Bayesian Hierarchical Models for Measuring Varietal Improvement in Tobacco Yield and Quality

We measure the economic impact of varietal improvement and technological change in flue-cured tobacco across quantity (e.g., yield) and quality dimensions under a voluntary quality constraint. Since 1961, flue-cured tobacco breeders in the United States have been subject to the Minimum Standards Program that sets limits on acceptable quality characteristics for commercial tobacco varieties. We implement a Bayesian hierarchical model to measure the contribution of breeding efforts to changes in tobacco yields and quality between 1954 and 2017. The Bayesian model addresses limited data for varieties in the trials and allows easy generation of the necessary parameters of economic interest.