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

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  • McIntosh, Christopher S.
  • Shideed, Kamil H.

Abstract

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.

Suggested Citation

  • McIntosh, Christopher S. & Shideed, Kamil H., 1989. "The Effect Of Government Programs On Acreage Response Over Time: The Case Of Corn Production In Iowa," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 14(01), pages 1-7, July.
    • Handle: RePEc:ags:wjagec:32462
    DOI: 10.22004/ag.econ.32462
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    References listed on IDEAS

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    Cited by:

    1. Parrott, Scott D. & McIntosh, Christopher S., 1996. "Nonconstant Price Expectations and Acreage Response: The Case of Cotton Production in Georgia," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 28(1), pages 203-210, July.
    2. Vedenov, Dmitry V., 2003. ""Irrational" Planting Behavior As Rational Expectations Of Government Support," 2003 Annual Meeting, February 1-5, 2003, Mobile, Alabama 35237, Southern Agricultural Economics Association.
    3. Hyunseok Kim & GianCarlo Moschini, 2018. "The Dynamics of Supply: U.S. Corn and Soybeans in the Biofuel Era," Land Economics, University of Wisconsin Press, vol. 94(4), pages 593-613.
    4. Ramsey, Steven M. & Bergtold, Jason S. & Heier Stamm, Jessica, "undated". "An Artificial Neural Network Approach to Acreage-Share Modeling," 2018 Annual Meeting, August 5-7, Washington, D.C. 274395, Agricultural and Applied Economics Association.
    5. Chembezi, Duncan M. & Womack, Abner W., 1992. "Regional Acreage Response For U.S. Corn And Wheat: The Effects Of Government Programs," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 24(01), pages 1-12, July.
    6. Hardie, Ian & Parks, Peter, 1990. "Aggregation of Profit-Maximizing Land Use Decisions for the Analysis of New Land Use Policies," Working Papers 197742, University of Maryland, Department of Agricultural and Resource Economics.
    7. Carey, Kathleen, 1992. "The U.S. Wheat And Corn Programs: Some Domestic Welfare And International Trade Implications," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 24(01), pages 1-8, July.
    8. Coyle, Barry T., 1993. "On Modeling Systems Of Crop Acreage Demands," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 18(01), pages 1-13, July.
    9. Stavriotis, Paul A. & Houston, Jack E. & McIntosh, Christopher S. & Turner, Steven C., 1998. "Leading Indicators For Regional Cotton Response: Structural And Time Series Modeling Results," Faculty Series 16717, University of Georgia, Department of Agricultural and Applied Economics.
    10. O'Donoghue, Erik J. & Whitaker, James B., 2006. "How distorting are direct payments?," 2006 Annual meeting, July 23-26, Long Beach, CA 21247, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    11. Jolejole, Christina B. & Swinton, Scott M. & Lupi, Frank, 2009. "Incentives to Supply Enhanced Ecosystem Services from Cropland," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49356, Agricultural and Applied Economics Association.

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