Concern over the effects of public policies based on misspecified econometric models motivates interest in a procedure to test, diagnose, and improve the specification of models that have been estimated with three-stage least squares. A test of system-wide specification based on Hausman's specification test is employed in a test of the a priori restrictions placed on the parameters of a structural model of the U.S. shrimp market. The null hypothesis of proper specification is rejected. After diagnosis via a comparison of unrestricted and restricted reduced forms and respecification, the null hypothesis cannot be rejected.

Attention is now focused upon problems confronting our Nation in the area of environmental pollution. There is a close correlation between industrial and agricultural expansion and increases in population over the last few decades. There is also a pronounced association between increases in population and the magnitude of pollution problems. As an example, there is some concern about environmental pollution associated with power production which is rapidly expanding to meet the demands for electricity of an increasing population and industrial complex. Power production expansion is occurring largely in areas which already have high population densities.

ICEASE (Irrigation Cost Estimator and System Evaluator) is a microcomputer model designed and developed to meet the need for conducting economic evaluation of adjustments to irrigation systems and management techniques to improve the use of irrigated water. ICEASE can calculate the annual operating costs for irrigation systems and has five options that can be used to economically evaluate improvements in the pumping plant or the way the irrigation system is used for crop production.

The behavior of agricultural commodity markets can arguably result in markedly asymmetric price cycles, that is, downward cycles of substantially different length and breadth than upward cycles. This study assesses whether asymmetric-cycle models can enhance the understanding of the dynamics and provide for a better forecasting of U.S. soybeans and Brazilian coffee prices. The forecasts from asymmetric cycle models are found to be substantially mode precise than those obtained from standard autoregressive models. The asymmetric cycle models also provide useful insights on the markedly different dynamics of the upward vs. the downward cycles exhibited by the prices of these two commodities.

Typically, marketers define market segments by their demographic characteristics, assuming that these segments represent consumers with relatively homogeneous buying patterns. A more managerially useful definition, however, groups consumers of similar behavior directly and then seeks to find demographic commonalities among them. This study uses a latent class analysis technique to segment consumers based on their responsiveness to a set of marketing variables, finding that a multiple-segment model provides a better fit to the data, and that these segments differ significantly in their responsiveness. By targeting marketing activities to their most responsive segments, the efficiency of commodity promotion can be dramatically improved.

In the fields of agriculture and resource economics, good economics is predicated by good science. By partnering more with physical scientists, economists will be better able to provide the broad policy-making community with practical recommendations for addressing resource issues. An example of collaboration is presented for the development of environmental indicators of the potential risk to the environment of die loss of pesticides from farm fields, which will be used by economists to adjust conventionally measured agricultural output for water quality impacts associated with agricultural production.

This article challenges the traditional model of the economist as a humble technocrat who simply provides analysis given the preferences of policy decision-makers. Since decision-makers rarely reveal their preferences, it is important that the would-be policy research/analyst know the political economy and be willing to identify potential performance goals for society. Researchers who are willing to incur the transaction cost associated with becoming involved in useful policy research must learn to work within the imperfect policy process. Policy research that considers the importance of implementation and that acknowledges the institutions and the history will have the highest chance of being useful to policy-makers.

In past decades, agricultural policy was always thought of as policy toward farmers who produce our food and fiber or other rural people who depend on farmers for their livelihood. Accordingly, past policies were translated into programs of research, education, electrification, price supports, and related commodity programs.

After a time, it was realized that many farmers did not benefit from price and income programs in particular. They lacked the resources to enter the commercial market through which price programs operated. It was decided that the problems facing these people called for credit and other special programs to help them graduate into the commercial field.

Researchers as well as planners have been concerned with the impact of augmenting an existing recreation system with new recreational areas. That is, they are concerned with the substitution or duplication of services stemming from additional numbers of recreational areas.

The willingness to plant identity preserved (IP) crops was examined using Mississippi soybean producers as an example. A contingent valuation framework was used to assess the impacts of offered premiums on a producer's probability of planting IP soybeans. Findings suggest that offered premiums significantly affect planting decisions. In addition, desire to learn more about IP production was found to increase the probability of planting, suggesting that desire to learn leads to experimentation. Finally, prior knowledge or experience planting IP crops significantly decreased the probability of planting.

The federal government program for wetlands regulation is administered by the United States Army Corps of Engineers pursuant to Section 404 of the Clean Water Act. Proposals for amending and/or reforming the Section 404 program are included in Congressional deliberations regarding Clean Water Act reauthorization. Specific issues of public policy include the definition of “waters of the United States”, criteria for delineation of jurisdictional wetlands, definition of activities exempt from regulation, mitigation and classification of wetlands, and issues of property rights.

Production function models for cotton lint yields, seed yields, turnout, and lint quality characteristics are developed for the Texas High Plains. They are used to evaluate the impacts of quality considerations and of climate/weather information on the management decisions and on the profitability and risk of irrigated cotton production systems. It is concluded that both quality considerations and improved climatic/weather information could have substantial effects on expected profitability and risk. These effects mainly occur because of changes in optimal variety selection and irrigation water use levels. Quality considerations in particular result in significantly lower irrigation water use levels regardless of the climate/weather information assumption, which has important scarce-resource use implications for the Texas High Plains.

Remarkable changes have occurred over the years in the domestic andinternational economic environment of the fruit and vegetable industry.These changes are partly driven by the North American Free Trade Agreement,nutrition policies, and development and enforcement of new food safetystandards. The articles in this invited session examined the effect of thesedrivers and their implication on the future competitiveness of the southernfruit and vegetable industry.

An analysis of the characteristics of farm businesses by size of FCS direct lending association suggests that further consolidation of FCS lending should have limited negative impacts on credit availability. Commercial-sized farm businesses with FCS real estate debt appeared similar to those who obtained credit from competing lenders, but smaller associations and those with fewer stockholders per branch appeared to serve larger and more wealthy commercial-sized farms.

Although interest in cross-disciplinary research is not new, expressions of the importance of collaboration are increasing. A focus on agricultural sustainability issues, which explicitly recognizes the links among agricultural production activities, the environment, and communities, is an example of this interest. Among agricultural economists, a 1996 Council on Food, Agriculture, and Resource Economics (C-FARE) survey regarding professional priorities indicated that the profession overwhelmingly (92%) believes there is a need for more cross-disciplinary collaboration. This view is common across all sciences (physical and social), and not limited to the agricultural sciences.

Financing local public goods is a major issue in many communities, especially those that have experienced rapid growth. This paper analyzes problems associated with locally collected real property taxes where the real property tax base is only revaluated at long time intervals. Using counties in North Carolina as the subject of the analysis, we find that effective real property tax rates fall between revaluations. We calculate that a system of taxing market values of real property at a constant legislated tax rate would have yielded additional annual revenues of $320 million for North Carolina counties over 1980 to 1995.