Kellie Curry Raper

Factors Affecting Adoption of Recommended Management Practices in Stocker Cattle Production

Binary logit regression models were used to estimate factors affecting adoption of recommended management practices. Variables analyzed include aspects of farm structure, human capital, farm objectives, and production system employed by the producer. Results reveal that operation size and dependency upon income from the stocker operation, in particular, influence the adoption of recommended practices. Older producers and those pursuing a year-round production strategy were found to lag in adoption.

On Cyclical Industry Evolution in Agricultural Biotechnology R&D

Over the past twenty years, the R&D-based agricultural biotechnology industry has exhibited cyclical behavior in consolidation. This paper provides a positive, theoretical model of endogenous R&D, in which the number of firms engaged in R&D exhibits cyclical behavior. Additional, empirically testable, behavioral characteristics of the model cycle include: the level of R&D activity is pro-cyclical, mergers and acquisitions activity and the time to discovery of the next innovation are counter-cyclical, and the duration of cyclic peaks (periods of high firm numbers) is short relative to periods of low firm numbers. The implication that the distribution of firm numbers over time is multi-modal is consistent with empirical evidence and is in contrast to studies of firm numbers in other industries. One policy implication is that anti-trust actions in agricultural biotechnology should be based on observed persistent, rather than cyclic, concentration.

Distinguishing the Source of Market Power

Structural models used to measure market power, though widely employed, continue to be criticized. We compare alternative market power tests, including nonparametric and Solow residual-based (SRB) tests. We develop SRB methods that permit nested testing for both monopolistic and monopsonistic market power by the same firm. These tests and a set of nonparametric tests are implemented to examine market power exertion by U.S. cigarette manufacturers from 1977 to 1993. All tests indicate that cigarette manufacturers exerted monopsonistic power in the upstream tobacco market. They are mixed on whether monopolistic power exertion was exerted in the downstream market.

Net Returns from Feeding Cull Beef Cows: The Influence of Initial Body Condition Score

The impact of initial body condition scores on net returns from retaining beef cull cows for delayed marketing was investigated in a three-year experiment. Cows were retained either on native grass pasture or in a low-input dry lot setting. Net returns are examined across five alternative marketing periods, including culling. Sensitivity of net returns to changes in retention cost is also examined. Although a native grass pasture system was generally more profitable than a low-input dry lot system, thin and medium cows were typically more profitable than cows with higher initial body condition score regardless of the feeding system.

The Likelihood of Positive Returns from Value-Added Calf Management Practices

Extension faculty have been educating cow-calf producers about value-added calf management programs and the premiums available at auction from these management practices for years. Despite these efforts, producers express doubt regarding the likelihood of premiums and the profitability of value-added management practices. We use matching pairs to calculate the difference in premiums and net returns between adopters and nonadopters and calculate the likelihood of positive net returns (and premiums) for individual practices and practice bundles. The probability of positive net returns ranges from 57% for dehorning to 79% for a certified vac-45 program (calves certified by a third party to be preconditioned for a minimum of 45 days, vaccinated, and dehorned) and probabilities increase with more practices adopted.

Determining market power exertion between buyers and sellers: are nonparametrics a viable alternative?

A review of recent literature reveals the development of several deterministic non-parametric (DNP) tests of market power. The performance of selected DNP market power tests is ascertained to determine their usefulness as an alternative to data-hungry parametric market power tests. This assessment is carried out through implementation of Monte Carlo experiments using data sets from ten known market structures. Only two of the six DNP tests appear able to satisfactorily identify market power.

Analyzing the Market for Imported Cheese in Mexico

Rapid growth of U.S. dairy exports to Mexico began even before the 1994 North American Free Trade Agreement (NAFTA) and has been fueled by rapid population increases coupled with an expanding Mexican economy. This study uses a nonlinear approximate almost ideal demand system (NLAIDS) to estimate own and cross-price elasticities in the Mexican cheese import market to better understand market behavior and to assess the comparative position of the UnitedStates relative to other cheese market participants. Results of this study imply that attributes of cheese play a strong role in the composition of Mexican cheese import market.

Regional Wholesale Price Relationships in the Presence of Counter-Seasonal Imports

Counter-seasonal imports of fresh produce facilitate year-round availability in the U.S. and may impact the seasonal structure of market price relationships. Vector autoregression analysis is used to determine the nature and extent of spatial price relationships among four geographically distinct regions in the U.S. fresh peach wholesale market. We evaluate differences in regional spatial price relationships and find statistical evidence that price relationships among regions are different in periods dominated by regional domestic supplies imports compared with periods when counter-seasonal imports dominate the market.

Modelling upstream and downstream market power in bilateral oligopoly

ABSTRACT This article develops a general model that estimates market power exertion in a bilateral market relationship for processors and retailers where each may also have market power in their primary input market and output markets, respectively. Monte Carlo experiments are used to generate industry data for market structures such as perfect competition, monopoly, monopsony, bilateral imperfect competition with an integrated processor/retailer, bilateral imperfect competition with separate processor and retailer, and bilateral imperfect competition with four adjacent upstream and downstream markets. Then, new empirical industrial organization models are estimated using the data with models that match the market structure under which the data were generated (true) and with models that reflect alternative market structures (alternative). The general model is derived using the production function approach without imposing the fixed proportion assumption. Monte Carlo simulation results indicate that the general model is preferred to alternative models that presume competitive behaviour by processors in primary input procurement and by retailers in the output market. Results indicate that less flexible models lead to biased market power estimates in the presence of market power in the corresponding input and output markets.

Effects of spatial density on veterinarian income: where are all of the veterinarians?

ABSTRACT With increased numbers of veterinarians in the market, it is critical to understand how this increased competition affects income potential at multiple levels. This study presents an empirical approach that incorporates local and nonlocalised spatial competition of firms into one model. By analysing the market for veterinarians using a spatial weight matrix approach, we are able to quantify localized and nonlocalised competition which assists in defining relevant market areas for veterinarians. Specifically, increased density within their county and surrounding counties decreases veterinarian income. Thus, the potential market area for veterinarians is larger than the local/county market in which they practice. This is important for veterinarians when choosing a location to practice, as they must consider the competition and demand in local and non-local areas.