Volume 22, Issue 2, December 1997

December, 1997

By: Selley, Roger A.; Wilson, Paul N.
Agricultural economists have been challenged in recent years, by voices inside and outside the profession, to evaluate the integrity of the operational bridge between research and extension activities in the land grant system. This essay investigates links between the work of risk researchers and outreach programs. Survey results indicate that (a) a significant number of risk researchers are involved in extension activities; (b) extension economists are less frequently involved in risk research than their colleagues with no extension appointment; (c) full-time extension economists use less sophisticated risk tools in their outreach efforts than used in their research; and (d) all respondents, regardless of appointment, see a need for more applied risk analysis. Major challenges include a lack of financial support to close the data gap and to conduct relevant applied analysis present major communication challenges.

December, 1997

This section includes: JARE Editor's Report for 1996-97; Reviewers, July 1996- June 1997; WAEA 1996 Award Winners; Past Presidents, Western Agricultural Economics Association, 1927-97; Past Editors; JARE Author Index, Volumes 20-22, 1995-97; JARE Key Words Index, Volumes 20-22, 1995-97; Guidelines for Submitting Manuscripts to JARE; Membership Information; Back Cover

December, 1997

By: Tiller, Kelly; Jakus, Paul M.; Park, William M.
Increased landfilling costs and state-mandated reductions in municipal solid waste (MSW) disposal have combined to increase interest in recycling as an MSW management option. Most benefit-cost analyses, however, focus solely on urban curbside recycling programs and/or fail to include the benefits which accrue to households from the opportunity to recycle. This study focuses on the economic feasibility of dropoff recycling in rural areas, presenting estimates of household willingness to pay (WTP) for dropoff recycling in a rural/suburban area of Tennessee. Using contingent valuation, the most conservative mean household WTP is near $4.00 per household per month.

December, 1997

By: Loomis, John B.; Ekstrand, Earl
A split-sample design is used to test for a difference between mean willingness to pay (WTP) for protecting the Mexican spotted owl versus protecting 62 threatened/endangered species which includes the Mexican spotted owl. The multiple bounded contingent valuation method is used in a mail survey of U.S. residents. The mean WTP amounts are statistically different at the 0.1 confidence level indicating the multiple-bounded mail survey passes the scope test. The range of estimated benefits of preserving the 4.6 million acres of critical habitat for the Mexican spotted owl substantially outweighs the costs of the recovery effort.

December, 1997

By: Cohen, Daniel R.; Zilberman, David
Offering evidence from the California Irrigation Management Information System (CIMIS) and centering around Kenkel and Norris conclusions regarding "Agricultural Producers' Willingness to Pay for Real-Time Mesoscale Weather Information," this article questions the use of growers' hypothetical willingness-to-pay responses as the sole basis for deciding whether to invest in Mesonet, a statewide network of weather station. Survey respondents' lack of familiarity with a new technology and strategic behavior lead to underestimates of actual willingness to pay. Moreover, weather information has numerous agricultural and nonagricultural uses, and only sampling growers overlooks gains to other potential users. Low hypothetical willingness-to-pay responses of a subsection of the potential adopters should necessarily discourage investment. Rather, a substantial willingness to pay may signal a need for further market research.

December, 1997

By: Perrin, Richard K.
This study analytically evaluates the impact of technological change on output and input markets in a competitive industry of identical firms. Firm-level technology and technological change are represented parametrically as local approximations to unknown functional forms. The comparative statics analysis solved for changes in equilibrium market prices and quantities as functions of parameters that characterized technological change. The technology-induced shift-weighted induced change input prices. The model provides a consistent and systematic framework for evaluating the impact of technological change, either ex ante or ex post.

December, 1997

By: McNew, Kevin; Fackler, Paul L.
Cointegration methods are increasingly used to test for market efficiency and integration. The economic rationale for these tests, however, is generally unclear. Using a simple spatial equilibrium model to simulate equilibrium price behavior, it is shown that prices in a well-integrated, efficient market need not be cointegrated. Furthermore, the number of cointegrating relationships among prices is not a good indicator of the degree to which a market is integrated.