This paper studies the extent to which decoupled income support measures in agriculture can have production implications both at the extensive and intensive margins. We develop a theoretical framework that analyzes production responses of agricultural producers to apparently decoupled payments,...

The crop insurance purchase decision for a group of Kansas farmers is analyzed using data from 1990sa period that experienced many changes in the federal crop insurance program. Farm-level data are used. Results indicate a reduction in the elasticity of the demand for crop insurance with respect...

The present study uses local maximum likelihood (LML) methods recently proposed by Kumbhakar et al. (2007) to assess the technical efficiency of arable crop Kansas farms. LML techniques overcome the most relevant limitations associated to mainstream parametric stochastic frontier models. Results...

This paper assesses the impacts of decoupled government transfers on production decisions of a sample of Kansas farms observed from 1996 to 2001. Our model allows for risk, risk attitudes and the intertemporal investment decisions. We also allow for different adjustments of the decision...

We use a smooth transition vector error correction model to assess price relationships within the US ethanol industry. Daily ethanol, corn and oil futures prices observed from mid-2005 to mid-2007 are used in the analysis. Results indicate the existence of an equilibrium relationship between...

The objective of this research is to determine the contribution of recent agricultural policy reforms in the E.U. on the use of crop protection products. Specifically, we concentrate on the 1992 CAP reforms. Our theoretical model adopts the multi-output generalization of the...

In this paper we consider two general approaches to the selection of thresholds in multivariate threshold models. The first criteria ignores the cross equation correlation while the latter explicitly accounts for it. We focus on how model selection may be influenced by these alternative...

Asymmetric threshold error correction models are used to analyze price relationships and patterns of transmission among farm and retail markets for a variety of dairy products in Spain. Our empirical analysis is conducted using both weekly and monthly price data. Our results suggest that the...

We use a large sample of Kansas Farm Management Association farms for eight different crop/practice combinations (dryland and irrigated corn, sorghum, soybeans, and wheat) for 1994 through 2006 to evaluate the determinants of relative yield performance and explore the ability of financial...

While in theory decoupled payments do not distort production decisions, in practice there are several potential coupling mechanisms for these payments. We use farm-level data from Kansas to revisit the issue of how (de)coupled are these supposedly “decoupled” payments by focusing on how they...