IDEAS home Printed from https://ideas.repec.org/a/ags/joaaec/15270.html
   My bibliography  Save this article

Rational Expectations Estimation Of Georgia Soybean Acreage Response

Author

Listed:
  • Ahouissoussi, Nicolas B.C.
  • McIntosh, Christopher S.
  • Wetzstein, Michael E.

Abstract

The general method of moments procedure is used for estimating a soybean acreage response function assuming the producers hold rational expectations. Results indicate that soybean, corn, and wheat futures prices, lagged acreage, and government programs are significant factors for determining soybean plantings. Implications of the results are that crop acreage selection by Georgia producers is not very responsive to demand shocks. Thus, producers in other regions are more likely to absorb impacts from these shocks on crop acreage selection.

Suggested Citation

  • Ahouissoussi, Nicolas B.C. & McIntosh, Christopher S. & Wetzstein, Michael E., 1995. "Rational Expectations Estimation Of Georgia Soybean Acreage Response," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 27(2), pages 1-10, December.
    • Handle: RePEc:ags:joaaec:15270
    DOI: 10.22004/ag.econ.15270
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/15270/files/27020500.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.15270?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
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Hansen, Lars Peter & Sargent, Thomas J., 1982. "Instrumental variables procedures for estimating linear rational expectations models," Journal of Monetary Economics, Elsevier, vol. 9(3), pages 263-296.
    2. Bruce L. Gardner, 1976. "Futures Prices in Supply Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 58(1), pages 81-84.
    3. Marc Nerlove, 1958. "Adaptive Expectations and Cobweb Phenomena," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 72(2), pages 227-240.
    4. Shapiro, B.I. & Brorsen, B.Wade & Doster, D. Howard, 1992. "Adoption of Double-Cropping Soybeans and Wheat," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 24(2), pages 33-40, December.
    5. McIntosh, Christopher S. & Williams, Albert A., 1992. "Multiproduct Production Choices And Pesticide Regulation In Georgia," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 24(1), pages 135-144, July.
    6. Marc Nerlove, 1956. "Estimates of the Elasticities of Supply of Selected Agricultural Commodities," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 38(2), pages 496-509.
    7. Penn, J. B. & Irwin, George D., 1971. "A Simultaneous Equation Approach to Production Response: Delta Region," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 3(1), pages 115-121, December.
    8. Shumway, C. Richard & Chang, A. Anne, 1980. "Supply Response Of Texas Field Crops: An Evaluation Of The Cet Linear Supply Model," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 5(2), pages 1-16, December.
    9. Duffy, Patricia A. & Richardson, James W. & Wohlgenant, Michael K., 1987. "Regional Cotton Acreage Response," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 19(1), pages 1-11, July.
    10. Marra, Michele C. & Carlson, Gerald A., 1986. "Double-Cropping Wheat and Soybeans in the Southeast," Agricultural Economic Reports 308006, United States Department of Agriculture, Economic Research Service.
    11. Arnade, Carlos A. & Davison, Cecil W., 1989. "Testing for Aggregation and Simultaneous Bias in U.S. Soybean Export Equations," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 21(2), pages 129-137, December.
    12. Cho, Gyu D., 1992. "Estimation of a Wheat Acreage Response Function for Kansas," Staff Papers 118174, Kansas State University, Department of Agricultural Economics.
    13. Penn, J.B. & Irwin, George D., 1971. "A Simultaneous Equation Approach To Production Response: Delta Region," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 3(1), pages 1-7, December.
    14. C. Richard Shumway, 1983. "Supply, Demand, and Technology in a Multiproduct Industry: Texas Field Crops," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 65(4), pages 748-760.
    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. Smith, Elwin G. & Young, Douglas L., 2000. "Cropping Diversity And Farm Programs," 2000 Annual Meeting, June 29-July 1, 2000, Vancouver, British Columbia 36505, Western Agricultural Economics Association.
    2. Elwin G. Smith & Douglas L. Young, 2003. "Cropping Diversity along the U.S.-Canada Border," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 25(1), pages 154-167.
    3. Bachewe, Fantu Nisrane & Taffesse, Alemayehu Seyoum, 2015. "Dynamic supply response of farm households in Ethiopia:," ESSP working papers 78, International Food Policy Research Institute (IFPRI).

    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. Duffy, Patricia A. & Richardson, James W. & Wohlgenant, Michael K., 1987. "Regional Cotton Acreage Response," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 19(1), pages 99-110, July.
    2. Tsai, Grace Yueh-Hsiang, 1989. "A dynamic model of the U.S. cotton market with rational expectations," ISU General Staff Papers 1989010108000012168, Iowa State University, Department of Economics.
    3. Langley, James A., 1983. "Regional acreage response functions for major US field crops: estimation and policy implications," ISU General Staff Papers 198301010800008678, Iowa State University, Department of Economics.
    4. Duffy, Patricia A. & Wohlgenant, Michael K., 1991. "Effects Of An Export Subsidy On The U.S. Cotton Industry," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 23(2), pages 1-7, December.
    5. Shumway, C. Richard, 1986. "Supply Relationships In The South - What Have We Learned?," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 18(1), pages 1-9, July.
    6. Chen, Dean T. & Ito, Shoichi, 1989. "Modeling Supply Response for Rice Program Analysis: An Application of Implicit Revenue Switching Functions," Staff Reports 257924, Texas A&M University, Agricultural and Food Policy Center.
    7. Duffy, Patricia A. & Wohlgenant, Michael K. & Richardson, Jame W., 1988. "Effects of an Export Subsidy on the U.S. Cotton Industry," 1988 Annual Meeting, August 1-3, Knoxville, Tennessee 270195, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    8. Sukcharoen, Kunlapath & Golden, Bill & Vestal, Mallory & Guerrero, Bridget, 2020. "Do crop price expectations matter? An analysis of groundwater pumping decisions in Western Kansas," Agricultural Water Management, Elsevier, vol. 231(C).
    9. Shumway, C. Richard & Davis, George C., 2001. "Does consistent aggregation really matter?," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 45(2), pages 1-34.
    10. Haile, M.G. & Kalkuhl, M., 2014. "Volatility in the international food markets: implications for global agricultural supply and for market and price policy," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 49, March.
    11. Thompson, C. Stassen, 1986. "Discussion: Supply Relationships In The South - What Have We Learned?," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 18(1), pages 1-3, July.
    12. 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.
    13. Fausti, Scott W. & Qasmi, Bashir A. & Li, Jing, 2010. "Grid Pricing: An Empirical Investigation of Market Signal Clarity," Economics Staff Papers 93253, South Dakota State University, Department of Economics.
    14. Mekbib G. Haile & Matthias Kalkuhl & Joachim Braun, 2014. "Inter- and intra-seasonal crop acreage response to international food prices and implications of volatility," Agricultural Economics, International Association of Agricultural Economists, vol. 45(6), pages 693-710, November.
    15. Skold, Karl Durwood, 1989. "The integration of alternative information systems: an application to the Hogs and Pigs report," ISU General Staff Papers 1989010108000010239, Iowa State University, Department of Economics.
    16. Catherine Hausman, 2012. "Biofuels and Land Use Change: Sugarcane and Soybean Acreage Response in Brazil," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 51(2), pages 163-187, February.
    17. Haile, Mekbib G. & Kalkuhl, Matthias & von Braun, Joachim, 2013. "Short-term global crop acreage response to international food prices and implications of volatility," Discussion Papers 145308, University of Bonn, Center for Development Research (ZEF).
    18. Hazard, Suzanne & Shonkwiler, J. Scott, 1984. "The Use of Expectations In Agricultural Supply Response," 1984 Annual Meeting, August 5-8, Ithaca, New York 278895, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    19. Pope, Rulon D., 1994. "A Perspective On Duality And Production Economics," 1994 Annual Meeting, August 7-10, San Diego, California 271411, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    20. Haile, Mekbib G. & Kalkuhl, Matthias & Braun, Joachim von, 2013. "How does food supply respond to high and volatile international food prices? An empirical evaluation of inter- and intra- seasonal global crop acreage response," 2013 Fourth International Conference, September 22-25, 2013, Hammamet, Tunisia 161472, African Association of Agricultural Economists (AAAE).

    More about this item

    Keywords

    Crop Production/Industries;

    Statistics

    Access and download statistics

    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:joaaec:15270. 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/saeaaea.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.