Nothing Special   »   [go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/ags/puaewp/45969.html
   My bibliography  Save this paper

Yield Response To Prices: Implications For Policy Modeling

Author

Listed:
  • Keeney, Roman
  • Hertel, Thomas W.
Abstract
We examine the determinants of own-price output supply response in policy models, focusing primarily on the OECD-PEM equilibrium displacement model. Reviewing expert assessments and econometric literature estimates we find that there is evidence to both support and challenge the relatively high supply response of a model like the OECD-PEM. We also consider possible avenues of reconciliation between evidence that supports and challenges the assumed supply response in the OECD-PEM model. Our analysis of supply response in the OECD-PEM case and from reviewing literature leads us to recommend that future econometric investigation be focused on the role of farm household owned resource mobility as it contributes to agricultural supply response.

Suggested Citation

  • Keeney, Roman & Hertel, Thomas W., 2008. "Yield Response To Prices: Implications For Policy Modeling," Working papers 45969, Purdue University, Department of Agricultural Economics.
    • Handle: RePEc:ags:puaewp:45969
    DOI: 10.22004/ag.econ.45969
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/45969/files/08-13.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.45969?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Foster, William E. & Babcock, Bruce A., 1993. "Commodity Policy, Price Incentives, and the Growth in Per-Acre Yields," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 25(1), pages 253-265, July.
    2. Mushtaq, Khalid & Dawson, P.J., 2003. "Yield Response In Pakistan Agriculture: A Cointegration Approach," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25931, International Association of Agricultural Economists.
    3. Wu, JunJie & Adams, Richard M., 2002. "Micro Versus Macro Acreage Response Models: Does Site-Specific Information Matter?," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 27(1), pages 1-21, July.
    4. Foster, Kenneth A. & Mwanaumo, Anthony, 1995. "Estimation of dynamic maize supply response in Zambia," Agricultural Economics, Blackwell, vol. 12(1), pages 99-107, April.
    5. Torre Ugarte, Daniel de la & Sanford, Scott & Skinner, Robert A. & Westcott, Paul C. & Lin, William W., 2000. "Supply Response Under The 1996 Farm Act And Implications For The U.S. Field Crops Sector," Technical Bulletins 33568, United States Department of Agriculture, Economic Research Service.
    6. Lars Gårn Hansen, 2004. "Nitrogen Fertilizer Demand from Danish Crop Farms: Regulatory Implications of Heterogeneity," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 52(3), pages 313-331, November.
    7. Ruttan, Vernon W., 1987. "Induced innovation and agricultural development," Food Policy, Elsevier, vol. 12(3), pages 196-216, August.
    8. Guyomard, Herve & Baudry, Marc & Carpentier, Alain, 1996. "Estimating Crop Supply Response in the Presence of Farm Programmes: Application to the CAP," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 23(4), pages 401-420.
    9. Urcola, Hernan A. & Schnitkey, Gary D. & Irwin, Scott H. & Sherrick, Bruce J., 2004. "Testing for Yield Persistency: Is It Skill or is It Luck?," 2004 Annual meeting, August 1-4, Denver, CO 19991, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    10. Diebold, Francis X. & Lamb, Russell L., 1997. "Why are estimates of agricultural supply response so variable?," Journal of Econometrics, Elsevier, vol. 76(1-2), pages 357-373.
    11. Spitze, R.G.F., 1983. "Series E, Agricultural Economics," Illinois Agricultural Economics Staff Paper 244634, University of Illinois at Urbana-Champaign, Department of Agricultural and Consumer Economics.
    12. Tweeten, Luther G & Quance, C Leroy, 1969. "Positivistic Measures of Aggregate Supply Elasticities: Some New Approaches," American Economic Review, American Economic Association, vol. 59(2), pages 175-183, May.
    13. Miner, Alan G., 1981. "The Contribution Of Technology To Soybean Yields In Minnesota," Staff Papers 13497, University of Minnesota, Department of Applied Economics.
    14. Elwin G. Smith & Ross H. McKenzie & Cynthia A. Grant, 2003. "Optimal Input Use When Inputs Affect Price and Yield," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 51(1), pages 1-13, March.
    15. Kenneth M. Menz & Philip Pardey, 1983. "Technology and U.S. Corn Yields: Plateaus and Price Responsiveness," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 65(3), pages 558-562.
    16. Griffiths, William & Thomson, Graeme & Coelli, Tim, 1995. "Predicting Output From Seemingly Unrelated Area And Yield Equations," 1995 Conference (39th), February 14-16, 1995, Perth, Australia 170821, Australian Agricultural and Resource Economics Society.
    17. Luther G. Tweeten & C. Leroy Quance, 1969. "Positivistic Measures of Aggregate Supply Elasticities: Some New Approaches," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 51(2), pages 342-352.
    18. Thomas W. Hertel, 1989. "Negotiating Reductions in Agricultural Support: Implications of Technology and Factor Mobility," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 71(3), pages 559-573.
    19. Choi, Jung-Sup & Helmberger, Peter G., 1993. "How Sensitive Are Crop Yields To Price Changes And Farm Programs?," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 25(1), pages 1-8, July.
    20. Thomas W. Hertel & Kyle Stiegert & Harry Vroomen, 1996. "Nitrogen-Land Substitution in Corn Production: A Reconciliation of Aggregate and Firm-Level Evidence," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(1), pages 30-40.
    21. Schiff, Maurice & Montenegro, Claudio E, 1997. "Aggregate Agricultural Supply Response in Developing Countries: A Survey of Selected Issues," Economic Development and Cultural Change, University of Chicago Press, vol. 45(2), pages 393-410, January.
    22. Andrew P. Barkley & Lori L. Porter, 1996. "The Determinants of Wheat Variety Selection in Kansas, 1974 to 1993," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(1), pages 202-211.
    23. Willis L. Peterson, 1979. "International Farm Prices and the Social Cost of Cheap Food Policies," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 61(1), pages 12-21.
    24. Robert W. Herdt, 1970. "A Disaggregate Approach to Aggregate Supply," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 52(4), pages 512-520.
    25. Askari, Hossein & Cummings, John Thomas, 1977. "Estimating Agricultural Supply Response with the Nerlove Model: A Survey," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 18(2), pages 257-292, June.
    26. B. J. Morzuch & R. D. Weaver & P. G. Helmberger, 1980. "Wheat Acreage Supply Response under Changing Farm Programs," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 62(1), pages 29-37.
    27. Rao, J. Mohan, 1989. "Agricultural supply response: A survey," Agricultural Economics, Blackwell, vol. 3(1), pages 1-22, March.
    28. Love, H. Alan & Foster, William E., 1990. "Commodity Program Slippage Rates For Corn And Wheat," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 15(2), pages 1-10, December.
    29. Jon A. Brandt & John R. Kruse & Jackie Todd, 1992. "Supply, Demand, and Effects of Alternative Policies on the U.S. Oats Industry," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(2), pages 318-328.
    30. Arnade, Carlos Anthony & Kelch, David R. & Leetmaa, Susan E., 2002. "Supply Response In France, Germany, And The Uk: Technology And Price," 2002 Annual meeting, July 28-31, Long Beach, CA 19702, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    31. Goodwin, Barry K. & Mishra, Ashok K., 2002. "An Empirical Evaluation Of Yield Performance And Cross-Crop Yield Correlation," 2002 Annual Meeting, July 28-31, 2002, Long Beach, California 36550, Western Agricultural Economics Association.
    32. Daberkow, Stan G. & McBride, William D., 2004. "Corn Producers´ Response To The 2001 Nitrogen Fertilizer Price Increase," 2004 Annual meeting, August 1-4, Denver, CO 20271, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    33. Edgar A. Lanzer & Quirino Paris, 1981. "A New Analytical Framework for the Fertilization Problem," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 63(1), pages 93-103.
    34. Lopez, Ramon E., 1984. "Estimating labor supply and production decisions of self-employed farm producers," European Economic Review, Elsevier, vol. 24(1), pages 61-82.
    35. J. Mohan Rao, 1989. "Agricultural Supply Response: A Survey," Agricultural Economics, International Association of Agricultural Economists, vol. 3(1), pages 1-22, March.
    36. Choi, Jung-Sup & Helmberger, Peter G., 1993. "How Sensitive are Crop Yields to Price Changes and Farm Programs?," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 25(1), pages 237-244, July.
    37. Hansen, Lars Gårn, 2004. "Nitrogen Fertilizer Demand from Danish Crop Farms - Regulatory Implications of Farm Heterogeneity," MPRA Paper 48366, University Library of Munich, Germany.
    38. Peterson, Willis L., 1991. "Relation Between Crop Yields And Estimated Returns To Scale And Returns To Research," Staff Papers 13430, University of Minnesota, Department of Applied Economics.
    39. Bullock, David S. & Lowenberg-DeBoer, Jess & Swinton, Scott M., 2002. "Adding value to spatially managed inputs by understanding site-specific yield response," Agricultural Economics, Blackwell, vol. 27(3), pages 233-245, November.
    40. Lyons, David C. & Thompson, Robert L., 1981. "The Effect of Distortions in Relative Prices on Corn Productivity and Exports: A Cross-Country Study," Journal of Rural Development/Nongchon-Gyeongje, Korea Rural Economic Institute, vol. 4(1), June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Thompson, Wyatt & Dewbre, Joe & Pieralli, Simone & Schroeder, Kateryna & Pérez Domínguez, Ignacio & Westhoff, Patrick, 2019. "Long-term crop productivity response and its interaction with cereal markets and energy prices," Food Policy, Elsevier, vol. 84(C), pages 1-9.
    2. Burkhart, Christopher S. & Jha, Manoj K., 2012. "Site-Specific Simulation of Nutrient Control Policies: Integrating Economic and Water Quality Effects," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 37(1), pages 1-14, April.
    3. Ayinde, Opeyemi Eyitayo & Bessler, David Arnold & Oni, Femi Emmanuel, 2017. "Analysis Of Supply Response And Price Risk On Rice Production In Nigeria," Journal of Agribusiness and Rural Development, University of Life Sciences, Poznan, Poland, vol. 43(1), March.
    4. Wyatt Thompson & Joe Dewbre & Patrick Westfhoff & Kateryna Schroeder & Simone Pieralli & Ignacio Perez Dominguez, 2017. "Introducing medium-and long-term productivity responses in Aglink-Cosimo," JRC Research Reports JRC105738, Joint Research Centre.
    5. repec:ags:jrapmc:122307 is not listed on IDEAS

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Roman Keeney & Thomas W. Hertel, 2008. "U.S. Market Potential For Dried Distillers Grain With Solubles," Working Papers 08-13, Purdue University, College of Agriculture, Department of Agricultural Economics.
    2. Macours, Karen & Swinnen, Johan F. M., 2000. "Causes of Output Decline in Economic Transition: The Case of Central and Eastern European Agriculture," Journal of Comparative Economics, Elsevier, vol. 28(1), pages 172-206, March.
    3. Mamingi, Nlandu, 1997. "The impact of prices and macroeconomic policies on agricultural supply: a synthesis of available results," Agricultural Economics, Blackwell, vol. 16(1), pages 17-34, March.
    4. Donato, Romano & Carraro, Alessandro, 2015. "Modelling Acreage, Production and Yield Supply Response to Domestic Price Volatility," 2015 Fourth Congress, June 11-12, 2015, Ancona, Italy 207278, Italian Association of Agricultural and Applied Economics (AIEAA).
    5. Jouf, C. & Lawson, L.A., 2022. "European farmers’ responses to higher commodity prices: Cropland expansion or forestlands preservation?," Ecological Economics, Elsevier, vol. 191(C).
    6. Chouaib Jouf & Laté Lawson, 2021. "European farmers’ responses to higher commodity prices: cropland expansion or forestlands preservation?," EconomiX Working Papers 2021-10, University of Paris Nanterre, EconomiX.
    7. Thomas, Alban & Chakir, Raja, 2020. "Unintended consequences of environmental policies: the case of set-aside and agricultural intensification," TSE Working Papers 20-1066, Toulouse School of Economics (TSE).
    8. Zulfiqar, Farhad, 2010. "Estimation of Wheat Yield Response under different Economic, Location and Climatic Conditions in Punjab," MPRA Paper 26503, University Library of Munich, Germany.
    9. Ball, V. Eldon & Moss, Charles B. & Erickson, Kenneth W. & Nehring, Richard F., 2003. "Modeling Supply Response In A Multiproduct Framework Revisited: The Nexus Of Empirics And Economics," 2003 Annual meeting, July 27-30, Montreal, Canada 21981, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    10. Carriquiry, Miguel & Elobeid, Amani & Goodrich, Ryan, 2016. "Comparing the trends and strength of determinants to deforestation in the Brazilian Amazon in consideration of biofuel policies in Brazil and the United States," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235888, Agricultural and Applied Economics Association.
    11. Wiebelt, Manfred & Herrmann, Roland & Schenck, Patricia & Thiele, Rainer, 1992. "Discrimination against agriculture in developing countries?," Open Access Publications from Kiel Institute for the World Economy 458, Kiel Institute for the World Economy (IfW Kiel).
    12. Catherine Benjamin & Magalie Houée Bigot, 2006. "The impact on yields of arable crops of moving from price support to area payements: A Study of the 1992 CAP Reform: n° 423," Post-Print hal-01931561, HAL.
    13. Thompson, Wyatt & Dewbre, Joe & Pieralli, Simone & Schroeder, Kateryna & Pérez Domínguez, Ignacio & Westhoff, Patrick, 2019. "Long-term crop productivity response and its interaction with cereal markets and energy prices," Food Policy, Elsevier, vol. 84(C), pages 1-9.
    14. Surajit Deb, 2003. "Terms of Trade and Supply Response of Indian Agriculture: Analysis in Cointegration Framework," Working papers 115, Centre for Development Economics, Delhi School of Economics.
    15. Miguel Carriquiry & Amani Elobeid & Jerome Dumortier & Ryan Goodrich, 2020. "Incorporating Sub‐National Brazilian Agricultural Production and Land‐Use into U.S. Biofuel Policy Evaluation," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 42(3), pages 497-523, September.
    16. Czyżewski Andrzej & Staniszewski Jakub, 2015. "Changes in the production factor’s structures in agriculture in the light of price adjustments. A case study of selected EU countries," Management, Sciendo, vol. 19(2), pages 136-151, December.
    17. Kanlaya J. Barr & Bruce A. Babcock & Miguel A. Carriquiry & Andre M. Nassar & Leila Harfuch, 2011. "Agricultural Land Elasticities in the United States and Brazil," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 33(3), pages 449-462.
    18. Christophe Gouel, 2013. "Rules versus Discretion in Food Storage Policies," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 95(4), pages 1029-1044.
    19. Liang, Yan & Miller, J. Corey & Harri, Ardian & Coble, Keith H., 2011. "Crop Supply Response under Risk: Impacts of Emerging Issues on Southeastern U.S. Agriculture," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 43(2), pages 1-14, May.
    20. Magrini, Emiliano & Morales-Opazo, Cristian & Balie, Jean, 2014. "Supply response along the value chain in selected SSA countries: the case of grains," 2014: Food, Resources and Conflict, December 7-9, 2014. San Diego, California 197193, International Agricultural Trade Research Consortium.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:puaewp:45969. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/dapurus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.