IDEAS home Printed from https://ideas.repec.org/a/oup/ajagec/v69y1987i1p97-105..html
   My bibliography  Save this article

Dynamic Equilibrium in Markets for Perennial Crops

Author

Listed:
  • Keith C. Knapp

Abstract

A dynamic equilibrium model for perennial crop markets is formulated. Price expectations are formed according to perfect foresight, and both the age composition of the crop and the optimal rotation are determined endogenously. The model is applied to the California alfalfa market. The calculated long-run equilibrium acreage is quite close to average acreage over the base period. The results also exhibit cyclical fluctuations in acreage with a six percent coefficient of variation. Thus, cyclical behavior can arise from technical characteristics of the production process as well as from imperfectly formed expectations or random exogenous shocks.

Suggested Citation

  • Keith C. Knapp, 1987. "Dynamic Equilibrium in Markets for Perennial Crops," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 69(1), pages 97-105.
  • Handle: RePEc:oup:ajagec:v:69:y:1987:i:1:p:97-105.
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.2307/1241310
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Blank, Steven C. & Orloff, Steve B. & Putnam, Daniel H., 2001. "Sequential Stochastic Production Decisions For A Perennial Crop: The Yield/Quality Tradeoff For Alfalfa Hay," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 26(1), pages 1-17, July.
    2. Kazim Konyar & Keith Knapp, 1988. "Market analysis of alfalfa hay: California case," Agribusiness, John Wiley & Sons, Ltd., vol. 4(3), pages 271-284.
    3. Cittadini, E.D. & Lubbers, M.T.M.H. & de Ridder, N. & van Keulen, H. & Claassen, G.D.H., 2008. "Exploring options for farm-level strategic and tactical decision-making in fruit production systems of South Patagonia, Argentina," Agricultural Systems, Elsevier, vol. 98(3), pages 189-198, October.
    4. Bradley Franklin & Keith C. Knapp & Kurt A. Schwabe, 2017. "A Dynamic Regional Model of Irrigated Perennial Crop Production," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 3(01), pages 1-30, January.
    5. Jonathon Siegle & Gregory Astill & Zoƫ Plakias & Daniel Tregeagle, 2024. "Estimating perennial crop supply response: A methodology literature review," Agricultural Economics, International Association of Agricultural Economists, vol. 55(2), pages 159-180, March.
    6. Roosen, Jutta, 1999. "Economic analysis of pesticide regulation in the U.S. apple industry," ISU General Staff Papers 1999010108000013606, Iowa State University, Department of Economics.
    7. Zhao, Xin & Brady, Michael P. & Tozer, Peter R., 2015. "Do Farmers Really Plant Apples for Their Income and Cherries for Their Retirement? The Effects of Risk, Scope and Scale on Orchard Land Allocation," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205663, Agricultural and Applied Economics Association.
    8. Bazen, Ernest F. & Roberts, Roland K. & Travis, John & Larson, James A., 2008. "Factors Affecting Hay Supply and Demand in Tennessee," 2008 Annual Meeting, February 2-6, 2008, Dallas, Texas 6889, Southern Agricultural Economics Association.
    9. Bradley Franklin & Kurt Schwabe & Lucia Levers, 2021. "Perennial Crop Dynamics May Affect Long-Run Groundwater Levels," Land, MDPI, vol. 10(9), pages 1-18, September.
    10. Knapp, Keith & Konyar, Kazim, 1990. "A Dynamic Spatial Equilibrium Model of the California Alfalfa Market," Research Reports 251936, University of California, Davis, Giannini Foundation.
    11. Devadoss, Stephen & Luckstead, Jeff, 2010. "An analysis of apple supply response," International Journal of Production Economics, Elsevier, vol. 124(1), pages 265-271, March.

    More about this item

    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:oup:ajagec:v:69:y:1987:i:1:p:97-105.. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Oxford University Press (email available below). General contact details of provider: https://edirc.repec.org/data/aaeaaea.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.