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| Registros recuperados: 12 | |
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| Bekkerman, Anton; Smith, Vincent H.; Watts, Myles J.. |
| The Supplemental Revenue Assistance Payments (SURE) program, introduced in the 2008 Farm Bill, provides disaster aid payments to producers in counties eligible for disaster payments and individual producers with crop production losses that exceed 50% of their expected yields. We show that the program’s "rules of the game" create moral hazard and adverse selection incentives. Then, we empirically analyze possible moral hazard and adverse selection behavior in response to the SURE program by corn, soybean, and wheat producers. Results suggest that recent increases in crop insurance participation may be due to increased moral hazard and adverse selection incentives. |
| Tipo: Presentation |
Palavras-chave: Risk and Uncertainty. |
| Ano: 2012 |
URL: http://purl.umn.edu/124178 |
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| Brown, James A.; Bekkerman, Anton; Atwood, Joseph A.; Watts, Myles J.. |
| In the late 2000s, corn prices rose rapidly and were closely followed by prices of other major agricultural commodities. A widespread explanation for these market changes is an increased demand for corn in the production of ethanol, prompted by the introduction of programs intended to encourage biofuels production in the United States. In response to political pressures, the U.S. Congress considered amending three ethanol policies. It is likely that the interaction among the three policies can exacerbate these distortions. This study seeks to model the effects of simultaneous policy changes on multiple sectors of the blended gasoline marketing channel. |
| Tipo: Presentation |
Palavras-chave: Agricultural and Food Policy. |
| Ano: 2012 |
URL: http://purl.umn.edu/124177 |
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| Bekkerman, Anton; Smith, Vincent H.; Watts, Myles J.. |
| The Supplemental Revenue Assistance Payments (SURE) program, enacted under the 2008 Farm Bill, is intended to provide indemnity payments to producers whose crop losses exceed 50% of their historical average yields. However, indemnification does not require that the farm is located in a region designated a disaster relief area -- a provision that can create significant moral hazard incentives. This study is the first to perform an empirical analysis of possible moral hazard behavior in corn, soybean, and wheat markets in response to the SURE program. Results suggest that an increase in crop insurance demand after the enactment of SURE may be due to the program's moral hazard incentives. |
| Tipo: Conference Paper or Presentation |
Palavras-chave: Agricultural and Food Policy; Farm Management. |
| Ano: 2010 |
URL: http://purl.umn.edu/61154 |
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| 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 |
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| Watts, Myles J.; Helmers, Glenn A.. |
| This article addresses (1) the differences in machinery cost estimating techniques, particularly for depreciation and opportunity cost, and (2) the necessary modifications in cost estimating techniques to account for the changing monetary base under inflation. The conditions under which capital budgeting and traditional budgeting differ are examined on a before tax and after tax basis, with and without inflation. The variations in cost estimates depending upon techniques, and with and without inflation, are compared. |
| Tipo: Journal Article |
Palavras-chave: Agricultural Finance. |
| Ano: 1981 |
URL: http://purl.umn.edu/32573 |
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| Atwood, Joseph A.; Held, Larry J.; Helmers, Glenn A.; Watts, Myles J.. |
| Selected risk programming solutions (i.e., profit maximization, Target-MOTAD, and MOTAD) are tested in an economic environment outside the data set from which they were developed. Specifically, solutions are derived from either a longer 10-year (1965-74) or shorter 6-year estimation period (1969-74), and then, they are tested for consistent risk-income characteristics over a later 10-year period (1975-84). Risk solutions estimated from earlier periods perform well in the later test period in spite of different economic conditions between time periods. However, favorable performance may be related to the specific example used in this analysis. Further testing for other farm situations is needed before general conclusions can be reached. |
| Tipo: Journal Article |
Palavras-chave: Risk and Uncertainty. |
| Ano: 1986 |
URL: http://purl.umn.edu/29775 |
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| Watts, Myles J.; Shimshack, Jay P.; LaFrance, Jeffrey T.. |
| Livestock grazing on public lands continues to be a source of intense conflict and debate. We analyze this problem using a dynamic game. Low grazing fees let ranchers capture more rent from grazing. This increases the incentive to comply with federally mandated regulations. Optimal grazing contracts therefore include grazing fees that are lower than competitive private rates. The optimal policy also includes random monitoring to prevent strategic learning by cheating ranchers and avoid wasteful efforts to disguise noncompliant behavior. Finally, an optimal policy includes a penalty for cheating beyond terminating the lease. This penalty must be large enough that the rancher who would profit the most from cheating experiences a negative expected net return. |
| Tipo: Working or Discussion Paper |
Palavras-chave: Renewable resources; Public lands grazing policy; Optimal contracts; Land Economics/Use. |
| Ano: 2006 |
URL: http://purl.umn.edu/7151 |
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| Atwood, Joseph A.; Watts, Myles J.; Helmers, Glenn A.; Held, Larry J.. |
| A recent survey indicated that many procedures view risk in a safety-first context. Traditional methods used to impose safety-first constraints in optimization models have often been difficult to implement. This is particularly true when endogenous decisions affect the distribution of the chance-constrained random variable. This paper presents a method whereby probabilistic constraints can be easily imposed upon finitely discrete random variables. The procedure uses a linear version of the lower partial moment stochastic inequality. The resulting solutions are somewhat conservative but are less so than the results using the previously published mean income-absolute deviation stochastic inequality. |
| Tipo: Journal Article |
Palavras-chave: Production Economics; Research Methods/ Statistical Methods. |
| Ano: 1988 |
URL: http://purl.umn.edu/32152 |
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| Beattie, Bruce R.; Watts, Myles J.. |
| Contrary to recent commentary, reliance on individual faculty initiative and learned societies in setting the academic agenda has greater promise for contributing to the land grant mission than more administratively driven and dominated systems. Learned societies have the advantage in evaluating disciplinary content and are thereby the appropriate evaluators of quality. A distinguishing characteristic of all university professors should be a continuing commitment to active participation in research in support of their principle function, teaching, be their students on-campus undergraduate or graduates, off-campus clientele, or professional peers. The popular notion that all, or even most recognized peer-review journals are oriented mainly to disciplinary... |
| Tipo: Journal Article |
Palavras-chave: Teaching/Communication/Extension/Profession. |
| Ano: 1987 |
URL: http://purl.umn.edu/32238 |
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| Registros recuperados: 12 | |
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