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Full-Text Articles in Other Economics

Opportunities For Advances In Climate Change Economics, M. Burke, M. Craxton, C.D. Kolstad, C. Onda, H. Allcott, E. Baker, L. Barrage, R. Carson, K. Gillingham, J. Graff-Zivin, M. Greenstone, S. Hallegatte, W.M. Hanemann, G. Heal, S. Hsiang, B. Jones, D.L. Kelly, R. Kopp, M. Kotchen, R. Mendelsohn, K. Meng, G. Metcalf, J. Moreno-Cruz, R. Pindyck, S. Rose, Ivan Rudik, J. Stock, R.S.J. Tol Apr 2016

Opportunities For Advances In Climate Change Economics, M. Burke, M. Craxton, C.D. Kolstad, C. Onda, H. Allcott, E. Baker, L. Barrage, R. Carson, K. Gillingham, J. Graff-Zivin, M. Greenstone, S. Hallegatte, W.M. Hanemann, G. Heal, S. Hsiang, B. Jones, D.L. Kelly, R. Kopp, M. Kotchen, R. Mendelsohn, K. Meng, G. Metcalf, J. Moreno-Cruz, R. Pindyck, S. Rose, Ivan Rudik, J. Stock, R.S.J. Tol

Economics Publications

There have been dramatic advances in understanding the physical science of climate change, facilitated by substantial and reliable research support. The social value of these advances depends on understanding their implications for society, an arena where research support has been more modest and research progress slower. Some advances have been made in understanding and formalizing climate-economy linkages, but knowledge gaps remain [e.g., as discussed in (1, 2)]. We outline three areas where we believe research progress on climate economics is both sorely needed, in light of policy relevance, and possible within the next few years given appropriate funding: (i ...


Fertility, Social Mobility And Long Run Inequality, Juan Carlos Cordoba, Xiying Liu, Marla Ripoll Feb 2016

Fertility, Social Mobility And Long Run Inequality, Juan Carlos Cordoba, Xiying Liu, Marla Ripoll

Economics Publications

Dynastic altruistic models with endogenous fertility have been shown to be unable to generate enough intergenerational persistence. Using a Bewley model with endogenous fertility we show that it is possible to recover persistence. Key ingredients for our result include exponential child discounting, discrete number of children, diminishing costs of child rearing, and an elasticity of intergenerational substitution larger than one. Our model provides a unified framework of analysis for long-run inequality that incorporates fertility choices.


Does Agglomeration Matter Everywhere?: New Firm Location Decisions In Rural And Urban Markets, Georgeanne M. Artz, Younjun Kim, Peter Orazem Jan 2016

Does Agglomeration Matter Everywhere?: New Firm Location Decisions In Rural And Urban Markets, Georgeanne M. Artz, Younjun Kim, Peter Orazem

Economics Publications

We test whether commonly used measures of agglomeration economies encourage new firm entry in both urban and rural markets. Using new firm location decisions in Iowa and North Carolina, we find that measured agglomeration economies increase the probability of new firm entry in both urban and rural areas. Firms are more likely to locate in markets with an existing cluster of firms in the same industry, with greater concentrations of upstream suppliers or downstream customers, and with a larger proportion of college-educated workers in the local labor supply. Firms are less likely to enter markets with no incumbent firms in ...


An 8-Zone Test System Based On Iso New England Data: Development And Application, Dheepak Krishnamurthy, Wanning Li, Leigh Tesfatsion Jan 2016

An 8-Zone Test System Based On Iso New England Data: Development And Application, Dheepak Krishnamurthy, Wanning Li, Leigh Tesfatsion

Economics Publications

This study develops an open-source 8-zone test system for teaching, training, and research purposes that is based on ISO New England structural attributes and data. The test system models an ISO-managed wholesale power market populated by a mix of generating companies and load-serving entities that operates through time over an 8-zone AC transmission grid. The modular extensible architecture of the test system permits a wide range of sensitivity studies to be conducted. To illustrate the capabilities of the test system, we report energy cost-savings outcomes for a comparative study of stochastic versus deterministic DAM security constrained unit commitment (SCUC) formulations ...


A Note On First-Price Sealed-Bid Cattle Auctions In The Presence Of Captive Supplies, John M. Crespi, Tian Xia Dec 2015

A Note On First-Price Sealed-Bid Cattle Auctions In The Presence Of Captive Supplies, John M. Crespi, Tian Xia

Economics Publications

The authors present an analytical model of a ϐirst-price sealed-bid cattle auction in which a spot and coordinated markets are interconnected. The model reveals that the conventional wisdom that market coordination negatively affects the bid price in the spot market is an oversimpliϐication. The relationships between key market variables impact bids and bid shading in complex ways. While captive supplies can lead to lower spot prices, the price reductions do not necessarily stem from an increase in market power due to contracting. The model emphasizes the importance of several variables for future empirical studies.


Hog Inventory Breaks A Record, Lee L. Schulz Nov 2015

Hog Inventory Breaks A Record, Lee L. Schulz

Economics Publications

From 2011 through 2014, the lean hog price needed to cover production costs averaged $83 per cwt, as calculated by Iowa State University’s Estimated Livestock Returns. Lower feed costs trimmed the 2015 breakeven price for farrow-to-finish operations to about $66 per cwt. It goes without saying that the market wants to buy more hogs at $66 per cwt than it did at $83. Lower costs let producers increase the herd to get quantity supplied closer to demand.


Watch Cattle Weight Variability, Lee L. Schulz Sep 2015

Watch Cattle Weight Variability, Lee L. Schulz

Economics Publications

Analysts routinely use USDA estimates of feedlot placements by weight groups to project timing of fed cattle marketings. Expected slaughter numbers can help improve fed cattle price forecasts and marketing strategies. However, recent variability in placement weights amplifi es the uncertainty about the current and coming fed cattle market


Perspective Makes A Difference, Lee L. Schulz Jul 2015

Perspective Makes A Difference, Lee L. Schulz

Economics Publications

USDA’S June Hogs and Pigs Report told us where the industry is and where it may be headed. The report showed a big surge in inventories compared to the PEDV-depressed levels a year ago. But inventories aren’t that far out of line with June 2013 levels prior to PEDV.


The Design And Economics Of Low Carbon Fuel Standards, Gabriel E. Lade, C.-Y. Cynthia Lin Lawell Jan 2015

The Design And Economics Of Low Carbon Fuel Standards, Gabriel E. Lade, C.-Y. Cynthia Lin Lawell

Economics Publications

Low carbon fuel standards (LCFS) are increasingly common policy tools used to decrease emissions and increase the penetration of renewable energy technologies in the transportation sector. In this paper, we discuss important design elements of the policy, and provide a background on prominent policies that are currently enacted or proposed. The economics of an LCFS are presented using a simple conceptual model, and the economic literature on the policy is reviewed. Important opportunities to build on the extant literature are identified, including studying the role of low carbon fuel standards in spurring technical change, and the interaction of the policy ...


Impacts Of National Forests In The West On County Population And Employment, Andrew Pugliese, Laura Mccann, Georgeanne M. Artz Jan 2015

Impacts Of National Forests In The West On County Population And Employment, Andrew Pugliese, Laura Mccann, Georgeanne M. Artz

Economics Publications

This study seeks to understand the manner and extent to which western national forests influence an area's overall population and employment growth by evaluating changes in management emphasis from single to multiple uses. The Carlino and Mills model was used to examine county level data from 12 western states over the period 1977–2010. Changes in timber sales and the amount of land owned by the Forest Service were not found to be significantly related to employment growth.


Strength Of Protection For Geographical Indications: Promotion Incentives And Welfare Effects, Luisa Menapace, Giancarlo Moschini Jul 2014

Strength Of Protection For Geographical Indications: Promotion Incentives And Welfare Effects, Luisa Menapace, Giancarlo Moschini

Economics Publications

We address the question of how the strength of protection for geographical indications (GIs) affects the GI industry's promotion incentives, equilibrium market outcomes, and the distribution of welfare. Geographical indication producers engage in informative advertising by associating their true quality premium (relative to a substitute product) with a specific label emphasizing the GI's geographic origin. The extent to which the names/words of the GI label can be used and/or imitated by competing products—which depends on the strength of GI protection—determines how informative the GI promotion messages can be. Consumers’ heterogeneous preferences (vis-à-vis the GI ...


Luminate: Linking Agricultural Land Use, Local Water Quality And Gulf Of Mexico Hypoxia, Catherine L. Kling, Yiannis Panagopoulos, Sergey S. Rabotyagov, Adriana Valcu-Lisman, Philip W. Gassman, Todd D. Campbell, Michael J. White, Jeffrey G. Arnold, Raghavan Srinivasan, Manoj K. Jha, Jeffrey J. Richardson, L. Monika Moskal, R. Eugene Turner, Nancy N. Rabalais Jun 2014

Luminate: Linking Agricultural Land Use, Local Water Quality And Gulf Of Mexico Hypoxia, Catherine L. Kling, Yiannis Panagopoulos, Sergey S. Rabotyagov, Adriana Valcu-Lisman, Philip W. Gassman, Todd D. Campbell, Michael J. White, Jeffrey G. Arnold, Raghavan Srinivasan, Manoj K. Jha, Jeffrey J. Richardson, L. Monika Moskal, R. Eugene Turner, Nancy N. Rabalais

Economics Publications

In this paper, we discuss the importance of developing integrated assessment models to support the design and implementation of policies to address water quality problems associated with agricultural pollution. We describe a new modelling system, LUMINATE, which links land use decisions made at the field scale in the Upper Mississippi, Ohio and Tennessee Basins through both environmental and hydrological components to downstream water quality effects and hypoxia in the Gulf of Mexico. This modelling system can be used to analyse detailed policy scenarios identifying the costs of the policies and their resulting benefits for improved local and regional water quality ...


Producing Energy While Sequestering Carbon? The Relationship Between Biochar And Agricultural Productivity, Nathan Kauffman, Jerome Dumortier, Dermot J. Hayes, Robert C. Brown, David Laird Apr 2014

Producing Energy While Sequestering Carbon? The Relationship Between Biochar And Agricultural Productivity, Nathan Kauffman, Jerome Dumortier, Dermot J. Hayes, Robert C. Brown, David Laird

Economics Publications

A partial solution to problems associated with anthropogenic greenhouse gas (GHG) emissions could be the development and deployment of carbon-negative technologies, i.e., producing energy while reducing atmospheric carbon dioxide levels. Biofuels have been considered a possibility but have faced limitations due to competition with food production and GHG emissions through indirect land-use change (ILUC). In this article, we show how emissions from ILUC can potentially be reduced by producing food and bioenergy from biochar amended soils. The possibility of yield improvements from biochar would reduce the land requirement for crop production and thus, lead to a reduction in emissions ...


China’S Profits And Losses From Currency Intervention, 1994-2011, Hailong Jin, E. Kwan Choi Jan 2014

China’S Profits And Losses From Currency Intervention, 1994-2011, Hailong Jin, E. Kwan Choi

Economics Publications

China's currency policy has been criticized for its apparent pursuit of mercantile advantage by artificially stimulating exports, with potential adverse effects on other economies. While China's currency policy may have positive output effects, there may be additional profits or losses. This paper computes the annual and cumulative accounting profits from currency intervention since 1994 when China began its currency intervention. It is shown that profits initially were positive but since 2007 China has lost a massive amount from the currency market.


Genetic Contamination Of Traditional Products, E. Kwan Choi Jan 2013

Genetic Contamination Of Traditional Products, E. Kwan Choi

Economics Publications

Cross-pollination can be caused by birds, insects and wind. Genetically modified (GM) seeds are produced each year in a controlled environment to maintain their purity. However, pollen from the GM crop can be transferred to traditional crops. When the GM crop producers are in long-run equilibrium and buy seeds from a monopolistic seed producer, the resulting market equilibrium is identical to that when a seed monopolist produces the GM crop directly. When involuntary genetic contamination occurs, the monopolist eventually loses its advantage and stops its protection of GM seeds. A terminator gene can stop genetic contamination but imposes spillover costs ...


Supply Side Structural Change, Juan Carlos Cordoba Jan 2013

Supply Side Structural Change, Juan Carlos Cordoba

Economics Publications

The interest rate and the rate of economic growth are often regarded as roughly constant as economies grow. Moreover, the share of agriculture in production and the share of rural population typically shrink. We show that an otherwise standard growth model that includes a backward and an advanced sector can account for these regularities. The mechanism works as follows: as the economy accumulates capital, labor flows from the backward sector to the advanced one. This migration prevents the usual diminishing marginal returns of capital. As a result, the interest rate and the growth rate of the economy remain constant during ...


Impact Of Idiosyncratic Volatility On Stock Returns: A Cross-Sectional Study, Serguey Khonvansky, Oleksandr Zhylyevskyy Jan 2013

Impact Of Idiosyncratic Volatility On Stock Returns: A Cross-Sectional Study, Serguey Khonvansky, Oleksandr Zhylyevskyy

Economics Publications

This paper proposes a new approach to estimate the idiosyncratic volatility premium. In contrast to the popular two-pass regression method, this approach relies on a novel GMM-type estimation procedure that uses only a single cross-section of return observations to obtain consistent estimates. Also, it enables a comparison of idiosyncratic volatility premia estimated using stock returns with different holding periods. The approach is empirically illustrated by applying it to daily, weekly, monthly, quarterly, and annual US stock return data over the course of 2000–2011. The results suggest that the idiosyncratic volatility premium tends to be positive on daily return data ...


The Long-Term Structure Of Commodity Futures, Na Jin, Sergio H. Lence, Chad Hart, Dermot J. Hayes Jan 2012

The Long-Term Structure Of Commodity Futures, Na Jin, Sergio H. Lence, Chad Hart, Dermot J. Hayes

Economics Publications

Futures markets on agricultural commodities typically trade with maximum maturity dates of less than four years. If these markets did trade with maturities eight or ten years distant, futures prices would have value as price forecasts and as a way to structure long-term swaps and insurance contracts. Agricultural commodity markets generally exhibit mean reversion in spot prices and convenience yields. Spot markets also exhibit seasonality. This study develops and implements a procedure to generate long-term futures curves from existing futures prices. Data on lean hogs and soybeans are used to show that the method provides plausible results.


Testing For Cointegration In The Presence Of Moving Average Errors, Mindy Mallory, Sergio H. Lence Jan 2012

Testing For Cointegration In The Presence Of Moving Average Errors, Mindy Mallory, Sergio H. Lence

Economics Publications

This study explores performance of the Johansen cointegration statistics on data containing negative moving average (NMA) errors. Monte Carlo experiments demonstrate that the asymptotic distributions of the statistics are sensitive to NMA parameters, and that using the standard 5% asymptotic critical values results in severe underestimation of the actual test sizes. We demonstrate that problems associated with NMA errors do not decrease as sample size increases; instead, they become more severe. Further we examine evidence that many U.S. commodity prices are characterized by NMA errors. Pretesting data is recommended before using standard asymptotic critical values for Johansen’s cointegration ...


Welfare Costs And Benefits Of Non-Tariff Measures In Trade: A Conceptual Framework And Application, John Beghin, Anne-Celia Disdier, Stephan Marette, Frank Van Tongeren Jan 2012

Welfare Costs And Benefits Of Non-Tariff Measures In Trade: A Conceptual Framework And Application, John Beghin, Anne-Celia Disdier, Stephan Marette, Frank Van Tongeren

Economics Publications

This paper provides a systematic welfare-based approach to analyze the impact of non-tariff measures (NTMs) on trade and welfare in presence of market imperfections. We focus on standard-like measures such as technical barriers and sanitary and phytosanitary regulations. The approach overcomes the shortcomings of the mainstream approach based on the analysis of forgone trade caused by trade costs. The latter ignores market imperfections: welfare increases when NTMs are removed and trade expands. We explain how to account for external effects and market failures in trade-focused welfare analysis, leading to a more balanced overall assessment of measures despite a potential reduction ...


Value Of Beef Steak Branding: Hedonic Analysis Of Retail Scanner Data, Lee L. Schulz, Ted C. Schroeder, Katharine L. White Jan 2012

Value Of Beef Steak Branding: Hedonic Analysis Of Retail Scanner Data, Lee L. Schulz, Ted C. Schroeder, Katharine L. White

Economics Publications

Consumers rely on experience and credence attributes when purchasing beef from retailers. It is essential for all beef industry sectors to recognize the complexity of consumer buying behavior. A hedonic model is estimated to determine if there are incentives to brand beef steaks, the types of brands that entertain price premiums, and the level of existing premiums. Most branded steaks garnered premiums along with organic claims, religious processing claims, and premium cuts. Factors influencing brand value were new brands targeting emerging consumer trends, brands with regional prominence, and brands positioned as special label, program/breed specific production, and store labels.


Economics Of Biofuels: An Overview Of Policies, Impacts And Prospects, Giancarlo Moschini, Jingbo Cui, Harvey Lapan Jan 2012

Economics Of Biofuels: An Overview Of Policies, Impacts And Prospects, Giancarlo Moschini, Jingbo Cui, Harvey Lapan

Economics Publications

This paper provides an overview of the economics of biofuels. It starts by describing the remarkable growth of the biofuel industry over the last decade, with emphasis on developments in the United States, Brazil and the European Union, and it identifies the driving role played by some critical policies. After a brief discussion of the motivations that are commonly argued in favor of biofuels and biofuel policies, the paper presents an assessment of the impacts of biofuels from the economics perspective. In particular, the paper explains the basic analytics of biofuel mandates, reviews several existing studies that have estimated the ...


The Impacts Of Biofuels Targets On Land-Use Change And Food Supply: A Global Cge Assessment, Govinda R. Timilsina, John Beghin, Dominique Van Der Mensbrugghe, Simon Mevel Jan 2012

The Impacts Of Biofuels Targets On Land-Use Change And Food Supply: A Global Cge Assessment, Govinda R. Timilsina, John Beghin, Dominique Van Der Mensbrugghe, Simon Mevel

Economics Publications

We analyze the long-term impacts of large-scale expansion of biofuels on land-use change, food supply and prices, and the overall economy in various countries or regions using a multi-country, multi-sector global computable general equilibrium model augmented with an explicit land-use module and detailed biofuel sectors. We find that an expansion of biofuel production to meet the existing or even higher targets in various countries would slightly reduce GDP at the global level but with mixed effects across countries or regions. Significant land re-allocation would take place with notable decreases in forest and pasture lands in a few countries. The expansion ...


To Integrate With A High- Or Low-Wage Country: That Is The Question, E. Kwan Choi Jan 2011

To Integrate With A High- Or Low-Wage Country: That Is The Question, E. Kwan Choi

Economics Publications

This paper considers the question of whether a country with the intermediate capital–labor ratio is better off forming a free trade area with the higher or lower wage country. Typical analyses of gains from trade ignore the effects of free trade on factor prices. When Europe forms a free trade area with a high-wage economy, the equalized wage rises and rent declines, while the price of the importable declines. Workers unambiguously benefit, but integration has an ambiguous effect on capitalists. However, consumers as a whole benefit from the integration and workers can more than offset the losses of the ...


Evaluating Food-Fuel Trade-Offs Via Market Choice: The Case Of Iowa Corn Producers, Tun-Hsiang Yu, Chad Hart, Wen You Jan 2011

Evaluating Food-Fuel Trade-Offs Via Market Choice: The Case Of Iowa Corn Producers, Tun-Hsiang Yu, Chad Hart, Wen You

Economics Publications

This study examines food-fuel trade-offs from the perspective of crop producers and their choices in marketing their grain among food, feed and fuel use. Based on a recent survey of Iowa grain producers, this study finds that price competition from ethanol plants has increased the share of the corn marketed directly to ethanol plants and lowered the market share of corn marketed for domestic and international food/feed purposes. Other factors, such as farm size and market distance, affect the share of corn directed to the fuel, food, and feed markets. The results indicate corn producers are willing to bear ...


Tariff-Rate Quotas, Rent-Shifting And The Selling Of Domestic Access, Bruno Larue, Harvey E. Lapan, Jean-Philippe Gervais Jan 2010

Tariff-Rate Quotas, Rent-Shifting And The Selling Of Domestic Access, Bruno Larue, Harvey E. Lapan, Jean-Philippe Gervais

Economics Publications

Tariff-rate quotas (TRQs) have replaced quotas at the end of the Uruguay Round. We analyze TRQs when a foreign firm competes against a domestic firm in the latter's market. Our benchmark is the strategic rent-shifting tariff. We show that the domestic price-equivalent TRQ is a better instrument welfare-wise, as it can extract all of the rents from the foreign firm. We show that different pairs of within-quota tariff and quota can support full rent extraction. The implication is that reduction of the former and enlargement of the latter, holding the above-quota tariff constant, may have no liberalizing effects. The ...


Assessing The Welfare Effects Of Us Biofuel Policies, Giancarlo Moschini, Harvey Lapan, Jingbo Cui, Joseph Cooper Jan 2010

Assessing The Welfare Effects Of Us Biofuel Policies, Giancarlo Moschini, Harvey Lapan, Jingbo Cui, Joseph Cooper

Economics Publications

This article assesses the main welfare implications of US policies to support biofuels, with an emphasis on corn-based ethanol. The analysis relies on an open economy, multimarket equilibrium model that links world and domestic energy and agricultural markets and explicitly accounts for the externalities of carbon emissions. The first-best policy in our context entails a carbon tax (implemented with a tax on fuel and a subsidy for ethanol), an import tariff on oil, and an export tax on corn. Although this policy is likely not feasible, we show that a second- best policy with an optimally chosen fuel tax and ...


Readdressing The Fertilizer Problem, Nicholas D. Paulson, Bruce A. Babcock Jan 2010

Readdressing The Fertilizer Problem, Nicholas D. Paulson, Bruce A. Babcock

Economics Publications

The production literature has shown that inputs such as fertilizer can be defined as riskincreasing. However, farmers also consistently overapply nitrogen. A model of optimal input use under uncertainty is used to address this paradox. Using experimental data, a stochastic production relationship between yield and soil nitrate is estimated. Numerical results show that input uncertainty may cause farmers to overapply nitrogen. Survey data suggest that farmers are risk averse, but prefer small chances of high yields compared to small chances of crop failures when expected yields are equivalent. Furthermore, yield risk and yield variability are not equivalent.


Food And Consumer Economics, Laurian Unnevehr, James Eales, Helen Jensen, Jayson Lusk, Jill Mccluskey, Jean Kinsey Jan 2010

Food And Consumer Economics, Laurian Unnevehr, James Eales, Helen Jensen, Jayson Lusk, Jill Mccluskey, Jean Kinsey

Economics Publications

Agricultural economists first carried out demand studies in order to understand determinants of farm prices and incomes. The shift to a focus on consumer welfare began with studies of the role of food and food assistance in standards of living. Now the profession is more concerned with how information and quality attributes influence consumer behavior. Agricultural economists’ empirical work in this field has informed the development of household production theory, hedonic price theory, definitions of poverty thresholds, complete demand systems, and survey and experimental techniques to elicit preferences.


Geographical Indications And The Competitive Provision Of Quality In Agricultural Markets, Giancarlo Moschini, Luisa Menapace, Daniel Pick Aug 2008

Geographical Indications And The Competitive Provision Of Quality In Agricultural Markets, Giancarlo Moschini, Luisa Menapace, Daniel Pick

Economics Publications

The economics of geographical indications (GIs) is assessed within a vertical product differentiation framework that is consistent with the competitive structure of agriculture. It is assumed that certification costs are needed for GIs to serve as (collective) credible quality certification devices, and production of high-quality product is endogenously determined. We find that GIs can support a competitive provision of quality and lead to clear welfare gains, although they fall short of delivering the (constrained) first best. The main beneficiaries are consumers. Producers may also accrue some benefit if production of the high-quality products draws on scarce factors that they own.