This paper develops the formulation of a spatial equilibrium model with intermediate products. The presence of intermediate products brings a better representation of the real world, accounting for the technological relationships among commodities in the several stages of production. Instead of...

Static travel cost models have been only partially successful in modeling the sequential aspects of a recreation decision like the decision to fish. In this paper we describe a dynamic structural model of the decision to visit a recreation site. The model is best described as a dynamic...

U.S. dairy companies and cooperatives have long been minor players in international dairy markets, exporting the equivalent of only 2% to 4% of domestic milk production. There are good reasons for this behavior. Sales opportunities in the large domestic market and prices offered by the USDA...

The implications of sunk costs for many key questions in agricultural economics have yet to be explored. This paper uses a dynamic model of investment behavior to explore how sunk costs can shape market outcomes in ways that might not match predictions of standard competitive models. Applying...

Nonparametric methods are used to measure the impacts of public research expenditures on Australian broadacre agriculture over the 1953-94 period. The data and methods used were unable to recover separate impacts due to extension under several alternative specifications. Preliminary results...

There are three general classes of environmental implications from agriculture: (1) amenity implications; (2) habitat implications; and (3) ecological implications. Environmental "benefits" or "costs" from agriculture require a prior specification of the norm against which the status quo is to...

After developing a conceptual apparatus, this paper econometrically explores the basis and bias of agrarian growth in contemporary Paraguay, a country where increasing land scarcity and rural unrest have occurred in the midst of rapid export growth. By taking apart the microeconomics of the...

This paper proposes a new way to evaluate the role of profitability and risk in the dairy industry, one that incorporates the effects of uncertainty about future returns when investments are irreversible, or sunk. The usefulness of this new approach is demonstrated by the light it sheds on...

The temporal relationship between Chicago corn and soybean cash prices, nearby futures prices, and interest rates is examined using daily 1980-1989 data. Johansen cointegration tests suggest joint movement of the three series over the data period considered. In addition, analyses of individual...