This paper discuss the relationship between traditional parametric tests for market integration such as causuality tests and tests of the Law of One Price and cointegration tests for market integration. We show that cointegration tests are a natural extension of the traditional methods taking...

This study provides a dynamic mathematical treatment of price determination under bilateral monopoly. The results are: a) a quantitiative solution for the equilibrium price; b) equality of profits of the buyer and seller; c) dynamically stable equilibrium price; and d) the bargaining process...

This paper argues that the subjective expected utility (SEU) hypothesis has serious limitations in both positive and normative analysis. In addition to experimental evidence, we discuss examples where alternatives to the SEU model provide a richer framework for the study problems of choice under...

This article is the further development and refinement of quarterly models of U.S. field crops, drawing upon the theory of pricing, production, and storage under uncertainty. The decisions of storage industry and farm production are taken into account. The findings of this research are both...

Resource endowments, modeled as quality indices, are placed into a dynamic production model to determine resource use adjustments to meet sustainability and production input usage changes when resource quality fluctuates. Impacts of sustainability are identified and the time path of resource...

An econometric model of the U.S. corn sector is used to estimate the welfare effects of the Uruguay Round Agreement. Trade liberalization also leads to changes in input use that can affect the environment. The gains from trade liberalization are adjusted for the environmental effects caused by...

Should econometricians always incorporate economic theory in their models or only when unrestricted estimators are found to violate an inviolable theory? Using Monte Carlo experiments, we find that econometricians should use economic theory to the fullest extent possible. To paraphrase Leamer's...

Integer programming models were used to examine optimal monthly feeding strategies and costs for March and May calving alternatives. Body condition scores were allowed to fluctuate throughout the year except for calving and breeding periods. The May calving strategy decreased annual feeding...

This paper develops and implements an import allocation model based on Theil's system-wide approach to demand and tests the assumption of blockwise dependence and uniform substitutability among different sources and types of wheat imported by Japan.