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Damage Control and Increasing Returns: Further Results

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  • Hennessy, David A.

Abstract

Recently, researchers have been paying attention to the possibility of increasing returns to the use of damage control inputs under very plausible technologies. By looking at the mathematical structure of damage and control functions, a necessary and sufficient condition on these functions for locally increasing returns to occur can be described. Using examples, the author demonstrates how the result can be applied to models with single or multiple control inputs. Because analytic solutions are sometimes not possible, a simple empirical test for concavity violations is also provided. A caution is given about problems associated with estimating the basic model specification.

Suggested Citation

  • Hennessy, David A., 1997. "Damage Control and Increasing Returns: Further Results," Staff General Research Papers Archive 10671, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genres:10671
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    Cited by:

    1. Sébastien Foudi, 2012. "Exploitation of soil biota ecosystem services in agriculture: a bioeconomic approach," Working Papers 2012-02, BC3.
    2. Mitchell, Paul D. & Zhu, En (John), 2003. "Moral Hazard And Bt Corn Refuge," 2003 Annual meeting, July 27-30, Montreal, Canada 22113, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Mitchell, Paul D., 2001. "Additive Versus Proportional Pest Damage Functions: Why Ecology Matters," 2001 Annual meeting, August 5-8, Chicago, IL 20775, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. Margarita Genius & Phoebe Koundouri & Céline Nauges & Vangelis Tzouvelekas, 2014. "Information Transmission in Irrigation Technology Adoption and Diffusion: Social Learning, Extension Services, and Spatial Effects," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 96(1), pages 328-344.
    5. Young, Douglas L. & Smith, Elwin G. & Kwon, Tae-Jin, 2000. "Aggregation Issues In Pest Control Economics: A Bioeconomic Approach," 2000 Annual Meeting, June 29-July 1, 2000, Vancouver, British Columbia 36448, Western Agricultural Economics Association.
    6. Chambers, Robert G. & Tzouvelekas, Vangelis, 2013. "Estimating population dynamics without population data," Journal of Environmental Economics and Management, Elsevier, vol. 66(3), pages 510-522.
    7. Mitchell, Paul D. & Hurley, Terrance M. & Babcock, Bruce A. & Hellmich, Richard L., 2002. "Insuring The Stewardship Of Bt Corn: 'A Carrot' Versus 'A Stick'," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 27(2), pages 1-16, December.
    8. Foudi, Sébastien, 2012. "The role of farmers' property rights in soil ecosystem services conservation," Ecological Economics, Elsevier, vol. 83(C), pages 90-96.
    9. Robert G. Chambers & Giannis Karagiannis & Vangelis Tzouvelekas, 2009. "Yet Another Look at Pest Damage and Pesticide Productivity," Working Papers 0911, University of Crete, Department of Economics.
    10. Hurley, Terrance M. & Mitchell, Paul D. & Rice, Marlin E., 2001. "What Is The Value Of Bt Corn?," 2001 Annual meeting, August 5-8, Chicago, IL 20476, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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