Volume 17, Issue 1, July 1992

July, 1992

By: Tobey, James A.; Reilly, John M.; Kane, Sally
This paper challenges the hypothesis that negative yield effects in key temperate grain producing regions of the world resulting from global climate change would have a serious impact on world food production. Model results demonstrate that even with concurrent productivity losses in the major grain producing regions of the world, global warming will not seriously disrupt world agricultural markets. Country/regional crop yield changes induce interregional adjustments in production and consumption that serve to buffer the severity of climate change impacts on world agriculture and result in relatively modest impacts on world agricultural prices and domestic economies.

July, 1992

By: Seale, James L., Jr.; Sparks, Amy L.; Buxton, Boyd M.
A Rotterdam import allocation model is used to fit import data for fresh apples in four importing markets important to U.S. apple exporters. Nested tests rejected homotheticity but could not reject homogeneity, symmetry, or separability among import suppliers. A Monte Carlo test rejected first-order autocorrelation in each market. Expenditure and price elasticities are calculated and reported.

July, 1992

By: Ruppel, Fred J.; Fuller, Stephen W.
Laboratory experimentation was used to assess the impacts of information disclosure in imperfect markets. A dual oligopoly market structure was designed with contract information disclosed to subjects under three treatments: no, partial, and full disclosure. Regression analysis revealed some increase in selling price with full information disclosure, but no discernable effects on negotiated prices with partial disclosure. Alternative specifications showed large traders earning significantly lower profits, and information on large traders significantly beneficial to both buyers and sellers. Probit analysis of information selection determinants revealed no significant economic content in trader requests for information under partial disclosure.

July, 1992

By: Goodwin, Barry K.
A conceptual model of grocery coupon usage is developed and maximum likelihood estimates of a Tobit model are used to assess the influence of several economic and demographic variables on consumers' use of grocery coupons. Specific factors considered include income, age, household size, race, education, shopping practices, and size and composition of grocery transactions. The analysis includes a combination of scanner and survey data collected from 1,047 consumers. Results confirm strong effects for household size, race, shopping practices, and size and composition of grocery transactions.

July, 1992

By: Elam, Emmett W.
This research examines cash forward contracting of fed cattle. For an individual feeder, a cash contract eliminates basis risk (as compared to a futures hedge). However, the disadvantage is that the contract price is estimated to be lower than the futures hedge price by $.28 - $.59/ cwt for steers and $.86 - $1.64.cwt for heifers. From the industry perspective, contracting appears to have a negative impact on cash prices. An increase of 1,000 head in U.S. monthly contract cattle shipments is associated with a $.003-$.009/cwt decrease in the U.S. average cash price. The negative impact of cash contracting varies by state.

July, 1992

By: Donaldson, David
This article investigates the properties, good and bad, of social evaluations based on four money measures of well-being or changes in well-being: compensating variations, money metrics, extended money metrics, and welfare ratios. Consistency of social rankings (transitivity, asymmetry of preference), the possibility of incorporating inequality aversions, independence of the choice of reference prices, and the ethics implicit in the evaluations are considered. In addition, these procedures are contrasted with utility aggregation using equivalence scales.

July, 1992

By: Amegbeto, Koffi N.; Featherstone, Allen M.
Six measures of returns are used to estimate the most "appropriate" market index for southeast Kansas farms. Results suggest that localized indices are more appropriate than state indices for use as the market index. The appropriate index was used to estimate systematic and nonsystematic risk and risk costs for farm planning. Estimated risks depend on the choice of market index, whereas risk costs depend on the index choice and the risk aversion are considered. More risk-averse specialized farmers are not completely compensated for risk.

July, 1992

By: Turvey, Calum G.; Baker, Timothy G.; Weersink, Alfons
This article examines farm operating risks and cash-rent determination through the use of the efficient set mathematics. The efficient set mathematics proves to be a pragmatic approach to characterizing operating risks, and the relationships between operating risks and cash-rent determination. Various separation theorems are used to postulate the relationship between operating risk and cash rents. Preliminary evidence appears to support the theoretical conclusion that opperating risk and cash-rent determination are related.

July, 1992

By: Villezca-Becerra, Pedro A.; Shumway, C. Richard
Aggregate dual models are specified to examine multiple-output production relationships in each of four major, geographically dispersed, agricultural states (California, Iowa, Texas, and Florida). Three locally-flexible functional forms (translog, generalized Leontief, and normalized quadratic) are employed to conduct analytic simplification tests, estimate systems of output supply and input demand equations consistent with nonrejected hypotheses, derive elasticities, and determine to what extent analytic simplification tests and policy-relevant results are sensitive to functional form and state. Important differences in empirical implications were found due both to functional form and geographic unit, but differences were greater for the latter.