Decision making under unknown true parameters (estimation risk) is discussed along with Bayes and parameter certainty equivalent (PCE) criteria. Bayes criterion provides the solution for optimal decision making under estimation risk in a manner consistent with expected utility maximization. The...

The FAPRI modeling system used for the analysis provides information about the impact of the European Union's (EU) proposed "Agenda 2000" Common Agricultural Policy (CAP) reforms on U.S. crops and livestock sectors, international trade balance, world prices, and on commodity supply and use in...

Concerns about the risk of food supply contamination and the resulting financial losses have limited the development and commercialization of certain pharmaceutical plants. This article develops an insurance pricing model that helps translate these concerns into a cost-benefit analysis. The...

One of the more intriguing alternatives under consideration for the 1995 Farm Bill is the "Iowa Plan." This idea originated with a group of Iowa's farm and commodity organizations. It is receiving increased attention from national farm organizations, academics, and politicians. The basic premise...

Estimation risk occurs in the almost universal situation where parameters of importance for decision making are not known with certainty. Bayes' criterion is the procedure consistent with expected utility maximization in the presence of estimation risk. Three interrelated problems in the...

The efficiency of redistribution and the level of government costs of revenue assurance are compared with current farm programs. The results suggest that a revenue assurance program using a fixed base acreage and actual or county average yields to ensure whole farm revenues could provide a...

We examine the social efficiency of alternative intertemporal permit trading regimes. Banking with a 1-to-1 ratio and with a non-unitary intertemporal trading ratio (ITR) are compared with each other and with the no-banking permit trading regime. The more industry-wide shocks vary, and/or the...

This study examines correlates with aggregate county income growth across the 48 contiguous states from 1990 to 2001. Since visual inspection of the variable to be explained shows a clear spatial relationship and to control for potentially endogenous variables, we estimate a two-stage spatial...

Legislation passed in 1996 changed the way the U.S. federal government acts to reduce risks faced by U.S. crop products. The authors compare the new, alternative forms of revenue insurance to the 1990 deficiency payment program and to a ''no-program'' alternative. They estimate the effects of...

The Export Enhancement Program (EEP) was initiated under the Food Security Act of 1985 to offset the adverse effects of unfair trade practices on U.S. exports and to support U.S. prices. More recently, EEP has been constrained by both GATT and the FAIR Act. This study measures the impacts of the...