A Structural Econometric Model of Consumer Demand at Pick-Your-Own Fruit Operations

This paper develops a fully structural econometric consumer demand model for goods which have time and monetary costs, and where time spent obtaining the goods also enters into the utility function. The model is used to analyze customers' decision to buy pick-your-own versus pre-harvested fruit at North Carolina pick-your-own fruit operations. The empirical application distinguishes the double effect of time as a resource constraint and also providing utility. Elasticity estimates show that strawberries sold at pick-your-own operations are price elastic, with pick-your-own fruit being less price elastic than pre-harvested fruit.Consumer/Household Economics,

To Fund or Not to Fund: Assessment of the Potential Impact of a Regional Promotion Campaign

This paper develops a framework for assessing the potential economic impact of a regional promotion campaign combining contingent valuation methods with a partial displacement equilibrium model. The proposed approach is applied to the evaluation of the potential economic impact of the locally grown campaign in South Carolina. Results reveal that the first season of the promotion campaign increased consumer willingness to pay for produce by 3.4%. The change in consumer preferences and the corresponding shift in demand increased producer surplus by $3.09 million. This economic benefit, combined with the 2007 promotion campaign investment, resulted in a benefit-cost ratio of 6.18.contingent valuation, economic impact, equilibrium displacement model, regional promotion campaign, Consumer/Household Economics,

Premium Estimation Inaccuracy and the Actuarial Performance of the US Crop Insurance Program

This article explores the impact of the likely levels of inaccuracy associated with two main types of premium estimation methods, under different sample sizes, on the actuarial performance of the US crop insurance program. The analyses are conducted under several plausible assumptions about the insurer versus the producers’ estimates for their actuarially fair premiums. Significant differences are found due to estimation method and sample size, with the currently used procedures resulting in the worse actuarial performance. Several conclusions and recommendations are provided that could markedly reduce the amount of public subsidies needed to keep this program solvent.Agricultural Subsidies, Crop Insurance Premium Estimation, Loss-Cost Procedures, Risk Management Agency, Financial Economics,

Measuring the Potential Economic Impact of a Regional Agricultural Promotion Campaign: The Case of South Carolina

This study evaluated the impact of the South Carolina (SC) agricultural promotion campaign after its first season. Analysis of the survey data revealed that consumer demand for state grown produce has increased by 3.4% which could result in an increase in producer surplus of $2.9 million. Since the SC Department of Agriculture invested$500,000 in the promotion program in 2007, this figure indicates a benefit-cost ratio of 5.8.Demand for local products, state branding and promotion programs, contingent valuation, equilibrium displacement models, Agribusiness, Agricultural and Food Policy, Demand and Price Analysis,

Household Consumption of Snacks at Home and Away from Home

This study identifies how key economic and demographic variables affect U.S. households' expenditures on snacks.demand analysis, Food Consumption/Nutrition/Food Safety,

Relative Importance of Environmental Attributes Using Logistic Regression

We investigate the problem of determining the relative importance of attributes in the discrete choice setting. Four alternative methods of extracting the relative importance of attributes are considered. The empirical application involves the development of a risk index system for individual herbicides combining the information on the herbicides' different human and environmental risks. The values of the pesticide risk indices are found to be consistent across the different methods.Environmental Economics and Policy,

Potential for Tradable Water Allocation and Rights in Jordan

This paper estimates the costs of buying water use rights from farmers located in the Mafraq-Azraq basin in Jordan. Farmers’ water supply curve is estimated using data gathered from a contingent valuation survey. Estimation results indicate that a total supply of 29 million m3 could be periodically purchased from farmers at an annual price of approximately JD 0.23/m3 (1 JD ≈ 0.70 U.S. dollars), or a total cost of about JD 6.8 million per year.Contingent valuation, non-parametric estimation, water supply curve, Research Methods/ Statistical Methods, Resource /Energy Economics and Policy,

Can Crop Insurance Premiums Be Reliably Estimated?

This paper develops and applies a methodology to assess the accuracy of historical loss-cost rating procedures, similar to those used by the U.S. Department of Agriculture’s Risk Management Agency (RMA), versus alternative parametric premium estimation methods. It finds that the accuracy of loss-cost procedures leaves much to be desired, but can be markedly improved through the use of alternative methods and increased farm-level yield sample sizes. Evidence suggests that the high degree of inaccuracy in crop insurance premium estimations through historical loss-cost procedures identified in the paper might be a major factor behind the need for substantial government subsidies to keep the program solvent.agricultural subsidies, crop insurance premium estimation, loss-cost procedures, Risk Management Agency, Agricultural and Food Policy, Agricultural Finance, Farm Management, Risk and Uncertainty,

Promoting a local brand: Assessing the Economic Benefits of the Texas Superstar® and Earth-Kind® Promotion on Place (POP) Program

This paper aims to evaluate consumer’s awareness and willingness-to-pay (WTP) for two ornamental brands in Texas: Texas Superstar® and Earth-Kind®, after a Promotion on Place (POP) Program was developed by the Texas Department of Agriculture (TDA). Consumer’s characteristics that are more likely to influence brand awareness and WTP are identified.Brand recognition, Willingness to pay, Consumer preferences, Ornamentals, Consumer/Household Economics, Marketing,

ECONOMIC VALUE OF THE CARBON SINK SERVICES OF TROPICAL SECONDARY FORESTS AND ITS MANAGEMENT IMPLICATIONS

This paper explores the economic feasibility secondary forest regeneration and conservation as an alternative to help address global warming. Detailed measurements of tropical secondary forests through time, in different ecological zones of Costa Rica, are used for estimating carbon storage models. The paper addresses key issues in the international discussion about cross- and within-country compensation for carbon storage services and illustrates a method to compute/predict their economic value through time under a variety of scenarios. The procedure is applicable to other developing countries where secondary forest growth is increasingly important.Tropical Forests, Carbon Sequestration, Global Warming, Activities Implemented Jointly., Environmental Economics and Policy, Resource /Energy Economics and Policy, Q23, Q25, Q28.,