Advanced Search
MyIDEAS: Login to save this article or follow this journal

Economic Hysteresis And The Effects Of Output Regulation

Contents:

Author Info

  • Richards, Timothy J.

Abstract

Economic hysteresis, the continuation of a phenomenon after its initial cause has disappeared, represents an alternative theoretical explanation for the fixed-asset problem. When a set of fixed assets includes quota licenses, hysteresis in license investment leads to distortions that have not been measured in the policy analysis literature. A model of economic “"friction"” tests the effect of hysteresis in Alberta dairy investment. Estimates of investment functions show that desired investment (disinvestment) must be significantly greater (less) than zero before any action is taken. Because cattle and quota are often purchased together, the relatively long periods of no change in quota holdings that result from hysteresis cause similar periods in which herds neither grow nor contract.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://purl.umn.edu/30999
Download Restriction: no

Bibliographic Info

Article provided by Western Agricultural Economics Association in its journal Journal of Agricultural and Resource Economics.

Volume (Year): 21 (1996)
Issue (Month): 01 (July)
Pages:

as in new window
Handle: RePEc:ags:jlaare:30999

Contact details of provider:
Web page: http://waeaonline.org/
More information through EDIRC

Related research

Keywords: Agricultural and Food Policy;

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Chang, Ching-Cheng & Stefanou, Spiro E., 1988. "Specification and estimation of asymmetric adjustment rates for quasi-fixed factors of production," Journal of Economic Dynamics and Control, Elsevier, vol. 12(1), pages 145-151, March.
  2. Chambers, Robert G. & Lopez, Ramon E., 1984. "A General, Dynamic, Supply-Response Model," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 13(2), October.
  3. Epstein, Larry G & Denny, Michael G S, 1983. "The Multivariate Flexible Accelerator Model: Its Empirical Restrictions and an Application to U.S. Manufacturing," Econometrica, Econometric Society, vol. 51(3), pages 647-74, May.
  4. Gallant, A. Ronald & Jorgenson, Dale W., 1979. "Statistical inference for a system of simultaneous, non-linear, implicit equations in the context of instrumental variable estimation," Journal of Econometrics, Elsevier, vol. 11(2-3), pages 275-302.
  5. Pindyck, Robert S., 1986. "Irreversible investment, capacity choice, and the value of the firm," Working papers 1802-86., Massachusetts Institute of Technology (MIT), Sloan School of Management.
Full references (including those not matched with items on IDEAS)

Citations

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

Cited by:
  1. Katrin Millock & Céline Nauges & Åsa Löfgren, 2007. "Using Ex Post Data to Estimate the Hurdle Rate of Abatement Investments – An Application to the Swedish Pulp and Paper Industry and Energy Sector," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00272041, HAL.
  2. Gardebroek, Cornelis & Oude Lansink, Alfons G.J.M., 2008. "Dynamic Microeconometric Approaches To Analysing Agricultural Policy," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6592, European Association of Agricultural Economists.
  3. Calum G. Turvey, 2010. "Biography: Kiyosi Itô and his influence on the study of agricultural finance and economics," Agricultural Finance Review, Emerald Group Publishing, vol. 70(1), pages 5-20, May.
  4. Löfgren, Åsa & Millock, Katrin & Nauges, Céline, 2008. "The effect of uncertainty on pollution abatement investments: Measuring hurdle rates for Swedish industry," Resource and Energy Economics, Elsevier, vol. 30(4), pages 475-491, December.
  5. Wossink, Ada, 2000. "The Failure Of Marketable Permit Systems And Uncertainty Of Environmental Policy: A Switching Regime Model Applied To The Dutch Phosphate Quota Program," 2000 Annual meeting, July 30-August 2, Tampa, FL 21792, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  6. Arnade, Carlos A. & Gopinath, Munisamy, 1998. "Capital Adjustment In U.S. Agriculture And Food Processing: A Cross-Sectoral Model," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 23(01), July.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:ags:jlaare:30999. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).

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.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.