Eldon D. Smith

Estimating Linear Probability Functions: A Comparison of Approaches

A linear probability function permits the estimation of the probability of the occurrence or non-occurrence of a discrete event. Nerlove and Press (p. 3–9) outline several statistical problems that arise if such a function is estimated via OLS. In particular, heteroskedasticity inherent in such a regression model leads to inefficient estimates of parameters (Amemiya 1973, Horn and Horn). Moreover, without restrictions on the conventional OLS model, probability estimates lying outside the unit (0–1) interval are possible (Nerlove and Press). Goldberger and Kmenta suggest two approaches for alleviating the heteroskedasticity problems inherent in the OLS regression model. Logit analysis will also alleviate heteroskedasticity problems and ensure that estimated probabilities will lie within the unit interval (Amemiya 1974, Hauck and Donner, Hill and Kau, Horn and Horn, Horn, Horn, and Duncan, Theil 1970).

Agricultural Marketing Research for Less-Developed Areas

Marketing problems are viewed in relation to developmental objectives and conditions found in less-developed countries. Underdeveloped infrastructures, intersectorial relations, and developmental objectives may make transferability of developed country concepts and formulations to LDCs questionable. Market performance criteria should be logically related to strategic developmental variables.

Cost Effective Programs of Rural Community Industrialization.

Abstract The advisability of developing programs to attract manufacturing industry involves several considerations. Included are: (1) the chances of success of the programs as affected by locational factors and existing community characteristics; and (2) ability to select relatively cost‐effective strategies. Information from a two‐state statistical study provides a basis for evaluating the effectiveness of community actions including development of high quality plant sites, industrial bond financing and improved financial support to schools. With the statistical model it is possible to estimate chances of success with and without such community efforts for communities with various combinations of locational and other nonmodifiable advantages and disadvantages.

Methodology for Agricultural Economists: An Instrumentalist Perspective

As an instrument for refining judgments of the adequacy of hypothesis validation procedures, neo-falsificationist methodology has important value. Appeals to principles of rhetoric, metaphysics, and literary criticism obfuscate the logical foundation for judging the evidential basis for validity. Falsificationist and positivist methodology are insufficient to facilitate the processes of systematic critique of theoretical systems in their proper role as functioning means for directing the hypothecation and testing processes. Instrumentalist methodology makes such criticism integral to an ongoing, problem-focused scientific inquiry process, thereby fostering theoretical and empirical research progressiveness. Copyright 1996, Oxford University Press.

LOCAL MARKET INFORMATION SERVICES IN THE STRATEGY OF AGRICULTURAL DEVELOPMENT

The general economic functions of market information are familiar and can be logically related to the concepts of workable competition and the perfect market in space, form, and time. However, the importance of a formal market news service to the efficiency of performance of markets must be viewed within the context of the particular situation and the manner in which present information systems function. Wherever there is a market, an information network exists, even though (in some cases), slow, inaccurate, discriminatory in its availability to market participants or limited in the scope of information collected and diffused. Therefore, in assessing the need for introducing or expanding formal market news services, the adequacy of the present system, the cost of effecting improvements and the consequences that may be derived from them must be determined and evaluated.

Pricing in Kentucky Fertilizer Markets

This article analyzes the empirical results of a study of the relation of selected structural elements to price determination in eight Kentucky retail fertilizer markets. Multiple regression analysis indicated that at-farm fertilizer price was significantly associated with buyer knowledge and deliberativeness, cooperative purchasing and number of seller firms; but not significantly associated with number of farms, size of purchases, number of purchases and distance. The results suggest that models analyzing prices at the farm level can be significantly improved by including relevant dimensions of buyer knowledge and farmer decision-making processes as structural elements.

Foreign Language Requirements in Ph.D. Programs in Agricultural Economics

Evidence suggests that the foreign language requirement, while consuming a large block of student time, has not functioned well in providing needed professional skills. The low skill levels resulting from these programs have declined to nonfunctional levels in a majority of cases, have concentrated on less important reading skills rather than verbal skills, and have been predominantly in languages which are not needed by the professional worker whose primary needs are now—and will be in the future—for work in foreign areas outside of Western Europe. Evidence suggests the desirability of concentrating on verbal skills (fluency) in one language in instances where language needs can be anticipated and substituting proficiency in collateral fields when specific linguistic needs cannot be anticipated.