Soybean Acreage Response in Brazil
Abstract
This paper advances Williams and Thompson (1984) by updating their work and by explicitly accounting for price and yield risk in the analysis of acreage response in Brazil for soybeans and by assessing model specification. Empirical equations were estimated using seemingly unrelated regression (SUR). The robustness of the model was evaluated in the battery of misspecification tests suggested by McGuirk et al. (1993) and McGuirk et al. (1995). The results of the testing procedure suggest that the model is fairly robust in terms of normality, heteroscedasticity and functional form. The results point to parameter instability in the soybean model. The approach to the problem of parameter instability involved dividing the data in two periods and estimating regressions for each period. The signs of the significant coefficients were consistent with expectation, particularly for the second period. Soybean acreage is explained mainly by past acreage, expected prices of soybeans and land competing crops (cotton, rice, and corn), and price and yield risk. Results suggest that market signals played a reduced role in the soybean acreage growth in early years. In contrast, in recent years producers in Brazil became more sensitive to changes in prices and risk. Measures of short-run price elasticity of soybean acreage response are similar to the one obtained by William and Thompson (1984) for soybean supply. Long-run elasticities are significantly smaller.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.Bibliographic Info
Paper provided by NCR-134 Conference on Applied Commodity Price Analysis, Forecasting, and Market Risk Management in its series 2006 Conference, April 17-18, 2006, St. Louis, Missouri with number 19003.Length:
Date of creation: 2006
Date of revision:
Handle: RePEc:ags:ncrsix:19003
Contact details of provider:
Web page: http://www.agebb.missouri.edu/ncrext/ncr134/
Related research
Keywords: Crop Production/Industries;References
No references listed on IDEASYou can help add them by filling out this form.
Citations
Lists
This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.Statistics
Access and download statisticsCorrections
When requesting a correction, please mention this item's handle: RePEc:ags:ncrsix:19003For 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.