Daniel A. Lass

Consumer Benefits from Community Supported Agriculture Membership

Community Supported Agriculture (CSA) is a recent institution in agriculture. In CSA, both the farmer and consumer share the risks and the bounty of farm production. This study focuses on consumer benefits from CSA membership, especially cost savings. To estimate consumer cost savings, quantities of produce in weekly shares for three CSA farms in Massachusetts were measured and retail values calculated. Cost savings were calculated as the differences between share prices and retail values for three CSA operations. Benefits ranged from 60% to 150% of share prices for the CSA farms studied, based on retail prices for organic produce.

The Supply of Off-Farm Labor: A Random Coefficients Approach

A joint model of off-farm labor decisions for farm operator and spouse is presented. Attention is given to operator and spouse participation decisions as well as associated problems of multiple sample selectivity biases. Two-stage fixed and random coefficient methods, corrected for possible selectivity biases, are used to estimate supply function parameters. Results indicate that supply function parameters are random. Variation in important supply parameters is investigated. Results also illustrate the importance of spouse decisions on off-farm labor supply function structure.

Teaching with Technology to Engage Students and Enhance Learning

Teaching technology effects on student learning in a large lecture introductory statistics course were tested. Findings show in-class personal response systems and on-line homework/quizzes significantly improve student exam scores. We infer proven small class techniques, participating in class and doing homework via technologies, can restore sound pedagogy in larger classes. The experiment was conducted using just one class, but factors usually unaccounted for in assessment research were controlled, especially the instructor and other materials. The technologies investigated here can provide learning benefits to students even in larger courses often criticized for their inability to provide students quality learning experiences.

Market Power in Direct Marketing of Fresh Produce: Community Supported Agriculture Farms

CSA farms establish a loyal customer base and, potentially, market power. A new empirical industrial organization (NEIO) approach and survey data from Northeast CSA farms are used to determine whether CSA farms have market power and the extent to which they exercise their market power. Results suggest CSA farms exert about two percent of their potential monopoly power.

External Costs from Increased Island Visitation: Results from the Southern Thai Islands

Recreational development on islands is often subject to open-access conditions. In the absence of control over aggregate visitation levels, external effects among visitors would lead to visitation rates that were too high, relative to efficient rates. Information on the extent of these externalities would be invaluable in developing visitation management plans. In this study the authors surveyed 1,625 visitors to southern Thai Island resorts and estimated the extent of these external effects using a revealed preference analysis of visits to beaches with different characteristics. Our results show that externalities and resource degradation are substantial in this setting and that welfare losses from open access are relatively large.

Corner Solutions in Duality Models: A Cross-Section Analysis of Dairy Production Decisions

Corner solutions are often observed in cross-section samples of farm-level production decisions. An estimation strategy is presented and applied to a uniquely comprehensive data set for Pennsylvania dairy farms. A complete set of choice functions is derived consistent with multiple outputs and multiple inputs, expected profit maximation, and the existence of corner solutions with respect to the labor hiring decision. Results illustrate that substantial estimation bias may occur if the existence of corner solutions is not recognized. Estimated elasticities of choices with respect to input and net output prices indicate substantial responsiveness of choice to price. Results indicate that changes in education and acreage operated result in substantial changes in output and input mixes and that the differences in results for farms, with and without hired labor, are substantial.

Labor Supply Decisions of Rural Low-Income Mothers

Labor force participation is crucial to the economic well-being of low-income rural families. This study identified the factors that influence two decisions that low-income rural mothers make regarding their employment: labor force entry and number of hours supplied to employment. The sample consisted of 412 rural low-income mothers who participated in a multi-state study. The logistic regression model correctly predicted 80 percent of their work participation decisions. Employed rural mothers appeared to be older, better educated, and less likely to suffer from depression compared to those not working. Additionally, they were more likely to have an employed partner, a driver’s license, child care assistance, and Earned Income Tax Credit from the previous year. The estimated labor supply function explained 33 percent of the variation in hours worked by the 208 employed rural mothers. Higher wages, availability of health insurance, and overtime benefits predicted the number of hours that these employed mothers were willing to work.

An economic impact analysis of alternative dairy polices: the case of US and German dairy farms

The problem of dairy market imbalances facing the US government and European Community has led to speculation as to which dairy policy is most effective in controlling dairy surpluses. The focus of this duty is to evaluate the financial impact of alternative dairy policies on representative German (to represent EC farms)and US dairy farms. A new procedure is developed to estimate the dynamic marginal cost of overproducing or underproducing the quota which was allotted to german dairy farmers in 1984 and the corresponding costs for the US farmers if such a supply management systems were to be imposed on US farms. The result show substantial differences in the economic and financial performances among the five farms representing the major dairy regions in the US and three German farms classified by size. The estimated costs of over- and under-quota production indicate that producers are better off producing over the quota rather than under the quota except for the large US dairy farms which have different t...