NON-PARAMETRIC AND SEMI-PARAMETRIC TECHNIQUES FOR MODELING AND SIMULATING CORRELATED, NON-NORMAL PRICE AND YIELD DISTRIBUTIONS: APPLICATIONS TO RISK ANALYSIS IN KANSAS AGRICULTURE

Parametric, non-parametric, and semi-parametric approaches are commonly used for modeling correlated distributions. Semi-parametric and non-parametric approaches are used to examine the risk situation for Kansas agriculture. Results from the model indicate that 2000 will be another difficult year for Kansas farmers, although crop income will increase slightly from 1999. However, unless another supplemental infusion of government payments occurs, crop income is expected to be the lowest since 1992.correlated distributions, non-parametric modeling, semi-parametric modeling, Kansas agriculture, Research Methods/ Statistical Methods,

THE MULTI-PRODUCT ASYMPTOTICALLY IDEAL MODEL: AN APPLICATION TO AGRICULTURE

This paper examines the Multi-Product Asymptotically Ideal Production Model as an alternative to the translog and normalized quadratic functional forms using farm level data. Factors such as ease of estimation, imposition of regularity conditions, and quantitative differences in empirical estimates are compared.AIM, Asymptotically Ideal Model, flexible functional form, cost function, Production Economics, Research Methods/ Statistical Methods,

A Nonparametric Analysis of Efficiency for a Beefpacking Firm: Implications of Federal Food Safety Regulations

Agribusiness, Food Consumption/Nutrition/Food Safety,

INVERSE DEMAND RELATIONSHIPS FOR WHEAT FOOD USE BY CLASS

A normalized quadratic input distance system is applied to estimate inverse demand relationships for wheat by class. Semi-nonparametric and Bayesian estimators are used to impose curvature on inputs and outputs. Price flexibilities are estimated for hard red winter, hard red spring, soft red wheat, soft white winter, and durum wheat. Durum wheat is found to be the most price flexible. Economically and statistically important differences in price formation across classes of wheat are found and are supportive of government programs differentiating wheat by class.Demand and Price Analysis,

IMPOSING CURVATURE RESTRICTIONS ON A TRANSLOG COST FUNCTION USING A MARKOV CHAIN MONTE CARLO SIMULATION APPROACH

Using Kansas Farm data from 1973 to 1998, curvature restrictions are imposed on a translog cost function. Using uninformative priors with indicator functions representing distribution and inequality constraints, a Markov Chain Monte Carlo Simulation method is used to estimate parameters and check curvature at each point. Comparison is made to the Cholesky factorization method commonly used with the normalized quadratic functional form.Research Methods/ Statistical Methods,

Input inefficiency in commercial banks: a normalized quadratic input distance approach

A normalized quadratic input distance function is proposed with which to estimate technical efficiency on commercial banks regulated by the Federal Reserve System. The study period covers 1990 to 2000 using individual bank information from the Call and Banking Holding Company Database. A stochastic frontier model is specified to estimate the input normalized distance function and obtain measures of technical efficiency.Banks and banking

Optimal Capital Structure in Centralized Agricultural Cooperatives

Agribusiness,

AN EXAMINATION OF THE EMPIRICAL PROPERTIES OF DUALITY BETWEEN THE RESTRICTED PROFIT, UNRESTRICTED PROFIT, AND PRODUCTION FUNCTIONS

This research examines the empirical properties of duality theory. A comparison of the Hessian matrices calculated from the normalized unrestricted and restricted profit, and production functions indicate that duality is highly sensitive to measurement error and relative price variability. Keywords: duality, restricted and unrestricted profit functionsduality, restricted and unrestricted profit functions, Demand and Price Analysis, Production Economics,

A Nonparametric Efficiency Analysis of Bean Producers from North and South Kivu

The purpose of this research is to determine how technically efficient small-scale producers are in two provinces (North and South Kivu) in the Democratic of Republic (DR) of Congo at producing two different varieties of beans: bush and climbing beans. In addition to calculating the efficiency scores, this research attempts to identify what producer and field characteristics affect these scores. We hypothesize that bean producers will be more productive than producers in South Kivu and that climbing bean producers will be more productive than bush bean producers. Technical efficiency is estimated using a nonparametric approach. A tobit model is used to examine the effect of producer and field characteristic on the efficiency score. On average, farms were 66% technically efficient. North Kivu bean producers and climbing bean producers have, on average, a higher technical efficiency score than their counterparts. Implications from this research suggest that there is room for improvement in the technical efficiency scores for producers in DR of Congo. Based on the results, it may be more productive to continue focusing on improving the yield and nutritional content of climbing beans.Production Economics, Production Economics,

THRESHOLD EFFECTS IN FOOD AND AGRIBUSINESS STOCK PRICE MARKETS

This study investigates the dynamics of agribusiness stock returns and the market return for 22 firms in a switching-regression framework. Threshold levels and regression slopes are estimated and tested. Results indicate how parameters differ for alternative regimes, at what levels dynamic adjustments take place, and the adjustment time involved.Marketing,