bluuebunny/crossref_metadata_2025_split huggingface dataset:
Multicrop Production Decisions in Western Irrigated Agriculture: The Role of Water Price
Authors: Moore Michael R. , Gollehon Noel R. , Carey Marc B. 
Published: July 2006

AbstractApplying a model of the multioutput firm, econometric results are reported for irrigated production in four multistate regions of the American West. Cross‐sectional microdata from the Farm and Ranch Irrigation Survey and limited‐dependent variable methods are used to estimate crop‐choice, supply, land allocation, and water demand functions for field crops. Farm‐level water demand is decomposed into the sum of crop‐level water demands, and crop‐level demands are further separated into an extensive margin (land allocations) and intensive margin (short‐run water use). Response to water price (measured as groundwater pumping cost) occurs primarily at the extensive margin.
Human Capital, Producer Education Programs, and the Adoption of Forward‐Pricing Methods
Authors: Goodwin Barry K. , Schroeder Ted C. 
Published: July 2006

AbstractUsing a sample of 509 Kansas producers, we evaluate factors affecting adoption of forward pricing methods. We focus on producers' human capital accumulation and its effect on adoption of forward‐pricing techniques. Probit models are employed to evaluate producers' participation in educational programs and their forward‐pricing adoption decisions. Tobit models are employed to evaluate individual levels of adoption of these techniques in the marketing of wheat, corn, grain sorghum, soybeans, and cattle.
Nutrient Elasticities in a Complete Food Demand System
Authors: Huang Kuo S. 
Published: July 2006

AbstractThis study explores the linkage of the determinants of food choice with consumer nutrient availability by developing a procedure to measure changes in nutrient availability as the demand for food items change. It uses demand elasticities from traditional demand analysis to estimate elasticities of changes in the nutritional content of consumer diets. The procedure is applied to estimate nutrient elasticities for fifteen nutrients in response to changes in thirty‐five food prices and per capita income.
Count Data Models and the Problem of Zeros in Recreation Demand Analysis
Authors: Haab Timothy C. , McConnell Kenneth E. 
Published: July 2006

AbstractIn this paper we develop a count data model for consumer demand which explicitly allows for a large number of zero observations for the dependent variable, and separation of the participation versus quantity decisions. The advantages of the model over traditional censored and count demand models are brought out, and the appropriate consumer surplus measures are derived. By introducing a random error term into the traditional count model demand function, the appropriate measure of expected consumer surplus for count models is derived. The model is illustrated using a recreational survey of the general population.
Hedging with Commodity Options When Price Distributions are Skewed
Authors: Vercammen James 
Published: July 2006

AbstractLapan, Moschini, and Hanson have demonstrated that commodity options can be useful for hedgers who face a symmetric price distribution and who wish to maintain a net open market position. This is because options skew the distribution of profits to the right and such skewness typically increases expected utility. In this paper I use standard comparative statics to show that options are relatively more valuable for reducing the skewness of a nonsymmetric price distribution. Depending on the direction of the skewness and the underlying price expectations, hedgers may write options as well as purchase them.
Valuing Food Safety in Experimental Auction Markets
Authors: Hayes Dermot J. , Shogren Jason F. , Shin Seung Youll , Kliebenstein James B. 
Published: July 2006

AbstractIn this paper, we value food safety in a nonhypothetical setting—experimental auction markets. First, subjects underestimate the relatively low probabilities of food‐borne illness. Second, measures of value are within a relatively flat range across a wide range of risks, even with repeated market experience and full information on the objective probability and severity of illness, suggesting subjects rely on prior perceptions. Third, marginal willingness to pay decreases as risk increases, suggesting that the perceived quality of new information can affect the weight the individuals place on the information. Finally, pathogen‐specific values seem to act as surrogates for general food safety preferences.
Optimal Hedge Ratios with Risk‐Neutral Producers and Nonlinear Borrowing Costs
Authors: Brorsen B. Wade 
Published: July 2006

AbstractA new theory of hedging is derived assuming producers are risk neutral, forward pricing is costly, and borrowing costs are nonlinear. The standard risk‐minimizing hedge ratio is derived when forward pricing is costless. When the assumption of costless hedging is dropped, high‐leveraged firms are shown to hedge more than do low‐leveraged firms. If the value of capital is uncorrelated with output price, firms are shown to hedge more as cash price variability increases. Thus, the model can be consistent with what firms actually do.
Catholic High Schools and Rural Academic Achievement
Authors: Sander William 
Published: July 2006

AbstractIn this paper the effects of rural Catholic high schools on achievement in mathematics, high school graduation rates, and the likelihood that high school graduates go on to college are examined. Estimates that are corrected for selection bias indicate that rural Catholic high schools have a positive effect on mathematics test scores and no effect on graduation rates or on the odds of going on to college. Data from the High School and Beyond 1980 Sophomore Cohort Third Follow‐Up (1986) are used.
Damage Control Productivity: Why Econometrics Matters
Authors: Carpentier Alain , Weaver Robert D. 
Published: July 2006

AbstractFor nonexperimental data, asymmetric specifications of the role of damage control inputs impose restrictions of homotheticity or nonjointness on the underlying technology. A generalized symmetric form where damage control inputs affect factor diminution functions motivates use of symmetric specifications. Panel data and estimation methods are presented to produce robust estimates of damage control productivity that are free of heterogeneity bias. Estimates of the productivity of pesticides for French cereal farm production illustrate that fixed firm and time effects are important. Estimates indicate substantially smaller marginal productivity of pesticides than reported by past studies.
Working Wives and Food away from Home: The Box‐Cox Double Hurdle Model
Authors: Yen Steven T. 
Published: July 2006

AbstractHousehold expenditures on food away from home are analyzed with the use of the BLS' 1989 Consumer Expenditure Survey. Parameterization and distributional assumptions of Cragg's double‐hurdle model are generalized for this purpose, and the resulting model outperforms the more traditional ones. Results suggest households with working wives and those with higher income are more likely to consume food away from home and also to consume more than others. Wife's age and household size increase the conditional level of consumption. Education has conflicting effects on probability and conditional level of consumption.
The Choice of a Welfare Measure under Uncertainty
Authors: Ready Richard C. 
Published: July 2006

AbstractUse of option price as a welfare measure when conducting a benefit‐cost analysis under uncertainty is appropriate only if the project under consideration will have no impact on the allocation of risk among individuals. Use of the willingness‐to‐pay locus as a benefit measure is appropriate only if the project will result in an efficient allocation of risk. A more general welfare measure is proposed, maximum agreeable payment, that correctly measures the benefits and costs of any project.
Multimarket Exploitation: The Case of Biotechnology and Chemicals
Authors: Just Richard E. , Hueth Darrell L. 
Published: July 2006

AbstractBiotechnology enables rapid development of products with specific characteristics. We show that those who control the direction of biotechnology development influence the resulting industry structure. Through multimarket exploitation, chemical companies develop biotechnology that increases dependence on chemicals, whereas nonchemical companies tend toward development of biotechnology that substitutes for chemicals. Chemical companies tend to both underinvest and underproduce. Conversely, firms without vested chemical interests tend to overinvest and overproduce—even with monopoly‐enabling patents. Results show how the consequent industry structure can be affected by choice of agricultural policy.
Point/Nonpoint Source Trading of Pollution Abatement: Choosing the Right Trading Ratio
Authors: Malik Arun S. , Letson David , Crutchfield Stephen R. 
Published: July 2006

AbstractIn programs for trading pollution abatement between point and nonpoint sources, the trading ratio specifies the rate at which nonpoint source abatement can be substituted for point source abatement. The appropriate value of this ratio is unclear because of qualitative differences between the two classes of sources. To identify the optimal trading ratio, we develop and analyze a model of point/nonpoint trading. We find the optimal trading ratio depends on the relative costs of enforcing point versus nonpoint reductions and on the uncertainty associated with nonpoint loadings. The uncertainty does not imply a lower bound for the optimal trading ratio.
Producer Price Risk and Quality Measurement
Authors: Hueth Brent , Ligon Ethan 
Published: July 2006

AbstractRisk‐averse farmers in the produce industry grow a product whose market price is often quite unpredictable. Shippers or other intermediaries shield the farmer from much of this price risk; however, actual contracts between growers and shippers vary considerably across commodities in the residual price risk growers face. We hypothesize that imperfect quality measurement results in a moral hazard problem, and that price provides additional information regarding quality. As a consequence, an efficient contract does not shield growers from all idiosyncratic price risk. We examine this hypothesis for the case of fresh‐market tomatoes.
The Pricing of Revenue Assurance
Authors: Stokes Jeffrey R. , Nayda William I. , English Burton C. 
Published: July 2006

AbstractA theoretical model to value gross revenue assurance under one of the popular proposals facing U.S. policy makers is developed. The approach makes use of a fundamental paradigm of asset valuation and stochastic calculus. Because farm‐level gross revenue is not a traded asset, equilibrium arguments must be made to specify the partial differential equation characterizing the value of the assurance. An example solution is presented under the assumption of lognormally distributed gross revenue. County‐level data for a variety of crops are used to examine empirically the pricing ability of the model.
Toward a Positive Economic Theory of Hedging
Authors: Collins Robert A. 
Published: July 2006

AbstractThe hedging models developed over the last half century are evaluated for their ability to explain the actual hedging behavior of the various economic agents. This evaluation shows a total lack of a reasonable positive model of hedging behavior. While each class of existing models predicts some observed behavior, none is able to predict the broad range of actions that is easily observed in the real world. In this paper I develop such a model and include a plausible and coldly rational economic explanation for why farmers don't hedge at all while merchandisers with identical risk attitudes will fully hedge.
Optimal Capacity in the Anhydrous Ammonia Industry
Authors: Stiegert Kyle W. , Hertel Thomas W. 
Published: July 2006

AbstractThis study analyzed the status of manufacturing capacity in the U.S. anhydrous ammonia industry (1971–91). Pindyck's (1988) real option model was extended to account for mean‐reverting tendencies in the marketing margin to determine optimal capacity for each year. The key result of the study is that the 30% expansion in 1973–74 would not have been recommended by the real option model, while traditional discounted cash flow approaches available in the 1970s could have easily rationalized the choices made by the industry. The results underscore the potential gains in predictive power from using the real option model in analyzing large, irreversible investments.
Optimal Sequential Grain Marketing Decisions under Risk Aversion and Price Uncertainty
Authors: Blakeslee Leroy 
Published: July 2006

AbstractA method is developed to find sequences of expected utility maximizing decisions under risk aversion when random elements are time‐dependent and additive separable utility of income is implausible. A Taylor‐series approximation to expected utility is used. In an application to marketing stored wheat, expected seasonal sales patterns, early fractional sales of total inventory for risk reduction, and negative skewness in resulting income distributions are noted. Sensitivity to the number of income distribution moments used to approximate expected utility is examined. Six moments produce a good approximation. Use of only mean and variance can give doubtful results.
What Causes Commodity Price Backwardation?
Authors: Frechette Darren L. , Fackler Paul L. 
Published: July 2006

AbstractA recently proposed explanation for futures price backwardation is examined. An equilibrium model with spatial heterogeneity leads to the interpretation of backwardations as mismeasurement by the analyst. However, the model predicts that backwardations are more affected by the location of stocks than by their aggregate level. Empirical examination of the United States corn market fails to support this result.
Economic Feasibility of Variable‐Rate Technology for Nitrogen on Corn
Authors: Thrikawala Sunil , Weersink Alfons , Fox Glenn , Kachanoski Gary 
Published: July 2006

AbstractThe economic feasibility of three different fertilizer management strategies (constant rate, three‐rate and multiple‐rate technology) in the application of nitrogen fertilizer to corn are compared under different probability distributions for field fertility. A constant rate was more profitable than either variable‐rate technology system for homogeneous fields with low fertility. The application area at which the relative profitability between systems changed was largely determined by the characteristics of the fertility distribution rather than by assumptions regarding costs. Variable‐rate technology improves groundwater quality in low‐fertility fields by reducing total fertilizer applied and in high‐fertility fields by increasing corn yield.
Does Lack of Access to Formal Credit Constrain Agricultural Production? Evidence from the Land Tenancy Market in Rural India
Authors: Kochar Anjini 
Published: July 2006

AbstractWhile it is commonly believed that lack of access to government‐subsidized “formal” credit underlies observed differences in farm productivity in rural India, there is little empirical evidence on this issue. In this paper I address this issue by examining whether households use the farm land rental market to equilibrate their access to formal credit, as they are known to do in the case of other imperfectly marketable inputs. This research reveals, however, that the advantage formal borrowers enjoy in the tenancy market does not reflect their access to formal credit per se, but their greater ownership of inputs such as irrigated land.
Discount Schedules and Grower Incentives in Grain Marketing
Authors: Hennessy David A. , Wahl Thomas I. 
Published: July 2006

AbstractIn this paper we develop a microeconomic optimization model of grain elevator cleaning and commingling decisions when the firm is faced with different discounting schedules. Using generalizations of Jensen's inequality, it is shown that a convex (concave) discount schedule encourages commingling (cleaning). However, a separate market for cleanings may qualitatively alter the optimal arrangement of grain. Wheat elevator records are studied to discern whether alternative discount schedules provide elevators with opportunities to cover the costs of rearranging grain composition. Rearrangement activities appear to be marginally profitable for some dockage levels.
Government Preferences and Public Forest Harvesting: A Second‐Best Approach
Authors: Amacher Gregory S. 
Published: July 2006

AbstractAround the world governments own forest capital stocks and can harvest them for revenue or provide public goods from preserving them. This article examines how government preferences for revenue generation and public goods provision affect policy choices. Many instances are found where governments might exploit public forests at the expense of public goods. This is most likely when budget pressures are severe, or when the government prefers revenue generation to nontimber benefits provision. In particular, budget‐constrained governments are more likely to exploit public harvests to raise revenues and subsidize the forest sector, especially when revenues are increasing in public harvesting. Public harvesting should also influence tax choice. The results shed light on current forest policy debates and can be used to predict behavior of developed and developing country governments facing external pressures.
Integrator Contracts with Many Agents and Bankruptcy
Authors: Tsoulouhas Theofanis , Vukina Tomislav 
Published: July 2006

AbstractThis article analyzes optimal livestock production contracts between an integrator company and many independent growers in three similar industries: broiler, turkey, and swine. The analysis provides an explanation for the simultaneous existence of distinct incentive schemes in these industries by examining the effects of bankruptcy. The key factors are shown to be the output price volatility and the firm size. With large companies dominating the broiler industry, a small price volatility facilitates the use of two‐part piece rate tournaments. By contrast, given the prevalence of smaller companies in the swine industry, a larger price volatility generates a bankruptcy risk which renders the use of tournaments infeasible. Given the combination of medium‐size companies in the turkey industry, an intermediate price volatility produces a mixed result where tournaments and fixed performance standards exist simultaneously.
CVM‐X: Calibrating Contingent Values with Experimental Auction Markets
Authors: Fox John A. , Shogren Jason F. , Hayes Dermot J. , Kliebenstein James B. 
Published: July 2006

AbstractWe design and implement a method, CVM‐X, to calibrate hypothetical survey values using experimental auction markets. We test the procedure using consumer willingness‐to‐pay for irradiated/nonirradiated meat. Our results show that calibration factors for those who favor the irradiation process (0.67–0.69) are less severe than for those with an initial dislike of the process (0.55–0.59), suggesting that calibration may be commodity specific.
Bayesian Composite Qualitative Forecasting: Hog Prices Again
Authors: Dorfman Jeffrey H. 
Published: July 2006

AbstractA new method for forming composite qualitative forecasts is presented. A set of qualitative forecasts is evaluated using auxiliary logit models to predict the probability of each forecast's correctness. Individual model forecasts are then combined on the basis of normalized values of these probabilities. This method is demonstrated with three sets of forecasts on the direction of change in hog prices (up or down). The application shows that without any information on the manner in which the individual forecasts are generated this method can form a composite forecast that is superior according to a variety of metrics for evaluating qualitative forecasts.
Marketing Agreement Impacts in an Experimental Market for Fed Cattle
Authors: Ward Clement E. , Peel Derrell S. , Trapp James N. , Dowty Tracy L. , Koontz Stephen R. 
Published: July 2006

AbstractMarketing agreements between meatpacking and cattle feeding firms have created concerns about their effects on fed cattle prices. Profit‐sharing marketing agreements were imposed onto a simulated fed cattle market. Price level and variability differences with and without agreements, between agreement participants and nonparticipants, during agreement and nonagreement periods, and between participants receiving and not receiving a monetary incentive were evaluated. Prices and variability for nonagreement cattle were higher during the agreement periods. Marketing agreement participants realized lower, less variable prices than nonparticipating firms. Monetary incentives did not affect price levels but increased price variability.
Testing Theories of Consumption Behavior Using Information on Aggregate Shocks: Income Seasonality and Rainfall in Rural India
Authors: Jacoby Hanan G. , Skoufias Emmanuel 
Published: July 2006

AbstractWe develop an integrated framework for testing theories of consumption behavior by examining how agricultural households in rural India respond to anticipated and unanticipated seasonal income fluctuations. Using information on village‐level rainfall surprises, we estimate idiosyncratic unanticipated income shocks by allowing weather risk to impact households differently depending on observable characteristics. In applying our methodology to unique panel data on consumption, debt, and intrahousehold gift exchanges, we address a number of shortcomings in previous tests of theories of consumption behavior. Yet, we find no evidence against the hypothesis that households smooth idiosyncratic fluctuations in their income. Our approach also uncovers several interesting features of rural credit and insurance markets.
Individual and Household Willingness to Pay for Public Goods
Authors: Quiggin John 
Published: July 2006

AbstractThe issue of whether willingness to pay (WTP) for the benefits generated by a public good should be elicited on an individual or on a household basis is addressed. Differences between individual and household WTP may arise when members of the household are mutually altruistic. It is shown that, for general specifications of altruism, household WTP is less than the sum of household members' individual WTP. Implications for the choice between household and individual measures of WTP are considered, and issues in the elicitation of household WTP are addressed.
Needed Redirections in Economic Analysis for Agricultural Development Policy
Authors: Dorner Peter 
Published: July 2006

AbstractEconomic literature identifies development with average rates of increase in real output per capita. Little research has focused on interrelations between productivity increases and other indicators of development such as the reduction of mass poverty, unemployment, and inequality. Such omissions may be a function of the way agricultural economics developed in the United States. Here a positive correlation between increased production, employment, and income‐earning opportunities was assumed inherent in the family farm system and the relative labor‐scarce conditions. Problems emerging in recent years throw considerable doubt on the appropriateness of these assumptions.
Formulating Beef Rations for Improved Performance under Environmental Stress
Authors: Brokken Ray F. 
Published: July 2006

AbstractBeef ration heat increment level (energy lost in ruminant fermentation and nutrient metabolism) relative to net energy has important implications for efficient beef production under heat or chill stress. This paper presents (1) an efficient model for use of the Lofgreen‐Garrett net energy system in ration formulation; (2 ) a model, incorporating the Lofgreen‐Garrett net energy system, for varying heat increment relative to net energy in beef ration formulation; and ( 3) a simplified framework for ascertaining potential animal performance differences caused by differences in relative heat increment under assumed stress conditions. Differences illustrated are substantial.