Theory of the firm suggests that optimal production levels decrease as output price becomes random. Firms operating in industries with long production lags are also exposed to input price uncertainty. This paper provides a novel decision theoretic model in the presence of both input and output price uncertainty and uses U.S. beef sector data to test theoretical propositions concerning firm behavior. Our findings confirm that, in a two-stage production, the introduction of input price uncertainty leads to increased use of the input and an increased level of output in stage one and a decreased level of output in stage two.
{"title":"Firm Decision Making under Both Input and Output Price Uncertainty","authors":"Ardian Harri, J. Maples, J. M. Riley, Jesse Tack","doi":"10.22004/AG.ECON.302496","DOIUrl":"https://doi.org/10.22004/AG.ECON.302496","url":null,"abstract":"Theory of the firm suggests that optimal production levels decrease as output price becomes random. Firms operating in industries with long production lags are also exposed to input price uncertainty. This paper provides a novel decision theoretic model in the presence of both input and output price uncertainty and uses U.S. beef sector data to test theoretical propositions concerning firm behavior. Our findings confirm that, in a two-stage production, the introduction of input price uncertainty leads to increased use of the input and an increased level of output in stage one and a decreased level of output in stage two.","PeriodicalId":54890,"journal":{"name":"Journal of Agricultural and Resource Economics","volume":"45 1","pages":"549-570"},"PeriodicalIF":1.4,"publicationDate":"2020-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"68538101","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This paper uses the staggered difference-in-difference model to assess the ex post impact of precision agriculture (PA) technology adoption on whole-farm profitability. The results indicate that PA technologies do not contribute as much to farm profitability when analyzed over a period of time. PA technologies may increase some operational efficiency, but farmers should not adopt PA assuming that it will improve farm profitability. The positive contribution of a majority of PA technologies to farm profitability has not yet been established.
{"title":"Precision Agriculture Technologies and Farm Profitability","authors":"Sunil P. Dhoubhadel","doi":"10.22004/AG.ECON.303598","DOIUrl":"https://doi.org/10.22004/AG.ECON.303598","url":null,"abstract":"This paper uses the staggered difference-in-difference model to assess the ex post impact of precision agriculture (PA) technology adoption on whole-farm profitability. The results indicate that PA technologies do not contribute as much to farm profitability when analyzed over a period of time. PA technologies may increase some operational efficiency, but farmers should not adopt PA assuming that it will improve farm profitability. The positive contribution of a majority of PA technologies to farm profitability has not yet been established.","PeriodicalId":54890,"journal":{"name":"Journal of Agricultural and Resource Economics","volume":"1 1","pages":""},"PeriodicalIF":1.4,"publicationDate":"2020-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"68538775","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Divvying Up the Pie: U.S. Adults’ Preferences for USDA Expenditures in 2018","authors":"A. Collart, Shea G. Ishee, Keith H. Coble","doi":"10.22004/AG.ECON.307455","DOIUrl":"https://doi.org/10.22004/AG.ECON.307455","url":null,"abstract":"","PeriodicalId":54890,"journal":{"name":"Journal of Agricultural and Resource Economics","volume":"18 1","pages":""},"PeriodicalIF":1.4,"publicationDate":"2020-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"68540297","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Berkeley’s initiative on sugar tax policy is currently debated and it is quickly expanding to other states in the United States. Previous literature highlights the importance of consumer heterogeneity in evaluating the effect of sugar taxes. In this study, we use a demand model in characteristic space —BLP RC Logit demand— to identify the policy effect on preferences for sugary drinks and potential substitution patterns over 22 sugary drink products. Our results suggest that sugar taxes cause average valuation of sugar content to change from negative to positive. This type of “reactance” response is not driven by consumers with higher than average SSB consumption patterns. An examination on demand elasticities suggests Berkeley consumers become more responsive to prices of sugary drinks due to the policy implementation; however, it does not drive consumers to shift to diet drinks.
{"title":"Revisiting the Effects of Sugar Taxes on Sugary Drink Consumption: Evidence from the Random-Coefficient Demand Mode","authors":"Yinjunjie Zhang, M. Palma","doi":"10.22004/AG.ECON.303601","DOIUrl":"https://doi.org/10.22004/AG.ECON.303601","url":null,"abstract":"Berkeley’s initiative on sugar tax policy is currently debated and it is quickly expanding to other states in the United States. Previous literature highlights the importance of consumer heterogeneity in evaluating the effect of sugar taxes. In this study, we use a demand model in characteristic space —BLP RC Logit demand— to identify the policy effect on preferences for sugary drinks and potential substitution patterns over 22 sugary drink products. Our results suggest that sugar taxes cause average valuation of sugar content to change from negative to positive. This type of “reactance” response is not driven by consumers with higher than average SSB consumption patterns. An examination on demand elasticities suggests Berkeley consumers become more responsive to prices of sugary drinks due to the policy implementation; however, it does not drive consumers to shift to diet drinks.","PeriodicalId":54890,"journal":{"name":"Journal of Agricultural and Resource Economics","volume":"110 1","pages":""},"PeriodicalIF":1.4,"publicationDate":"2020-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"68538446","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Minfeng Tang, N. Thompson, C. Boyer, N. Widmar, T. Stewart, D. Lofgren, Nick Minton
Past attempts to price bull attributes have relied on static marginal valuations due to crosssectional data limitations. This analysis investigates if bull buyers’ marginal valuations of Angus bull attributes have changed over time using 17 years of bull auction data from Indiana. Results indicate statistically significant time effects on some traits (e.g., ribeye area, percent intermuscular fat, ribeye area expected progeny difference [EPD], and maternal milk EPD). Not all of these effects align with prior expectations. Nonetheless, results have important implications for the beef industry in terms of signaling quality ques and incorporating proven information in the form of EPDs.
{"title":"Temporal Changes in Angus Bull Attribute Valuations in the Midwest","authors":"Minfeng Tang, N. Thompson, C. Boyer, N. Widmar, T. Stewart, D. Lofgren, Nick Minton","doi":"10.22004/AG.ECON.302500","DOIUrl":"https://doi.org/10.22004/AG.ECON.302500","url":null,"abstract":"Past attempts to price bull attributes have relied on static marginal valuations due to crosssectional data limitations. This analysis investigates if bull buyers’ marginal valuations of Angus bull attributes have changed over time using 17 years of bull auction data from Indiana. Results indicate statistically significant time effects on some traits (e.g., ribeye area, percent intermuscular fat, ribeye area expected progeny difference [EPD], and maternal milk EPD). Not all of these effects align with prior expectations. Nonetheless, results have important implications for the beef industry in terms of signaling quality ques and incorporating proven information in the form of EPDs.","PeriodicalId":54890,"journal":{"name":"Journal of Agricultural and Resource Economics","volume":"45 1","pages":"518"},"PeriodicalIF":1.4,"publicationDate":"2020-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"68538712","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Occupational Injury and Working Days Lost in Northern Ireland’s Farming Sector","authors":"S. Angioloni, C. Jack, Ronan McCarry","doi":"10.22004/AG.ECON.307454","DOIUrl":"https://doi.org/10.22004/AG.ECON.307454","url":null,"abstract":"","PeriodicalId":54890,"journal":{"name":"Journal of Agricultural and Resource Economics","volume":"1 1","pages":""},"PeriodicalIF":1.4,"publicationDate":"2020-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"68539680","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Over-or underprovision of antimicrobials under free-riding and resistance externalities can be economically important through their impacts on animal health, human health, and food security. This paper models antimicrobial use given disease dynamics with (i) free-riding incentives and (ii) antimicrobial resistance. Our results suggest a strong potential for overprovision of antimicrobials when ignoring resistance dynamics. Numerical simulation indicates an increase in the cost of disease management with increases in resistance levels. Policy implications are discussed in the context of animal health and disease-control subsidy programs in the developing world as well as unregulated sale of antimicrobials.
{"title":"Optimal Antimicrobial Use under Countervailing Externalities","authors":"A. Delmond, Haseeb Ahmed","doi":"10.22004/AG.ECON.307456","DOIUrl":"https://doi.org/10.22004/AG.ECON.307456","url":null,"abstract":"Over-or underprovision of antimicrobials under free-riding and resistance externalities can be economically important through their impacts on animal health, human health, and food security. This paper models antimicrobial use given disease dynamics with (i) free-riding incentives and (ii) antimicrobial resistance. Our results suggest a strong potential for overprovision of antimicrobials when ignoring resistance dynamics. Numerical simulation indicates an increase in the cost of disease management with increases in resistance levels. Policy implications are discussed in the context of animal health and disease-control subsidy programs in the developing world as well as unregulated sale of antimicrobials.","PeriodicalId":54890,"journal":{"name":"Journal of Agricultural and Resource Economics","volume":"29 1","pages":""},"PeriodicalIF":1.4,"publicationDate":"2020-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"68539929","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Consumer Preference for Grass-Fed Beef: A Case of Food Safety Halo Effect","authors":"Kar H. Lim, Wuyang Hu, R. Nayga","doi":"10.22004/AG.ECON.307458","DOIUrl":"https://doi.org/10.22004/AG.ECON.307458","url":null,"abstract":"","PeriodicalId":54890,"journal":{"name":"Journal of Agricultural and Resource Economics","volume":"1 1","pages":""},"PeriodicalIF":1.4,"publicationDate":"2020-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"68540016","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Technology and Managerial Gaps in Contract Farming:The Case of Specialty Crop Production","authors":"A. Mishra, Joaquín Mayorga, Anjani Kumar","doi":"10.22004/AG.ECON.307460","DOIUrl":"https://doi.org/10.22004/AG.ECON.307460","url":null,"abstract":"","PeriodicalId":54890,"journal":{"name":"Journal of Agricultural and Resource Economics","volume":"1 1","pages":""},"PeriodicalIF":1.4,"publicationDate":"2020-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"68540129","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Neonicotinoid pesticide use in the U.S. ornamental horticulture industry continues to capture attention due to the potential health risks to pollinator insects. While several retailers have announced mandatory labeling policies for plants treated with neonicotinoids, little is known about how individual consumers react to a firm’s disclosure of neonicotinoid use in production and the extent to which this additional information is valued. Here, a laboratory experiment assessed consumers’ preferences for environmentally friendly production practices focusing on neonicotinoid labeling. Despite broad consumer unfamiliarity with neonicotinoids, results show consumers have differentiated preferences for neonicotinoidrelated labels and information disclosure.
{"title":"Consumer Preferences for Labels Disclosing the Use of Neonicotinoid Pesticides: Evidence from Experimental Auctions","authors":"Xuan Wei, H. Khachatryan, A. Rihn","doi":"10.22004/AG.ECON.302462","DOIUrl":"https://doi.org/10.22004/AG.ECON.302462","url":null,"abstract":"Neonicotinoid pesticide use in the U.S. ornamental horticulture industry continues to capture attention due to the potential health risks to pollinator insects. While several retailers have announced mandatory labeling policies for plants treated with neonicotinoids, little is known about how individual consumers react to a firm’s disclosure of neonicotinoid use in production and the extent to which this additional information is valued. Here, a laboratory experiment assessed consumers’ preferences for environmentally friendly production practices focusing on neonicotinoid labeling. Despite broad consumer unfamiliarity with neonicotinoids, results show consumers have differentiated preferences for neonicotinoidrelated labels and information disclosure.","PeriodicalId":54890,"journal":{"name":"Journal of Agricultural and Resource Economics","volume":"45 1","pages":"496-517"},"PeriodicalIF":1.4,"publicationDate":"2020-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"68538203","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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