Acreage Response, Expected Price Functions, and Endogenous Price Expectations

Jung-Sup Choi; Helmberger, Peter G.
July 1993
Journal of Agricultural & Resource Economics;1993, Vol. 18 Issue 1, p37
Academic Journal
Taking the price of futures as a proxy for expected price, this article treats acreage planted to soybeans, the price of futures, and other variables as jointly dependent. A futures price equation is embedded in a simultaneous equations model along with the consumption demand and acreage response. The model is estimated using both ordinary and three-stage least squares. Estimated price elasticities for consumption demand, demand for stocks, and acreage response equal, respectively, -.5, -1.8, and +.2 (short run) and +.59 (long run).


Related Articles

  • Long-Run Comparative Statics under Output and Land Price Uncertainty. Paris, Quirino // American Journal of Agricultural Economics;Feb88, Vol. 70 Issue 1, p133 

    Several authors have noticed that, in the uncertain short run, the supply function may slope downward and the input demand functions may slope upward. These possibilities prevent the setup of unambiguous tests of rational behavior. In this article, testable hypotheses for the competitive firm...

  • A Critique of Pure Economics. Komlos, John // Challenge (05775132);Mar/Apr2012, Vol. 55 Issue 2, p21 

    The title of this piece tells it all. It is not that our author does not believe in markets but that he thinks they have many natural limitations. He welcomes them when empirical evidence suggests that they work. But in this fine and necessary criticism of conventional "rational-person"...

  • REPLY TO WHITE. Ekelund Jr., Robert B. // Journal of the History of Economic Thought;Sep98, Vol. 20 Issue 3, p375 

    Responds to M.V. White's comments on an analysis of price formation in an article by William Thornton. Production costs; Theory of supply and demand; Trader's expectations of market conditions.

  • THE PRICE LEVEL IN PRINCIPLES OF MACROECONOMICS: A REVIEW ESSAY. Wood, William C. // American Economist;Spring85, Vol. 29 Issue 1 

    Discusses the issues dealing with the incorporation of the variable price levels' aggregate supply-aggregate demand (AS-AD) model in economic textbooks. Justification of the slope of the aggregate demand curve; Role of the Keynesian cross; Use of the AS-AD model to illustrate rational expectations.

  • Bean acreage not enough to wake bear. Robinson, Elton // Southwest Farm Press;4/15/2004, Vol. 31 Issue 11, p9 

    Reports on the increase in soybean acreage, which will not have any significant effect on the prices of soybean. Probable presence of a weak market; Insufficiency of corn acreage to satisfy the demand profile; Need for good weather and longer term; Need for pricing the corn competitively...

  • Four Approaches to Commodity Market Stabilization: A Comparative Analysis. Glauber, Joseph; Helmberger, Peter; Miranda, Marlo // American Journal of Agricultural Economics;May89, Vol. 71 Issue 2, p326 

    The effects of four alternative price stabilization programs for soybeans are compared using a rational expectations model and simulation. For a given government expenditure, subsidized private storage is the most efficient way to stabilize market price. For a given deadweight loss, a program of...

  • SIMULATION MODEL FOR SUPPLY CHAIN RELIABILITY EVALUATION. Klimov, Ruslan; Merkuryev, Yuri // Technological & Economic Development of Economy;2008, Vol. 14 Issue 3, p300 

    This paper investigates problems related to supply chain risk identification and simulation- based risk evaluation. Accordingly, the paper is divided into two logical parts. The first part represents earlier researches about risk recognition within the sphere of supply chains. The distinction...

  • A COMMENT ON EKELUND ON THORNTON. White, Michael V. // Journal of the History of Economic Thought;Sep98, Vol. 20 Issue 3, p371 

    Comments on Robert Ekelund's analysis of price formation in an article by William Thornton. Definition of supply and demand; Market-period value of reproducible commodities; Traders' expectations of market conditions.

  • Regional Energy Market Overview.  // Canada Oil & Gas Report;Q1 2009, p28 

    The article presents an overview of the regional energy market for 2009 in North America. It highlights Canada's oil supply and demand as its growing synthetic oil volumes from the vast oil sands projects will be increasing over the next several years, while regional demand of 23.00 mn b/d in...


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics