change occured in the agricultural sector as farm labor contractor (FLC) usage expanded. The FLC sector is, arguably, evolving due to the tighter regulatory and risk environment faced by producers. Using probit analysis of survey data from California growers, this study analyzes labor contracting patterns. Differences are found among regions, commodities, and several grower characteristics. However, the significant role of risk perceptions and management attitudes are of greatest interest given the absence of labor issues in agricultural risk management programs.
On Nonparametric Supply Response Analysis
Authors: Chavas Jean‐Paul , Cox Thomas L. 
Published: July 2006

AbstractIn this paper, we explore the usefulness of nonparametric methods in the investigation of production behavior and the estimation of price elasticities of output supply and input demand functions. The approach can handle the situation where some data points are not consistent with production theory. The method is illustrated by estimating supply‐demand elasticities of outputs and inputs in U.S. agriculture.
Effects of Health Information and Generic Advertising on U.S. Meat Demand
Authors: Kinnucan Henry W. , Xiao Hui , Hsia Chung‐Jen , Jackson John D. 
Published: July 2006

AbstractThe dominant pattern in U.S. meat consumption over the past two decades has been a steady increase in per capita poultry consumption, largely at the expense of beef consumption. Our findings suggest that the major factor governing this pattern is structural change. Specifically, health information or trend was found to be significant in each of the four equations estimated in the Rotterdam system. Moreover, the health‐information elasticities in general are larger in absolute value than price elasticities, which suggests that small percentage changes in health information have larger impacts on meat consumption than equivalently small percentage changes in relative prices. The estimated effects of generic advertising, in contrast, were found to be modest and fragile.
The Economics of Cosmetic Pesticide Use
Authors: Lichtenberg Erik 
Published: July 2006

AbstractIt has been argued that so‐called “cosmetic” standards for produce quality increase pesticide use on fruits and vegetables. This paper shows that stricter quality standards unambiguously increase farm‐level pesticide demand only when produce is sold in mixed lots with tolerances for characteristics determined by quality standards and there is no sampling error. Under more commonly encountered conditions, stricter quality standards may reduce pesticide demand. An empirical example of apple production suggests that grading standards have non‐negligible effects and that more stringent grading standards lead to reduced pesticide use under plausible conditions.
Estimation and Use of a Multivariate Parametric Model for Simulating Heteroskedastic, Correlated, Nonnormal Random Variables: The Case of Corn Belt Corn, Soybean, and Wheat Yields
Authors: Ramírez Octavio A. 
Published: July 2006

AbstractThis study develops a multivariate, nonnormal density function that can accurately and separately account for skewness, kurtosis, heteroskedasticity, and the correlation among the random variables of interest. The statistical attributes of the underlying random variables and correlation processes are examined. The potential applications of this modeling tool are discussed and exemplified by analyzing and simulating Corn Belt corn, soybean, and wheat yields. While corn and soybean yields are found to be skewed and kurtotic and exhibit different variances through time, wheat yields appear normal but also heteroskedastic. A strong correlation is detected between corn and soybean yields.