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Supply Response and Impact of Government-Supported Crops on the Texas Vegetable Industry

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  • Ornelas, Fermin
  • Shumway, C. Richard

Abstract

Supply functions, elasticity estimates, and nonjointness test results consistently indicated that few commodities compete economically in the production of six major Texas vegetables (cabbage, cantaloupes, carrots, onions, potatoes, and watermelons). Significant bias effects caused by government-supported commodities, fixed inputs, and technological change were observed and measured. Nonnested test results for the hypothesis of sequential decision making by vegetable producers were inconclusive, but they gave greater likelihood support to sequential than to contemporaneous decision making.

Suggested Citation

  • Ornelas, Fermin & Shumway, C. Richard, 1993. "Supply Response and Impact of Government-Supported Crops on the Texas Vegetable Industry," Agricultural and Resource Economics Review, Cambridge University Press, vol. 22(1), pages 27-36, April.
    • Handle: RePEc:cup:agrerw:v:22:y:1993:i:01:p:27-36_00
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    1. Ferrier, Peyton M. & Zhen, Chen & Bovay, John, 2023. "Price and Welfare Effects of the Food Safety Modernization Act Produce Safety Rule," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 48(01), January.
    2. Escalante, Cesar L. & Turvey, Calum G. & Barry, Peter J., 2006. "Farm-Level Evidence on the Sustainable Growth Paradigm from Grain and Livestock Farms," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25329, International Association of Agricultural Economists.
    3. Fuller, Stephen W. & Gillis, Melanie & Ziari, Houshmand A., 1996. "Effect Of Liberalized U.S.-Mexico Dry Onion Trade: A Spatial And Intertemporal Equilibrium Analysis," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 28(01), pages 1-13, July.
    4. Letourneau, Deborah K. & Ando, Amy W. & Jedlicka, Julie A. & Narwani, Anita & Barbier, Edward, 2015. "Simple-but-sound methods for estimating the value of changes in biodiversity for biological pest control in agriculture," Ecological Economics, Elsevier, vol. 120(C), pages 215-225.
    5. Peyton Ferrier & Chen Zhen, 2014. "The producer welfare effects of trade liberalization when goods are perishable and habit-forming: the case of asparagus," Agricultural Economics, International Association of Agricultural Economists, vol. 45(2), pages 129-141, March.
    6. Malaga, Jaime E. & Williams, Gary W. & Fuller, Stephen W., 2001. "US-Mexico fresh vegetable trade: the effects of trade liberalization and economic growth," Agricultural Economics, Blackwell, vol. 26(1), pages 45-55, October.

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