bluuebunny/crossref_metadata_2025_split huggingface dataset:
Local Economic Conditions and Wage Labor Decisions of Farm and Rural Nonfarm Couples
Authors: Tokle J. G. , Huffman Wallace E. 
Published: July 2006

AbstractEffects of geographical differences in local economic conditions on wage labor demand and wage labor participation decisions of rural couples are examined for Current Population Survey households 1978–82. Wage premiums are shown to exist for localities anticipating labor demand growth, higher unemployment rates, larger share of employment in services, and higher costs of living. These effects are stronger for males than females. Effects of local economic conditions on the probability of wage work are consistent with expected market wage and reservation wage effects, and for farm households the probability of wage work increases when expected farm output prices decline or the wage increases.
The Impact of Wage Differentials on Choosing to Work in Agriculture
Authors: Perloff Jeffrey M. 
Published: July 2006

AbstractBased on a model of industry choice and wage determination, a 1% increase in the relative wage in agriculture increases the probability that a nonurban male with no more than a ninth‐grade education works in agriculture by 3.37% at the sample mean and by 1.3% when averaged over the entire sample. A 10% increase in wages may increase the proportion of those males who choose to work in agriculture by nearly a quarter.
The Costs of Indonesian Sugar Policy: A Policy Analysis Matrix Approach
Authors: Nelson Gerald C. , Panggabean Martin 
Published: July 2006

AbstractIndonesian sugar policy is a complex web of contradictory policies, including mandatory production, price supports, and fertilizer and credit subsidies. The policy analysis matrix (PAM) was developed by Monke and Pearson to provide a more complete perspective on social profitability and the divergence between private and social costs than other commonly used social cost‐benefit measures. The PAM is used to analyze the effects of Indonesian sugar policy on sugar production in irrigated and dryland areas on Java, the main sugar‐producing region in Indonesia, and to identify the distribution of resource transfers.
State‐Space Modeling of Cyclical Supply, Seasonal Demand, and Agricultural Inventories
Authors: Dorfman Jeffrey H. , Havenner Arthur 
Published: July 2006

AbstractThe production of certain agricultural products follows an alternate bearing pattern of large and small crops. Many agricultural products also experience seasonal shifts in demand. Such patterns present a natural opportunity for profitable inventories. This paper applies state‐space modeling techniques to the problem of modeling cyclical patterns in supply and demand and presents an application to the determination of inventory levels for such agricultural products using linear quadratic control.
Dynamically Optimal After‐Tax Grain Storage, Cash Grain Sale, and Hedging Strategies
Authors: Tronstad Russell , Taylor C. Robert 
Published: July 2006

AbstractThis article utilizes a stochastic dynamic programming (SDP) model that considers the state variables of (a) before‐tax income, (b) grain storage, (c) quantity of futures position, (d) value of futures position, (e) wheat price, and (f) basis level. Decision variables are monthly cash grain sales and futures market transactions. In comparing the post‐sample performance of SDP to other marketing strategies over a four‐year period, SDP resulted in $@@‐@@5,961 to $@@‐@@25,021 more wealth than the other strategies considered. Also, these other strategies yielded a standard deviation of after‐tax income that was 30% to 621% greater than that from the SDP framework.
Price Changes, Supply Elasticities, Industry Organization, and Dairy Output Distribution
Authors: Adelaja Adesoji O. 
Published: July 2006

AbstractLong‐run price elasticities of milk supply are decomposed into price elasticities of yield, herd size, and farm population. For northeastern U.S. dairy farms, these elasticities are shown to vary with farm size because of size‐related differences in capital intensity, specialization, yield and herd size variability, and rates of entry/exit into dairy. In the short run, price responsiveness is shown to decrease with farm size. In the long run, large farms are shown to be most price responsive. Results suggest that lower milk prices could make revenue distribution less equal in both the short and long run by altering output and population distributions.
Does Arbitraging Matter? Spatial Trade Models and Discriminatory Trade Policies
Authors: Anania Giovanni , McCalla Alex F. 
Published: July 2006

AbstractWhen modeling discriminatory trade policies, such as targeted embargoes or targeted subsidies, failure to explicitly include assumptions about the possibility of simultaneous exporting and importing may yield misleading results. Nonlinear programming and “vector sandwich” models implicitly set rules regarding arbitraging which may be at variance with actual policies and/or country behavior. The paper introduces an alternative spatial model which allows the researcher to explicitly incorporate her own assumptions about arbitraging. An analysis of the 1980 U.S. embargo to the USSR shows how the proposed model performs relative to the most frequently used spatial trade models.
Demand for Food Fats and Oils: The Role of Demographic Variables and Government Donations
Authors: Gould Brian W. , Cox Thomas L. , Perali Federico 
Published: July 2006

AbstractA systems model of U.S. food fats and oils demand is estimated using quarterly time‐series data for the period 1962–87. Demographic scaling is used to incorporate demographic variables and per capita government butter donations. In addition to price, income, and demographic demand elasticities, dietary fat intake elasticities are calculated for each of the demographic characteristics included in the study. All of the five own‐price elasticities are statistically significant, as are fifteen of the twenty cross‐price elasticities. Fourteen of the fifteen demographic elasticities are statistically significant.
Distinguishing between Market Participation and Infrequency of Purchase Models of Butter Demand
Authors: Blisard Noel , Blaylock James 
Published: July 2006

AbstractHousehold butter expenditures are modeled by market participation and infrequency‐of‐purchase specifications. The market participation model assumes that zero expenditures represent either traditional corner solutions or consumers who never use the product, whereas the infrequency‐of‐purchase model assumes that zero expenditures represent either corner solutions or consumption out of storage. We determine that the infrequency‐of‐purchase specification is preferred to the market participation model by applying a nonnested test based upon likelihood functions. If household expenditure surveys contained information about participation and frequency of purchase, a likelihood function which contained both models could be written and estimated.
Hedging Production Risk With Options
Authors: Sakong Yong , Hayes Dermot J. , Hallam Arne 
Published: July 2006

AbstractThe expected utility maximization problem is solved for producers with both price and production uncertainty who have access to both futures and options markets. Introduction of production uncertainty alters the optimal futures and options position and almost always makes it optimal for the producer to purchase put options and to underhedge on the futures market. Simulation results lend support to the practice of hedging the minimum expected yield on the futures market and hedging remaining expected production against downside price risk using put options. The results are strengthened if the producer expects local production to influence national prices and if risk aversion is higher at low income levels.
A Dynamic Model of Oligopoly in the Coffee Export Market
Authors: Karp Larry S. , Perloff Jeffrey M. 
Published: July 2006

AbstractA linear‐quadratic, dynamic feedback oligopoly model that nests various market structures is used to estimate the degree of competitiveness and the adjustment paths of the two largest coffee exporters, Brazil and Colombia. Their estimated behavior is relatively competitive. This subgame perfect dynamic model is compared to a standard static oligopoly model and the open‐loop model (the dynamic generalization of the standard static model). Both classical and Bayesian tests of open‐loop and feedback dynamic models are reported.
Why Did the Number of Young Farm Entrants Decline?
Authors: Gale H. Fred 
Published: July 2006

AbstractThe influence of demographic and economic factors on the number of young farm entrants is investigated. After controlling for the demographic effect, it is found that higher commodity prices, lower real interest rates, and lower land values are associated with greater entry. Regional effects suggest lower entry in states with better nonfarm opportunities. Demographic factors suggest that the shrinking pool of potential entrants will lead to further decline in farm entry. The decline in farm entry has important implications for the future structure of farming in the United States.
Field‐Level Measurement of Land Productivity and Program Slippage
Authors: Hoag Dana L. , Foster William E. , Babcock Bruce A. 
Published: July 2006

AbstractWe measure the significance of heterogeneous land quality in determining the efficacy of commodity program acreage reduction requirements in reducing farm output. Field‐level analysis isolates the influence of land productivity from other factors to gauge the importance of the land decisions on slippage. Results from six North Carolina counties for 1985–88 show that yield increases from the diversion of low‐quality land by individual farmers contribute relatively little to aggregate increases in average yield. The results are consistent with other studies finding that slippage is a result of interregional effects rather than of intraregional or intrafarm effects.
Effect of Stock Size and Regulations on Fishing Industry Cost and Structure: The Surf Clam Industry
Authors: Lipton Douglas W. , Strand Ivar E. 
Published: July 2006

AbstractFishing costs are dependent on the size of the fish stock and regulations. Changes in these factors alter the equilibrium industry structure. In a multiproduct fishery, it is not possible to generalize how a reduction in industry catch will be accomplished, through a reduction in catch per vessel or in the number of vessels. Multiproduct cost functions are estimated for the Atlantic clam fishery. Simulations reveal that optimal harvest would be achieved with an increase in the number of vessels and a decrease in the catch per vessel of surf clams and an increase in the catch of ocean quahogs.
Political Preference Functions and Public Policy Reform
Authors: Rausser Gordon C. , Foster William E. 
Published: July 2006

AbstractA model of policy making is developed where governments seek to maximize support from social groups through the combination of both PERT (social‐welfare‐increasing) and PERT (welfare‐transferring) policies. The implicit weights of a political preference function shift with a change in the relative cost of interest group organizing. Attention is paid to the degree of wealth transfers as total social welfare increases because of PERT policy changes. The model demonstrates that, in the case of two competing groups, the weight given to one group in the allocation of social surplus will increase as total social welfare increases with a bias toward the other group. The relative weights placed on consumers and producers based on PEST policies alone are misleading indicators of the political influence of groups. A number of general implications of this political economic analysis for the reform of public policies are investigated.
Pass‐Through of Exchange Rates and Tariffs in Brazil—U.S. Tobacco Trade
Authors: Pompelli Gregory K. , Pick Daniel H. 
Published: July 2006

AbstractThis paper examines the extent to which exchange rate and tariff changes are passed through in U.S. import prices of unmanufactured tobacco from Brazil. The model used considers the possibility of market imperfections in international trade and the potential effects of strategic trade policies. The results indicate that agricultural prices may not be as flexible as commonly thought. Furthermore, exchange rate and tariff changes are not fully passed through to U.S. tobacco import prices, which indicates that firms selling Brazilian tobacco may use trade strategies to maintain or even increase their trade shares in the U.S. tobacco market.
Investment Potential of Agricultural Futures Contracts
Authors: Fortenbery T. Randall , Hauser Robert J. 
Published: July 2006

AbstractInvestment benefits from trading live cattle, hog, corn, and soybean futures contracts are considered under the assumption that the investor's risk/return evaluation is relative to a highly diversified stock portfolio. A mean‐variance approach is used to find the “optimal” mix of investments for the initial stock portfolio and for portfolios which may include both stocks and futures. The addition of futures contracts to the portfolio rarely increases the portfolio return. This finding is consistent with risk‐premium results of previous studies. However, investment benefits from agricultural futures are found in the form of a reduction in the portfolio's nonsystematic risk.
Temporal Analysis of Income Earned by Former Agriculture Students
Authors: Preston Warren P. , Broder Josef M. , Almero Maria Cristina P. 
Published: July 2006

AbstractEarnings profiles of students formerly enrolled in a college of agriculture were analyzed in the context of labor market information. Analysis of covariance was used to estimate models explaining how salary determinants changed during the alumni's careers. Gender, education, year of job market entry, profit sharing, and personal emphasis on earnings were found to be significant determinants of starting incomes. Starting incomes were found to be a prime determinant of later year salaries along with experience on the immediate job, profit sharing, oral and technical skills, marital status, and place of residence. Labor market information was found to vary in quality across participants and have a limited shelf life.
Monetary Impacts on Prices in the Short and Long Run: Some Evidence from New Zealand
Authors: Robertson John C. , Orden David 
Published: July 2006

AbstractThis paper presents support for long‐run monetary neutrality based on evidence that individual time series for money, manufacturing prices, and agricultural prices are nonstationary but cointegrated, with a stationary proportional long‐run relationship among their levels. Dynamic simulations from a vector error‐correction model with this restriction imposed show that monetary shocks shift relative prices in favor of agriculture in the short run and permanently raise nominal prices. Manufacturing price shocks have similar long‐run effects but initially place agriculture in a cost‐price squeeze, while agricultural price shocks are transitory and have little impact on the other series.
Incorporating Risk Aversion into Dynamic Programming Models
Authors: Krautkraemer Jeffrey A. , van Kooten G. C. , Young Douglas L. 
Published: July 2006

AbstractMost previous stochastic dynamic programming (DP) applications have assumed that decision makers are risk neutral; however, risk permeates both intrayear and interyear relationships in most DP problems. Incorporating risk aversion to intrayear outcomes alone can violate the independence assumption of expected utility and can destabilize long‐run equilibrium returns. Aversion to riskiness of the long‐run returns suppresses the effect of sequential resolution of risk over time. Because tolerance of short‐run versus long‐run risk varies in dynamic situations, procedures for incorporating risk aversion should accommodate this variation. More research on risk averse DP formulations is needed.
Optimal Dynamic Hedging Decisions for Grain Producers
Authors: Martinez Steve W. , Zering Kelly D. 
Published: July 2006

AbstractThe application of an optimal dynamic hedging model was explored for a county in North Carolina. Corn yield, harvest corn basis, and December corn futures prices were forecast. The forecasts were used to calculate optimal dynamic hedge positions. When the hedge position was updated infrequently, commissions were only slightly higher than commissions from a fixed hedge. Gains from updating the hedge position over the corn growing season were not substantial compared to a fixed hedge position.
Measuring Recreation Values with Multiple Destination Trips
Authors: Mendelsohn Robert , Hof John , Peterson George , Johnson Reed 
Published: July 2006

AbstractTraditional travel cost analysis has either ignored multiple destination trips or arbitrarily allocated trip costs across visited sites. In this paper, combinations of multiple destinations are treated as unique sites and incorporated into a demand system. Empirical demand functions for multiple destination trips that include Bryce National Park are estimated. Consumer surplus calculations for single destination and multiple destination trips are compared.
Approximating Farm‐Level Returns to Incremental Advertising Expenditure: Methods and an Application to the Australian Meat Industry
Authors: Piggott Roley R. , Piggott Nicholas E. , Wright Vic E. 
Published: July 2006

AbstractEquilibrium displacement modeling is used to analyze the effects of incremental advertising expenditure by the Australian beef, lamb, and pork industries in domestic and export markets. The effects on prices, quantities traded, revenues, producer surpluses, and profits net of advertising expenditure are reported. Cross‐commodity impacts of advertising are highlighted, including how one industry has to adjust its advertising expenditure to preserve profit levels in the face of increased advertising by another industry. The procedures used are useful when decisions about advertising expenditure need to be made quickly.
Production Uncertainty and Factor Price Disparity in the Slaughter Cattle Market: Theory and Evidence
Authors: Fausti Scott W. , Feuz Dillon M. 
Published: July 2006

AbstractA model of a competitive firm facing uncertainty with respect to input quality is applied to the issue of price differentials existing between slaughter cattle marketing alternatives. The marketing alternatives are live weight, dressed weight, and dressed weight and grade. The model demonstrates that price differentials between marketing alternatives are the result of buyer uncertainty over cattle quality. If buyers are assumed risk averse, then the price differential between alternatives increases. These results lead to the proposition of a theory of factor price disparity, and empirical evidence is presented in support of this theory.
Factor Bias under Stochastic Technical Change
Authors: Lambert David K. , Shonkwiler J.S. 
Published: July 2006

AbstractTime‐series procedures are employed to determine the influence of technological change in inducing factor bias in U.S. agricultural production between 1948 and 1983. A dynamic measurement error model is used to link research expenditures to the unobserved technological change variable. Biasedness in labor and material factor shares is established.
Test‐Retest Reliability of Contingent Valuation with Independent Sample Pretest and Posttest Control Groups
Authors: Teisl Mario F. , Boyle Kevin J. , McCollum Daniel W. , Reiling Stephen D. 
Published: July 2006

AbstractTest‐retest, the standard method used to investigate reliability of contingent valuation, is limited because when the time period between the two surveys is relatively short the study may exhibit testing recall. Conversely, when the time between the two surveys increases there is an increased chance the true value will change. The test‐retest design cannot isolate these effects. Independent pretest and posttest control groups allow testing of reliability even when recall occurs or the true value changes. Using this design, we found ex post estimates of Hicksian surplus are reliable regardless of whether respondents have direct experience with an activity.
Welfare Estimation Using Aggregate and Individual‐Observation Models: A Comparison Using Monte Carlo Techniques
Authors: Hellerstein Daniel 
Published: July 2006

AbstractDue to the weak behavioral foundations of aggregate demand models, zonal travel cost models have been largely abandoned in favor of models based on individual observations. However, sample selection difficulties in individual‐observation models often require the use of distribution‐sensitive limited‐dependent variables estimators. In this paper I use Monte‐Carlo simulations to investigate whether the bias from aggregation is worse than possible bias from these narrowly specified estimators. Somewhat surprisingly, the results indicate that zonal models often outperform the individual‐observation models, especially when using an aggregate model that incorporates intrazonal variance of the explanatory variables.
Nonlinear Pricing Schemes for Agricultural Cooperatives
Authors: Vercammen James , Fulton Murray , Hyde Charles 
Published: July 2006

AbstractStandard pricing practices are generally not efficient for a cooperative. Sexton (1986) suggests that membership fees/rebates can be used to facilitate efficient pricing, but such schemes may not be feasible because of membership heterogeneity and information asymmetries. In this paper a constrained efficient pricing rule for a cooperative is derived that explicitly addresses the heterogeneity and information constraints. The optimal rule generally entails nonlinear pricing which, for the case of a farm purchasing cooperative, entails a higher average price for higher delivery volumes. The constrained efficient rule is modified to distribute the benefits more evenly over the cooperative's membership.
Reversal of Fortune: Immiserizing Technical Change in Agriculture
Authors: Alston Julian M. , Martin Will J. 
Published: July 2006

AbstractSeveral recent studies have reported the possibility of immiserizing technical change in agriculture. In these studies, the interaction of government commodity policy and technical change has been shown potentially to lead to a loss of national welfare, a negative rate of return to research. The purpose of this paper is to tie these recent results to the earlier results of Bhagwati and Johnson on immiserizing growth (technical change), and to offer a more general condition for describing the impacts of distortions on the benefits from technical change.
Risk Response in the Beef Marketing Channel: A Multivariate Generalized ARCH‐M Approach
Authors: Holt Matthew T. 
Published: July 2006

AbstractA model of the farm‐retail price spread for beef is specified under rational expectations, in which systematic risk response on the part of marketing intermediaries is allowed. The three‐equation structural model contains potentially time‐varying risk terms in margin and supply equations, which I approximate and estimate using a multivariate GARCH‐in‐Mean approach. The estimated model is used to infer relative risk premia in beef margins, and to simulate short‐run equilibrium risk effects. Results indicate that price risk has, at times, had substantial impacts on farm and retail beef prices and production.
Food Marketing Technology and Contingency Market Valuation
Authors: Holloway Garth J. , Zwart Anthony C. 
Published: July 2006

AbstractMarketing activities are introduced into a rational expectations model of the food marketing system. The model is used to evaluate effects of alternative marketing technologies on the distribution of the benefits of contingency markets in agriculture. Benefits depend on two parameters: the cost share of farm inputs and the elasticity of substitution between farm and nonfarm inputs in food marketing. Over a broad spectrum of technologies, consumers are likely to be the net beneficiaries and farmers the net losers from the provision of contingency markets.