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The Effect Of Government Programs On Acreage Response Over Time: The Case Of Corn Production In Iowa

Listed author(s):
  • McIntosh, Christopher S.
  • Shideed, Kamil H.

Corn acreage response in Iowa is examined using a time-varying parameter regression model. Separate estimates of the permanent portion of the parameter vector are obtained for each year over the period 1957-82. The estimated elasticities are grouped into “program” and “nonprogram” periods. The results indicate corn acreage response is more own-price elastics, and the elasticity is less variable under government acreage control programs than under a “nonprogram” regime. The assumption of parameter constancy is shown to be inappropriate for modeling Iowa corn acreage response over time.

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

Volume (Year): 14 (1989)
Issue (Month): 01 (July)

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Handle: RePEc:ags:wjagec:32462
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  1. Houck, James P., 1976. "Analyzing the Impact of Government Programs on Crop Acreage," Technical Bulletins 158119, United States Department of Agriculture, Economic Research Service.
  2. Gordon C. Rausser & Richard E. Just, 1981. "Principles of policy modeling in agriculture," Proceedings – Rural and Agricultural Conferences, Federal Reserve Bank of Kansas City, pages 139-178.
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