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WHOLESALER MARKUP DECISIONS UNDER DEMAND UNCERTAINTY AgEcon
Park, Timothy A.; Lohr, Luanne.
We examine consistency with economic theory of markup decisions for a risk averse firm facing demand uncertainty. We derive testable comparative static results that describe the influence on the markup of expected demand, demand uncertainty, average variable costs and exogenous demand shifters. We test the model using data from the wholesale market for organic lettuce. Our results demonstrated that risk averse wholesalers raise markups as expected demand increases and reduce them as uncertainty increases.
Tipo: Working or Discussion Paper Palavras-chave: Risk aversion; Marketing margins; Comparative statics; Organics; Demand and Price Analysis; Risk and Uncertainty.
Ano: 1996 URL: http://purl.umn.edu/16699
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Ambiguous jointness and multifunctionality AgEcon
Romstad, Eirik.
Many previous analyses of multifunctionality in agriculture claim there is positive jointness between the production commodities and nonmarket goods and services. Those analyses have not treated acreage as an endogenous variable. This leads to several errors in terms of the analysis of policy impacts, and hence also the policy advice. The main contribution of this paper is the development of an analytical framework where acreage is endogenously determined. This framework is then used to demonstrate that any policy that influences resource allocation also affects agricultural commodity production. Hence, there is no such thing as a fully decoupled support. The impacts on commodity markets from direct payments to environmental goods and services are,...
Tipo: Conference Paper or Presentation Palavras-chave: Multi-product production; Comparative statics; Nonmarket goods; Agricultural and Food Policy; Environmental Economics and Policy; Production Economics; Q180; Q200.
Ano: 2009 URL: http://purl.umn.edu/51539
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Cross-Sector Relationships Between the Corn Feed Grains and Livestock and Poultry Economies AgEcon
Marsh, John M..
A systems econometric model of the livestock (beef and pork), poultry (broiler), and corn sectors was estimated to evaluate cross-sector relationships. The equilibrium multipliers and comparative statics indicate unequal cross-effect of market disturbances, e.g., shocks in the livestock and poultry markets impact corn demand and supply more than shocks in the corn market impact livestock and poultry demands and supplies. Recent 2003 mad cow disease (BSE) problems in Canada and the United States display nontrivial cross-effects. For example, the BSE occurrences reduce real corn revenue in the United States by $0.62 billion, or 5.0% of its 2003 revenue.
Tipo: Journal Article Palavras-chave: Autoregressive distributed lags; Comparative statics; Equilibrium multipliers; Revenue adjustments; Agribusiness; Demand and Price Analysis.
Ano: 2007 URL: http://purl.umn.edu/8595
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ECONOMIC EFFECT OF IMPERFECT INFORMATION ON CONSERVATION DECISIONS AgEcon
Paudel, Krishna P.; Lohr, Luanne.
Cotton farmers in the Piedmont region incorrectly believe conservation systems with winter cover crop and no-till cultivation yield less than conventional systems. We model the effect of organic matter on productivity and show how ignoring this effect causes returns to be underestimated. Farmers with imperfect information underinvest in residue management.
Tipo: Working or Discussion Paper Palavras-chave: Residue management; Organic matter; Productivity; Comparative statics; Farm Management; Land Economics/Use; Productivity Analysis.
Ano: 1996 URL: http://purl.umn.edu/16645
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