AN ANNOTATIVE BIBLIOGRAPHY OF RESEARCH ON THE ECONOMIC EFFECTS OF CLIMATE CHANGE ON AGRICULTURE

Anthropogenic emissions of carbon dioxide and other "greenhouse" gases have the potential to substantially warm climates worldwide. While the timing and magnitude of global warming is uncertain, scientists on the Intergovernmental Panel on Climate Change (IPCC) predict that average global temperature may increase by 1.5- 4.5³C (2.7-8.1³F) over the next 100 years. Changes in precipitation will likely accompany any changes in temperature. However, the magnitude, and even direction of these changes is difficult to predict with much confidence on a regional basis. The agricultural sector may be profoundly affected by future changes in temperature, precipitation, solar radiation, and carbon dioxide concentrations. Over the past decade, there has been a growing body of research examining the potential impacts of climate change on agriculture. The purpose of this paper is to report and summarize recent research on the potential economic impacts of global climate change on agriculture. To that end, an annotative bibliography of articles is presented in this paper.Environmental Economics and Policy,

MARKET IMPACTS OF BOVINE SOMATROPIN: A SUPPLY AND DEMAND ANALYSIS

The potential economic impacts of the introduction of bovine somatotropin (bST) on U.S. milk supply and demand are analyzed using a national model of Class I and Class II milk markets. The results indicate that the introduction of bST will lead to lower milk prices, higher milk production, and larger government purchases of dairy products. Unlike previous economic analyses of bST, this analysis considers both supply and demand effects of bST. The implication is that studies that ignore potential demand-side effects may produce misleading results.Demand and Price Analysis,

Estimating Asymmetric Advertising Response: An Application to U.S. Nonalcoholic Beverage Demand

We propose a regime-switching model that allows demand to respond asymmetrically to upward and downward advertising changes. With the introduction of a smooth transition function, the model features smooth rather than abrupt parameter changes between regimes. We apply the model to nonalcoholic beverage data in the United States for 1974 through 2005 to investigate asymmetric advertising response. Results indicate that a decrease in milk advertising had a more profound impact on milk demand than an increase did. An increase in milk advertising had no impact on milk demand, but a decrease could have an own-advertising elasticity up to 0.049.asymmetric advertising response, demand system, negative asymmetry, nonalcoholic beverage demand, positive asymmetry, regime switching, smooth transition function, Agribusiness, Demand and Price Analysis, Food Consumption/Nutrition/Food Safety, C32, M37, Q11,

Investigating Coupon Effects on Household Interpurchase Behavior for Cheese

In this study, a market segmentation approach is developed and applied to analyze U.S. household cheese purchases. The segmentation is based on household interpurchase time or the hazard rate of purchases. The hazard rate for a household belonging to a given segment is a function of household demographic and marketing-mix variables, and its baseline is assumed to follow a Weibull distribution. The model is flexible and is able to yield increasing, decreasing, or constant hazard rate functions. Four segments have been discovered in the U.S. household cheese purchase market. Two of the segments contain about 40% of the cheese purchase households, which are frequent buyers with an average interpurchase time of 2 weeks. These frequent cheese purchase households are larger in size, with higher income, less proportion of African Americans, and are insensitive to coupons. They are often referenced in the marketing literatures as loyal customers. In contrast, the other two segments contain about 60% of the households, which are infrequent buyers with an average interpurchase time of 6 weeks. These infrequent cheese purchase households are smaller in size, with lower income, higher proportion of African Americans, and are sensitive coupons. The infrequent purchase households are usually the targets of marketing promotions.Consumer/Household Economics,

IMPERFECT COMPETITION MODELS AND COMMODITY PROMOTION EVALUATION: THE CASE OF U.S. GENERIC MILK ADVERTISING

This article examines whether the assumption of perfect competition in the U.S. dairy industry biases the findings of economic impacts of generic dairy advertising. An imperfect competition model based on an approach similar to that of Appelbaum is developed and used to evaluate generic milk advertising. The results are compared with a perfect competition model. The findings indicate positive price and quantity impacts due to generic advertising. The differences in magnitude of impacts between the two models are small, suggesting that the assumption of perfect competition for U.S. dairy models is plausible.Evaluation, Generic milk advertising, Imperfect competition model, Marketing,

EGG ADVERTISING, DIETARY CHOLESTEROL CONCERNS, AND U.S. CONSUMER DEMAND

A model of the domestic demand for eggs was estimated from quarterly data over the period 1987 through 1995, incorporating an index of consumer dietary cholesterol concerns and generic advertising efforts by the American Egg Board and the California Egg Commission. Empirical results indicated that most of the observed change in egg demand could be explained by dietary cholesterol concerns. Simulating the model in a constant elasticity supply framework demonstrated that advertising efforts over the past several years have resulted in net benefits to egg producers largely when considering inelastic supply responses. However, considering trade bias reduces these benefit-cost ratios substantially.Consumer/Household Economics, Demand and Price Analysis,

EDUCATIONAL FINANCE: AN EXAMINATION OF POLICY

Public Economics,

ON IMPROVING ECONOMETRIC ANALYSES OF GENERIC ADVERTISING IMPACTS

It is possible to obtain robust estimates of structural parameters using observational data, but it is difficult to do so. Necessary, but not sufficient, conditions are to adopt a modeling philosophy and to undertake a comprehensive evaluation of the results. Using a general-to-specific modeling philosophy, we obtained stable estimates of the long-run advertising elasticity for fluid milk. This result contrasts with an earlier, published model which did not provide stable estimates as new data points became available. It is difficult, however, to apply the general-to-specific modeling approach because it requires the researcher to specify an initial general model. But analysts are unlikely to agree on this initial model, and if this is true, then the "generality" of the model is in question. Moreover, it is a fact that the quality of the available data is sometimes insufficient to obtain the desired stable estimates.Marketing,