Carpio, Carlos E.

By: Boonsaeng, Tullaya; Carpio, Carlos E.
This study evaluates the differences between the Exact Affine Stone Index (EASI) demand model estimates obtained using Consumer Expenditure Survey (CEX) data and Nielsen Homescan data. Results indicated that elasticities obtained from CEX and Homescan data–based demand models differ not only statistically but also economically. Own-price elasticities obtained from the CEX data–based demand model were more inelastic than those obtained from the demand model estimated using Homescan data. Further, differences between expenditure elasticities did not follow a specific pattern. We found evidence suggesting that the main source of differences is the price index used for the estimation.
By: Ramirez, Octavio A.; Carpio, Carlos E.
This study hypothetically analyzes the distribution of the premiums paid and thus the subsidies received by farmers participating in the Risk Management Agency (RMA) multi-peril crop insurance program. The results show a wide spread in the effective subsidy levels, to where some producers might not be receiving any subsidies at all (i.e., they actually pay close to their full actuarially fair premium), while others only pay a small fraction of their actuarially fair premium. More importantly, the results show that “shrinkage” estimators such as the one used by the RMA have the unintended negative consequence of disproportionally subsidizing farmers who are less effective in managing risk. Producers whose farms exhibit higher downside yield variability receive much more generous subsidies than those with lower levels of yield variability.
By: Zapata, Samuel D.; Carpio, Carlos E.; Isengildina-Massa, Olga; Lamie, R. David
Despite the touted potential of e-commerce to improve agriculture profits, the literature on effectiveness of e-commerce is very limited. This paper assesses the economic impact of an electronic trade platform (i.e., MarketMaker) on agricultural producers. Contingent valuation techniques are employed to estimate the monetary value that producers placed on MarketMaker services. Results indicate that producers are willing to pay $47.02 annually for the services they receive. Registration type, amount of time registered, amount of time devoted to MarketMaker, type of user, number of marketing contacts received, and firm total annual sales have a significant effect on producers’ willingness to pay.
By: Carpio, Carlos E.; Isengildina-Massa, Olga
This paper develops a framework for assessing the potential economic impact of a regional promotion campaign combining contingent valuation methods with a partial displacement equilibrium model. The proposed approach is applied to the evaluation of the potential economic impact of the locally grown campaign in South Carolina. Results reveal that the first season of the promotion campaign increased consumer willingness to pay for produce by 3.4%. The change in consumer preferences and the corresponding shift in demand increased producer surplus by $3.09 million. This economic benefit, combined with the 2007 promotion campaign investment, resulted in a benefit-cost ratio of 6.18.
By: Carpio, Carlos E.; Wohlgenant, Michael K.; Boonsaeng, Tullaya
Using data from the 2000 National Survey on Recreation and the Environment, this study explores factors affecting visits by the American population to farms and the economic value of the rural landscapes for farm visitors. The number of farm recreation trip visits was estimated to have own-price elasticity of -0.43 and an income elasticity of 0.24. Location of residence, race, and gender were found to be important determinants of the number of farm trips. The calculated consumer surplus is estimated at $174.82/ trip, of which $33.50 is due to the rural landscape.