This essay develops a new method to diagnose inconsistency in dichotomous choice contingent valuation with follow-up questions: in particular, downward bias in the mean WTP. It is shown that the previous methods aimed to explain this inconsistency in responses have ignored statistical...

The functional specification of mean-standard deviation approach is examined under location and scale parameter condition. Firstly, the full set of restrictions imposed on the mean-standard deviation function under the location and scale parameter condition are made clear. Secondly, the...

This paper describes two problems when testing the efficiency of intra-household allocations. First, using Monte Carlo simulations I show that the test proposed for efficiency in consumption has a high type-II error, leading to a false acceptance of the hypothesis. Second, I show it is possible...

The Induced Innovation Hypothesis (IIH) is tested for Western US agriculture by means of a cointegration test. An ECM model is used to separate the short-run and long-run effects of relative price changes. A difference in the elasticities of factor substitution along the isoquant curve and the...

Consistent aggregation of production data across commodities and states was tested using Lewbel's generalized composite commodity theorem (GCCT). This was the first empirical GCCT test for consistent geographic aggregation and was applied to two groups of states. Consistent commodity aggregation...

The sensitivity of WTP is tested in terms of the present value and the implied discount rates are derived by varying the length of benefit and the temporal payment schedules. Results show that holding the length of the project constant, the present value of willingness to pay does not vary...

We derive a (quadratic) inverse demand system (IQUAIDS), that generalizes the (almost ideal) inverse demand system. We discuss how the assumptions of separability and concavity can be simultaneously accommodated within the model, thus giving a (locally) separable and concave quadratic demand...

This paper analyzes the sequential decision to adopt two site-specific technologies, soil testing and variable rate technology (VRT), and their impact on nitrogen productivity in four Midwestern states. The results indicate that while farm location was a key variable influencing the adoption of...

A nonparametric approach to short-run production analysis from a cost and profit perspectives is developed in the context of an adjustment-cost model. The adjustment-cost hypothesis is incorporated in the theoretical framework in the form of the properties of the firm's technology with respect...

This paper estimates an Almost Ideal Supply System using aggregate U.S. agricultural data. Share equations derived from an indirect production function yield elasticities that are consistent with production theory. A nested test comparing the Almost Ideal Supply System to the Translog Production...