SABIIA - Sistema Aberto e Integrado de Informação em Agricultura (Sabiia)

LaFrance, Jeffrey T.; Pope, Rulon D..

We extend the set of full rank nominal and deflated income demand systems to rational demand systems of any rank and present a unifying expression for the indirect preferences of all full rank demand models.

INCOME ELASTICITY AND FUNCTIONAL FORM

Palavras-chave: Aggregation; Functional form; Integrability; Rank; Rational demand systems; Demand and Price Analysis; D12; E21.

Ano: 2006

URL: http://purl.umn.edu/7152

Beatty, Timothy K.M.; LaFrance, Jeffrey T..

Aggregation Theory for Incomplete Systems

Palavras-chave: Demand and Price Analysis.

Ano: 2004

URL: http://purl.umn.edu/15835

LaFrance, Jeffrey T.; Beatty, Timothy K.M.; Pope, Rulon D..

Gorman's theory of demand is extended comprehensively to incomplete systems. The incomplete systems approach dramatically increases this class of models. The separate roles of symmetry and adding up are identified in the rank and the functional form of this class of models. We show that symmetry determines rank and the maximum rank is three. We show that adding up and 0o homogeneity determines the functional form and there is no functional form restriction for an incomplete system. We prove that every full rank system and reduced rank systems with a minimal level of degeneracy can be written as a polynomial in a single function of income. A complete set of closed form solutions for the indirect objective functions of this class of models is derived. A...

The Effects of a Fat Tax on Dairy Products

Palavras-chave: Aggregation; Rank; Functional form; Integrability; Incomplete systems; Weak integrability; Demand and Price Analysis; D12; E21.

Ano: 2005

URL: http://purl.umn.edu/25033

Chouinard, Hayley H.; Davis, David E.; LaFrance, Jeffrey T.; Perloff, Jeffrey M..

We apply an incomplete demand system to supermarket scanner data to estimate the effects of a fat tax on dairy products for different demographic groups. We find own-price elasticities of demand are relatively inelastic and vary little across groups. A fat tax may be an effective means to raise revenue, but will not result in a significant reduction in fat consumption. The welfare effects associated with a fat tax are large and vary greatly across demographic groups. These fat taxes are regressive in nature, as the elderly and poor suffer greater welfare losses.

Agricultural Arbitrage, Adjustment Costs, and the Intensive Margin

Palavras-chave: Fat tax; Incomplete demand system; Demand and Price Analysis; Livestock Production/Industries; Public Economics; H2; I18.

Ano: 2005

URL: http://purl.umn.edu/25078

Tack, Jesse B.; LaFrance, Jeffrey T..

Farmland and capital are an important and rapidly expanding component of the agricultural economy, and empirical evidence suggests that these assets are quasi-fixed in that adjustment costs are incurred when holdings are altered. Increased interest in the rate of return for investing in farmland suggests that an important consideration is the effect of adjustment costs on this return. A novel theoretical model is developed that ties together contributions from the farmland pricing and adjustment cost literatures, and the first order conditions for a utility maximizing decision maker are rearranged into intertemporal arbitrage equations that are similar in spirit to traditional finance models. The common assumptions that land and capital are quasi-fixed...

Tipo: Conference Paper or Presentation

Palavras-chave: Arbitrage; Adjustment Costs; Farmland; Asset Pricing; Capital; Cost Function; Risk; Production; Agricultural Finance; Consumer/Household Economics; Crop Production/Industries; Farm Management; Financial Economics; Land Economics/Use; Production Economics; Risk and Uncertainty.

Ano: 2010

URL: http://purl.umn.edu/56412

GUIDELINES FOR WESTERN JOURNAL OF AGRICULTURAL ECONOMICS AUTHORS

LaFrance, Jeffrey T.; Watts, Myles J..

This article explains the current editorial procedures and policies of the Western Journal of Agricultural Economics. The contents should be of interest both to readers and to authors who plan to submit manuscripts to the Journal. The current editorial policy of the Journal is discussed, the review and publication process is explained, and detailed guidelines for the proper preparation of manuscripts for the Journal are presented.

Tipo: Journal Article

Palavras-chave: Teaching/Communication/Extension/Profession.

Ano: 1991

URL: http://purl.umn.edu/32598

U.S. Food and Nutrient Demand and the Effects of Agricultural Policies

An econometric model of annual per capita U.S. food and nutrition demand is developed. The model is a flexible, full rank two Gorman polar form. It is strictly aggregable across income, demographic variables, and variations in micro preference parameters. Parametric conditions for global quasi-concavity of the (quasi-)utility function are derived. The model is implemented with annual time series data on U.S. per capita food consumption for the sample period 1918-1994. A battery of new test statistics are developed for and applied to the following hypotheses: (1) strict exogeneity of income or total expenditures; (2) global symmetry and negative semidefiniteness of the Slutsky substitution matrix; (3) parameter stability in a multivariate, nonlinear...

U.S. Demand for Food and Nutrition in the 20th Century

Palavras-chave: Agricultural and Food Policy; Demand and Price Analysis.

Ano: 1999

URL: http://purl.umn.edu/25007

Beatty, Timothy K.M.; LaFrance, Jeffrey T..

A great deal of research on farm and food policy and consumer choice focuses on the link between food consumption and nutrition. This paper presents and applies a new method to analyze the demand for food and nutrients, and consumer welfare. The foundation for this method is the recent extension of the Gorman class of exactly aggregable demand models to incomplete demand systems. The purposes of this approach are to derive and implement coherent, flexible empirical models of food and nutrient demand, to estimate the model parameters consistently with aggregate data, and to make inferences on the impacts of farm and food policy changes on food and nutrient demand and consumer welfare of those policies. We apply this framework to annual per capita U.S....

Milk Marketing Order Winners and Losers

Palavras-chave: Aggregation; Agricultural policy; Food demand; Gorman Systems of Demands; Nutrition; Demand and Price Analysis; Food Consumption/Nutrition/Food Safety.

Ano: 2005

URL: http://purl.umn.edu/25105

Chouinard, Hayley H.; Davis, David E.; LaFrance, Jeffrey T.; Perloff, Jeffrey M..

Do milk marketing orders affect various demographic groups differently? To answer this question, we use supermarket scanner data to estimate an incomplete demand system for dairy products. Based on these estimates, we simulate substitution effects among dairy products and the welfare impacts of price changes resulting from changes in milk marketing orders for various consumer groups. While we find little difference in own- and cross-price substitution elasticities of demand, the welfare effects of price changes vary substantially across demographic groups, with some losing and others winning from this government program. Families with young children suffer from marketing orders, while wealthier childless couples benefit. Additionally, we find that...

Tipo: Conference Paper or Presentation

Palavras-chave: Consumer/Household Economics.

Ano: 2006

URL: http://purl.umn.edu/21238

AN ECONOMETRIC MODEL OF THE DEMAND FOR FOOD AND NUTRITION

A flexible, full rank two model of food consumption that is globally consistent with economic theory, aggregates across income, demographic variables, and variations in micro demand parameters, and accommodates tradeoffs between tastes and nutrition is derived. The econometric demand model is estimated with per capita U.S. consumption of 21 foods on the time period 1919-1994, excluding the World War II years 1942-1946. An approach for inferring the percentage of nutrients available from individual commodities in the U.S. food supply is derived and implemented empirically on the time period 1949-1995 for the nutrients energy, protein, total fat, carbohydrates, and cholesterol. The two sets of model results are combined to generate time paths for income...

DO INCREASED COMMODITY PRICES LEAD TO MORE OR LESS SOIL DEGRADATION?

Palavras-chave: Aggregation; Demand; Food; Nutrition; Hicksian Compensated Price Elasticities; Demand and Price Analysis; Food Consumption/Nutrition/Food Safety.

Ano: 1999

URL: http://purl.umn.edu/25004

We Should Drink No Wine Before Its Time

In this paper, a dynamic economic model is used to analyze the conflicting impacts of crop increasing/land degrading inputs with those of soil conserving/crop reducing inputs in problems of soil degradation in agriculture. Soil is a renewable resource that is generated naturally at a slow, essentially autonomous rate. Cultivation enhances crop production and degrades the soil, while conservation is unproductive for the crop but improves the soil resource. If the effects of cultivation dominate the effects of conservation in the soil dynamics, an increase in the price of the crop accelerates the rate of soil degradation In the short-run and decreases the long-run stock of the soil resource. On the other hand, if the effects of conservation dominate the...

Tipo: Journal Article

Palavras-chave: Land Economics/Use.

Ano: 1992

URL: http://purl.umn.edu/22478

Goodhue, Rachael E.; LaFrance, Jeffrey T.; Simon, Leo K..

We consider the impact of taxes on the quantity and quality produced of goods whose market values accrue with age. The analysis is motivated by the high and increasing taxation rates in the wine industry across the globe. If society values both quality and quantity as goods, an optimal tax system would never reduce the quality marketed, though it necessarily reduces quantity. Any two-tax system that includes a volumetric sales tax and any one of three other types of tax an ad valorem sales tax, an ad valorem storage tax, or a volumetric storage tax spans the quality/revenue space and can support an optimal tax system. Any tax system that reduces quality relative to the market equilibrium with no taxes could increase tax revenues and reduce the quality...

Milk Marketing Order Winners and Losers

Palavras-chave: Industrial Organization; Public Economics.

Ano: 2004

URL: http://purl.umn.edu/25021

Chouinard, Hayley H.; Davis, David E.; LaFrance, Jeffrey T.; Perloff, Jeffrey M..

Do milk marketing orders affect various demographic groups differently? To answer this question, we use supermarket scanner data to estimate an incomplete demand system for dairy products. We use these estimates to simulate substitution among dairy products and the welfare impacts of price changes resulting from changes in milk marketing orders for various consumer groups. While we find little difference in own- and cross-price substitution elasticities of demand, the welfare effects of price changes vary substantially across demographic groups, with some losing and others winning from this government program.

Generalized Rational Random Errors

Palavras-chave: Demand and Price Analysis; Livestock Production/Industries.

Ano: 2005

URL: http://purl.umn.edu/25098

Theil's theory of rational random errors is sufficient for strict exogeneity of group expenditure in separable demand models. Generalized rational random errors is necessary and sufficient for strict exogeneity of group expenditure. A simple, robust, asymptotically normal t-test of this hypothesis is derived based on the generalized method of moments. An application to per capita annual U.S. food demand in the 20th century strongly rejects exogeneity of food expenditure in a model that in all other respects is highly compatible with the data set and with the implications of economic theory.

THE VALUE OF PROTEIN IN FEED BARLEY FOR BEEF, DAIRY, AND SWINE FEEDING

Palavras-chave: Demand; Generalized method of moments; Rational random errors; Weak separability; Demand and Price Analysis.

Ano: 2002

URL: http://purl.umn.edu/25053

LaFrance, Jeffrey T.; Watts, Myles J..

The impact of the protein content of feed barley on the costs of feeding beef, dairy cattle, and swine in Montana is evaluated. A model of least-cost feed rations is constructed to analyze the marginal value of additional protein content in feed barley. The results indicate that increasing the protein content of feed barley above 12% will not substantially increase the value of barley to feeders. This implies that the establishment and maintenance of a protein premium in the feed barley market would tend to result in lower average prices for feed barley because the feed value/protein relationship is concave and the market would be sustaining costs that the inherent value of the commodity could not support.

Tipo: Journal Article

Palavras-chave: Livestock Production/Industries.

Ano: 1986

URL: http://purl.umn.edu/32540

HOMOGENEITY AND SUPPLY

LaFrance, Jeffrey T.; Pope, Rulon D..

Supply functions in the ubiquitous Gorman class are examined for their homogeneity properties. Homogeneity places surprisingly strong restrictions on functional forms. These forms facilitate testing of aggregability given homogeneity or homogeneity given aggregability or testing both.

INCOMPLETE DEMAND SYSTEMS AND SEMILOGARITHMIC DEMAND MODELS

Palavras-chave: Research Methods/ Statistical Methods.

Ano: 2007

URL: http://purl.umn.edu/6863

The Environmental Impacts of Subsidized Crop Insurance

The methodology of LaFrance and Hanemann for analysing the structure of incomplete demand systems is applied to models that are linear or logarithmic in quantities, prices and/or income. The structure of each model is presented when the implications of consumer choice theory are satisfied. The usefulness of the approach is illustrated. It is shown that considerable prior information is obtained from the theory of consumer choice when it is applied to this set of functional forms for demand equations.

Tipo: Journal Article

Palavras-chave: Demand and Price Analysis.

Ano: 1990

URL: http://purl.umn.edu/22442

LaFrance, Jeffrey T.; Shimshack, Jay P.; Wu, Steven Y..

A partial equilibrium model of stochastic crop production is used to analyze the environmental impacts of popular subsidized crop insurance programs. Land use is unchanged only when an actuarially fair, perfectly separating insurance contract is offered. For the more typical pooling equilibrium contracts, however, land with a minimum quality that is strictly lower than the minimum quality without insurance will be added to production. In such cases, the environment will be adversely effected. If economically marginal land is also environmentally marginal, pooling crop insurance policies disproportionately contribute to the degradation of the environment. Popular subsidies merely exacerbate the problem.

Palavras-chave: Environmental Economics and Policy; Risk and Uncertainty.

Ano: 2001

URL: http://purl.umn.edu/25082

Building Gorman's Nest

LaFrance, Jeffrey T.; Beatty, Timothy K.M.; Pope, Rulon D..

Gorman Engel curves are extended to incomplete systems. The roles of Slutsky symmetry and homogeneity/adding up are isolated in the rank and functional form restrictions for Gorman systems. Symmetry determines the rank condition. The maximum rank is three for incomplete and complete systems. Homogeneity/adding up determines the functional form restrictions in complete systems. There is no restriction on functional form in an incomplete system. Every full rank and minimal deficit reduced rank Gorman system has a representation as a polynomial in a single function of income. This generates a complete taxonomy of indirect preferences for Gorman systems. Using this taxonomy, we develop models of incomplete Gorman systems that nest rank and functional form and...

A MODIFIED PARTIAL ADJUSTMENT MODEL OF AGGREGATE U.S. AGRICULTURAL SUPPLY

Palavras-chave: Aggregation; Functional form; Gorman Engel curves; Incomplete demand systems; Rank; Weak integrability; Demand and Price Analysis; D12; E21.

Ano: 2004

URL: http://purl.umn.edu/25027