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Transport Costs Impacts On The Fresh Market For Peaches - With Special Emphasis On The Northeast

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  • Thatch, Daymon W.
  • Slane, Thomas C.
  • Edelberg, Howard

Abstract

An interregional transportation model was constructed using ordinary least squares and reactive programming to evaluate the short-run economic impact of changing transportation rate on the U.S. interregional equilibrium and, in particular, the Northeast's competitive position for fresh peaches. Using fixed regional supplies, uniquely determined regional per capita consumption and existing transportation rates the reactive programming algorithm obtains solutions to the spatial equilibrium problem including: overall regional quantities supplied and demanded, prices, consumers' outlays, producers' revenues and opportunity, transfer and shipping costs. Transportation rates were varied 20 percent above and below the current rates to examine the short-run economic impact on the prevailing equilibrium. The East Coast was a relatively isolated market and therefore was not significantly affected by changes in transportation rates. The most significant changes in producers' revenues and trade flow patterns occurred in the remaining regions that traded mostly amongst themselves.

Suggested Citation

  • Thatch, Daymon W. & Slane, Thomas C. & Edelberg, Howard, 1985. "Transport Costs Impacts On The Fresh Market For Peaches - With Special Emphasis On The Northeast," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 14(2), pages 1-8, October.
    • Handle: RePEc:ags:nejare:28949
    DOI: 10.22004/ag.econ.28949
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    File URL: https://ageconsearch.umn.edu/record/28949/files/14020161.pdf
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    References listed on IDEAS

    as
    1. Dunn, James W., 1981. "The Effect of Higher Energy Prices on the Competitive Position of Northeast Agriculture," Journal of the Northeastern Agricultural Economics Council, Northeastern Agricultural and Resource Economics Association, vol. 10(2), pages 1-4, October.
    2. Swackhamer, Gene L., 1981. "Competitive Position of Northeast Agriculture," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 0(Number 2), pages 1-8, October.
    3. Dunn, James W., 1981. "The Effect of Higher Energy Prices on the Competitive Position of Northeast Agriculture," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 0(Number 2), pages 1-4, October.
    4. Hallberg, M. C. & Hahn, D. E. & Stammer, R. W. & Elterich, G. J. & Fife, C. L., 1978. "Impact of Alternative Federal Milk Marketing Order Pricing Policies on the United States Dairy Industry," Miscellaneous Series 257743, Pennsylvania State University.
    5. King, Richard A. & Gunn, John, 1981. "Reactive Programming User Manual: A Market Simulating Spatial Equilibrium Algorithm," Department of Economics and Business - Archive 259740, North Carolina State University, Department of Economics.
    6. Swackhamer, Gene L., 1981. "Competitive Position of Northeast Agriculture," Journal of the Northeastern Agricultural Economics Council, Northeastern Agricultural and Resource Economics Association, vol. 10(2), pages 1-8, October.
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    Cited by:

    1. Randolph, Thomas F. & Lee, David R., 1986. "Transportation Deregulation And Interregional Competition In The Northeastern Feed Economy," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 15(2), pages 1-15, October.

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    Keywords

    Crop Production/Industries; Marketing;

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