Volume 21, Issue 1, July 1996

July, 1996

By: Perry, Gregory M.
Mentoring is used in many fields to prepare graduate students for a professional career. This study focuses on mentoring of Ph.D. students in agricultural economics, including the effects of mentoring on expected research output and students' satisfaction with time spent with their major professor. The sink-or-swim mentoring method seems to create the most discord among students and also negatively influences expected research output. The students' gender and citizenship seem to also impact expected output.

July, 1996

By: Champ, Patricia A.; Bishop, Richard C.
This article discusses the results of four experiments to test the accuracy of recreational expenditures reported in survey relative to expenditures reported in dairies. We found few situations in which the reported expenditures in the surveys and diaries differ significantly. In general, we conclude that individuals are able to accurately report recreational expenditures in ex post mail surveys. Given the wide usage of survey expenditure data by economists, we find this results encouraging.

July, 1996

By: Lence, Sergio H.
The most important minimum-variance hedging ration assumptions are (a) that production is deterministic and (b) that all of the agent's wealth is invested in the cash position. Stochastic production greatly reduces optimal hedge ratios. An alternative investment greatly reduces opportunity costs of not hedging by "diluting" the cash position. Stochastic production and/or alternative investments render the costs associated with hedging relatively more important, yielding almost negligible net benefits of hedging. Hence, hedging costs typically dismiss in hedging models for being seemingly negligible are important determinants of hedging behavior.

July, 1996

By: Brookshire, David S.; Ganderton, Philip T.; McKee, Michael
When market transactions generate negative externalities, the injured party may initiate court action to prevent harm or to obtain compensation. The political response, in some cases, has been to broaden the set of agents who can intervene through the court, often by admitting entirely new categories of potential intervenors. We employ an experimental market setting to investigate the effect of an increase in the number of potential intervenors (introduced as admitting an additional class of persons having the necessary standing in law). The results suggest that there will be a substantial increase in the number of actual interventions. The increase means that social resources expended on interventions will increase and there may be a consequent reduction in trading activity in the affected markets.

July, 1996

By: Doss, Cheryl R.; Taff, Steven J.
Using detailed residential housing and wetland location data, we determine relative preferences for proximity to four broad classes of wetlands, as expressed through housing values. Implicit prices for proximity to open-water and scrub-shrub wetlands are relatively higher than those for emergent-vegetation and forested wetlands.

July, 1996

By: Jakus, Paul M.; Tiller, Kelly; Park, William M.
Rising landfill costs have forced solid waste managers to consider ways to reduce the waste stream. Using survey data, models explaining the weight of recyclables generated by households are estimated for paper and glass. Results indicate that households respond to the time cost of recycling paper but not glass. The waste generation models imply total monthly willingness to pay for recycling is $5.78 per household. Waste managers may increase the weight of recycled waste stream with programs which lower perceived time costs of nonrecyclers and improve the efficiency of recyclers.

July, 1996

By: Chowdhury, Manzoor E.; Lacewell, Ronald D.
This study estimates the cost effectiveness of alternative environmental policies for controlling nitrate contamination of groundwater in the Seymour aquifer region of Texas. Results from biophysical simulation model are integrated with a farm-level optimization model. The study also compares the cost of bottled water, used as the lower-bound estimate of benefits of groundwater protection, with the least costly environmental policy. Results indicate that the least-cost policy alternative for the region is about $1 million either to farmers or to the local government and it is approximately three times the cost of bottled water.

July, 1996

By: Cameron, Trudy Ann; Shaw, W. Douglass; Ragland, Shannon E.; Callaway, J. Mac; Keefe, Sally
A model of recreation demand is developed to determine the role of water levels in determining participation at and frequency of trips taken to various federal reservoirs and rivers in the Columbia River Basin. Contingent behavior data are required to break the near-perfect multicollinearities among water levels at some waters. We combine demand data for each survey respondent at different levels of time aggregation (summer months, rest of year, and annual), and our empirical models accommodate the natural heteroskedasticity that results. Our empirical results show it to be quite important to control carefully for survey nonresponse bias.