Scholarly Works, Agricultural and Applied Economics

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Research articles, presentations, and other scholarship

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Impact of cash settlement on feeder cattle basis
Kenyon, David E.; Bainbridge, Bruce B.; Ernst, Robin (Western Agricultural Economics Association, 1991-07)
The feeder cattle futures contract specifications were changed in 1986 from physical delivery to cash settlement. The Chicago Mercantile Exchange expected this change to reduce basis variability and improve the ability of hedgers to predict basis. This study analyzes the basis for individual lots of feeder cattle before and after cash settlement. Basis equations were estimated by breed, sex, weight, grade, and season. These equations were used to predict basis. The results indicate basis variability was not reduced and hedger ability to forecast basis, in general, was not improved significantly under cash settlement compared to physical delivery.
When flexible forms are asked to flex too much
Driscoll, P. J. (Western Agricultural Economics Association, 1994-07)
Taylor series-based flexible forms cannot be interpreted as Taylor series approximations unless all data used in estimation lie in a region of convergence. When flexible forms lose their Taylor series interpretation, elasticity estimates will be biased. When the flexible form is a translog, Rotterdam, or AIDS model, the region of convergence is shown to be the entire positive orthant. Regions of convergence associated with quadratic, Leontief, and any flexible form that does not employ logged arguments are smaller and may not encompass the entire data set. Implications for production and demand analyses and experimental design are discussed.
System misspecification testing and structural-change in the demand for meats
McGuirk, Anya; Driscoll, Paul; Alwang, Jeffrey R.; Huang, Huilin L. (Western Agricultural Economics Association, 1995-07)
A misspecification testing strategy designed to ensure that the statistical assumptions underlying a system of equations are appropriate is outlined. The system tests take into account information in, and interactions between, all equations in the system and can be used in a wide variety of applications where systems of equations are estimated. The system testing approach is demonstrated by modeling U.S. consumer demand for meats. The example illustrates how the approach can be used to disentangle issues regarding structural change and other forms of model misspecification.
Determinants of food stamp program exits
Mills, Bradford F.; Dorai-Raj, Sundar; Peterson, Everett B.; Alwang, Jeffrey R. (University of Chicago Press, 2001-12)
This article examines factors that influence Food Stamp Program exits and finds that families who leave the Temporary Assistance to Needy Families (TANF) program are also more likely to leave the Food Stamp Program. However, the influence of TANF departure is smaller in states with large TANF caseload declines. The results also suggest that many families leaving the Food Stamp Program are still eligible for benefits. These families may have poor information on food stamps eligibility in the face of TANF departure or may view Food Stamp Program reauthorization procedures as too costly relative to program benefits.
Changes in the well-being of nonmetropolitan single-mother families: a semi-parametric analysis
Mills, Bradford F. (Western Agricultural Economics Association, 2002-12)
In nonmetropolitan areas of the United States, single-mother families contain a majority of children living below the poverty line. Changes between 1992 and 2000 in the economic well-being of nonmetropolitan single-mother families are examined using kernel density estimation and density reweighting methods. The results show that increased educational levels of single mothers and the strengthening of area economic conditions explain much of the observed gains in the economic well-being of this family group. But temporal changes in propensities to work and to be on welfare from 1992 to 2000 have also contributed to observed gains.
Changes in consumption and saving behavior before and after economic shocks: Evidence from Zimbabwe
Ersado, Lire; Alderman, Harold; Alwang, Jeffrey R. (University of Chicago Press, 2003-10)
This study examines the effects of drought and macroeconomic changes on household consumption and savings behavior in Zimbabwe, using two nationally representative cross_sectional data sets that straddle a period of economic volatility. Specifically, the article (1) analyzes changes in consumption and saving behavior before and after economic shocks and (2) investigates the effectiveness of savings as a means of cushioning the impacts of covariate shocks.
The FAST method: estimating unconditional demand elasticities for processed foods in the presence of fixed effects
Bergtold, J.; Akobundu, E.; Peterson, Everett B. (Western Agricultural Economics Association, 2004-08)
This study estimates a set of unconditional own-price and expenditure elasticities across time for 49 processed food categories using scanner data and the FAST multistage demand system with fixed effects across time. Estimated own-price elasticities are generally much larger, in absolute terms, than previous estimates, while our expenditure elasticities are generally much lower. The use of disaggregated product groupings, scanner data, and the estimation of unconditional elasticities likely accounts for these differences. Results of the study suggest providing more disaggregate product-level demand elasticities could aid in the economic analysis of issues relating to industry competitiveness or the impact of public policy.
Effects of tariffs and sanitary barriers on high- and low-value poultry trade
Peterson, Everett B.; Orden, David R. (Western Agricultural Economics Association, 2005-04)
A competitive partial-equilibrium spatial model with heterogeneous goods is constructed to evaluate effects of the removal of tariffs, tariff-rate quotas, and sanitary regulations on world poultry trade. The model distinguishes between "high-value" (mostly white meat) and "low-value" (mostly dark meat) poultry products and simulates the trade flows among eight exporting and importing countries and regions. Removing all barriers simultaneously has a larger impact on trade than removing only tariffs and tariff-rate quotas. Imposition of sanitary barriers against U.S. products by Russia shifts trade flows, but does not have large net impacts on U.S. producers.
Market Strategies for a Tobacco Bio-Pharming Application: The Case of Gaucher’s Disease Treatment
Kostandini, Gentian; Mills, Bradford F. (Virginia Tech, 2005-07)
Small firms developing biotechnology applications often focus on establishing intellectual property rights, which can then be sold to more established firms with existing market chains. This paper explores the expected ‘Buyout’ price and economic surplus changes for an emerging bio-pharming application with transgenic tobacco. The results suggest a ‘Buyout’ price of about $1.75 billion. Yet despite this potentially large payout to the innovating firm, consumers also see significant surplus gains.
Transient Health Shocks and Agricultural Labor Demand in Rice-producing Households in Mali
Larochelle, Catherine; Dalton, Timothy J. (2005-11-01)
SANREM Baseline Survey Questionnaire for Tiraque Bolivia
Alwang, Jeffrey R. (PROINPA and SANREM CRSP, 2007)
This questionnaire was used for the SANREM baseline survey in Tiraque Bolivia during 2007. This survey was enumerated to 400 households in the SANREM focal watershed in order to collect information about the land, cultivation methods, pests, migration patterns, and the diet of the household members.
Contribuciones de ciencias económicas a la investigación agropecuaria
Alwang, Jeffrey R. (2007)
A presentation to general agricultural scientists about the use and abuse of economic analysis.
Determinants of variety choice among potato growers in the Bolivian highlands
Castelhano, M.; Alwang, Jeffrey R.; Botello, Rubén C.; Kuminoff, N. (2008)
The objectives of the study discussed in this presentation are:
Manejo integrado de los recursos naturales para agricultural de pequena escala en la subcuenca del Rio Chimbo-Ecuador: Aprendizajes y ensenanzas
Barrera, Victor H.; Alwang, Jeffrey R.; Cruz, Elena (Quito, Ecuador: Instituto Nacional Autónomo de Investigaciones Agropecuarias (INIAP), 2008)
Book describes SANREM experience in Chimbo, Ecuador.
Dairy market chains in indigenous communities of the Chimbo River Watershed
Weeks, H. A.; Alwang, Jeffrey R. (2008)
The standard farm system in rural Upper Guanujo in the region of the Bolívar Province of Ecuador includes dairy cattle as one of the primary sources of income for residents in this area. Though per capita consumption of dairy products among Ecuadorians is the highest of the countries in the Andean Region of South America, widespread production for the domestic retail market is lacking in many areas of the country.
Adaptive watershed management in the South American Highlands: Learning and teaching on the fly
Alwang, Jeffrey R. (2008)
The purpose of this poster is to describe an adaptive watershed management process in Chimbo, Ecuador. We show the conceptual framework and our empirical strategy. We present results showing that ethnic and agro-ecologic diversity in the watershed mean that technical interventions must be tailored to local conditions and the process of moving knowledge to action is highly context specific. Low incomes and high vulnerability of human populations mean that livelihood alternatives must be identified and incorporated into the adaptive plan.
Manejo integrado de los recursos naturales para agricultura de pequena escala en la subcuenca del rio Chimbo-Ecuador: Aprendizajes y ensenanzas
Barrera, Victor H.; Alwang, Jeffrey R.; Cruz, Elena (Blacksburg, VA: SANREM CRSP, Office of International Research, Education, and Development, Virginia Tech, 2008)
Este reporte discubri condiciones agro-ecologias y sociales en la subcuenca de la rio Chimbo. Incluyendo un decripcion de la subcuenca, medios de la vida, acceso al activo tierra y agua, problemas ambientales, relaciones genero, y limitaciones para la estrategias de vida con un proceso de manejo adaptivo.
Adaptive watershed management in Tiraque, Bolivia
Botello, Rubén C.; Figueroa, I.; Amaya, Nadezda; Vargas, O.; Saavedra, Ana Karina; Alwang, Jeffrey R. (2008)
Poster outlining the project's objectives at the Bolivia site. The overall objectives are: to enhance and support the local capacity to raise policies and interventions to increase incomes, improve social conditions and protect environment in Guaranda, Ecuador and Tiraque, Bolivia. The project's primary objectives are: 1) to understand the economic, social, political and environmental conditions and their determinants in Chimbo, Ecuador and Tiraque, Bolivia, 2) to generate and validate sustainable technological alternatives to improve production systems and increase incomes while being environmentally friendly, 3) to create a system to assess alternative actions policies and intervention impacts in the income creating and the social and environmental conditions, 4) to build a local capacity to assess alternative policies, make and fulfill decisions and strengthen the social capital.
Livelihood strategies of farmers in Bolivar, Ecuador: Assets, livelihood choice and well-being in rural households
Andrade, R.; Alwang, Jeffrey R.; Norton, George W.; Barrera, Victor H. (2008)
The objective of this study is to identify successful livelihood strategies and analyze factors affecting adoption of such strategies:
Watershed-based natural resource management in small-scale agriculture: Sloped areas of the Andean Region
Alwang, Jeffrey R. (2008)
This presentation reports on the work of the SANREM CRSP long term research activity 3 (LTRA-3), "Watershed-based natural resource management (NRM) for small-scale agriculture."

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