By: Baek, Jungho ; Xu, Jiangqin
Up until now, relatively little attention has been given to the asymmetric effects of exchange rates on global trade flows of forest products. Thus, the primary thrust of this article is to probe the asymmetric influences exchange rate fluctuations have on bilateral trade flows of various forest products between the United States and Canada. We use the nonlinear autoregressive distributed lag (NARDL) method and discover strong evidence that the ups and downs of exchange rates appear to have asymmetric impacts on U.S. exports and imports of forest products in the long run. However, there is little evidence that the exchange rate asymmetry is present in the short run.
By: De Marchi, Elisa ; Cavaliere, Alessia ; Banterle, Alessandro
European consumers have generally been reluctant to accept genetically modified food. Novel breeding technologies that avoid transgenic manipulations seem to be more positively perceived by consumers, opening new horizons for the market. This paper investigates the motivations of consumer acceptance for cisgenic products. By comparing four information treatments (i.e., basic information, naturalness, health, and environment), we demonstrate that information on health-related benefits and especially on environmental benefits contributes to generate a positive communication landscape around cisgenic food. The results provide insights for the development of food policies and communication strategies aimed at increasing consumer acceptance for edited food.
By: Sabala, Ethan ; Devadoss, Stephen
Using a theoretical and empirical spatial equilibrium model, we examine the effect of the Chinese 25% tariff on the world sorghum market under various market structures. The effects of the tariff are less pronounced under bilateral monopoly than under perfect competition. Specifically, the reallocations of trade caused by the tariff are lessened as the United States uses its market power to mitigate adverse effects. This reduces the tariff's impacts on prices, production, consumption, and welfare for most countries. However, the calibration revealed that the United States and China do not exert significant market power on the world sorghum market and that international sorghum trade is more accurately represented by perfect competition.
By: Varshney, Deepak ; Joshi, Pramod Kumar ; Roy, Devesh ; Kumar, Anjani
Using a survey of 1,500 farmers, we identify farmer-level constraints to adoption of modern cultivars in Rajasthan, India, and decompose the overall elasticity into the elasticities of adoption probability and use intensity. We find that access to credit and intensity of extension services received drive adoption of modern cultivars, but both factors are more important for determining adoption probability than for determining use intensity. Moreover, the study assess the roles that key traits of individual cultivars play in their adoption. Varietal traits significant for the adoption of modern cultivars vary by crop and geography. However, the main driver for continuing old cultivars across crops is taste attributes.
By: Ren, Yongwang ; Lambert, Dayton M. ; Clark, Christopher D. ; Boyer, Christopher N. ; Griffith, Andrew P.
Cattle producers in the Fescue Belt predominantly rely on cool-season grass (CSG) pastures. Supplementing CSGs with warm-season grasses (WSG) can provide economic and environmental benefits. We elicit Tennessee cattle producer willingness-to-adopt WSG using data from a hypothetical choice experiment that offered a monetary incentive to establish WSG pasture. A novel double-hurdle regression with Student-t errors was estimated using a Bayesian Hamiltonian Monte Carlo procedure. About 66% of participants were willing to convert 14%-21% of their pasture acres to WSG depending on the incentive amount. A $95/acre incentive is estimated to convert 7,631 acres to WSG, costing $0.77 million.
By: MacLachlan, Matthew J. ; Boussios, David ; Hagerman, Amy D.
Export restrictions often exacerbate the direct production losses and control costs from infectious animal disease outbreaks by reducing the pool of consumers of animal products. However, the uncertain timing and the varying extent of the trade restrictions make it challenging to measure these indirect costs of disease outbreaks. We examine two outbreaks of highly pathogenic avian influenza (2004 and 2014Ð2015) that saw few broiler chickens lost but significant trade disruptions from embargoes. We evaluate the timing and estimate the magnitude of the economic shocks from these embargoes, finding brief but considerable trade declines and distinct economic responses to each outbreak.