TITLE

Acreage Response, Expected Price Functions, and Endogenous Price Expectations

AUTHOR(S)
Jung-Sup Choi; Helmberger, Peter G.
PUB. DATE
July 1993
SOURCE
Journal of Agricultural & Resource Economics;1993, Vol. 18 Issue 1, p37
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
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).
ACCESSION #
23871301

 

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