A point-space model of interregional trade is used to define market integration and to explore its implications for modeling spatial price relationships. This analysis indicates that spatial prices are related nonlinearly, contrary to much of the work on spatial price analysis which uses linear models. As an empirical example, corn market integration along the Mississippi River is examined during the Midwest flood of 1993. Higher transport costs during this period significantly reduced the extent of integration and thereby decreased excess demand shock transference across regions.

Ecosystem management may extend multiple use management, where economists identify and value a complex mix of ecosystem outputs. The dominant theme in conservation biology favors “safe minimum standard” (SMS) constraints on ecosystem attributes, which respond to complex and purely uncertain ecological knowledge and lead economists toward valuation questions that identify “tolerable” constraints. A hierarchical SMS constraint raises substitution possibilities among ecosystem-level components. Economists may identify unavoidable resource tradeoffs, such as in allocating land among elements of a reserve network, particularly when ecological wealth differs among geographically dispersed human communities. Economic and ecological ironies obfuscate intuitive contributions to ecosystem management policy.

By broadening the definition of an ecosystem to include economic activities, can we better characterize the interactions and relationships among agricultural activities and important indicators of ecological system health? This paper addresses research approaches for assessing the role of agriculture in an ecosystems context. Environmental regulation and resource management policies have heightened the interest in understanding interactions among agricultural activities and the natural resource base, including the impacts of agriculture on environmental quality and the impacts on agriculture of ecosystem restoration efforts. What are the most meaningful indicators of environmental quality? Which agricultural practices and policies should be considered, along with which nonagricultural resource uses? Finally, does the evolving thinking about ecosystems permit us to link agricultural practices and policies more directly and meaningfully to conceptions of sustainability, of both natural and socioeconomic systems? This paper presents a brief synopsis of ecosystem management, drawing from several recent governmental initiatives. It then provides an overview of the economics of ecosystem management from the perspective of the role of agriculture; discusses two specific cases, the Pacific Northwest and South Florida; and concludes with a discussion of promising economic approaches, data needs, and caveats to those engaged in policy analysis involving ecosystem restoration.

This paper identifies factors that influence consumers' seafood safety perceptions and examines how these perceptions affect consumers' anticipated consumption when consumers are provided with additional information relevant to seafood. A recursive system of equations is specified describing consumers' safety perceptions as a function of past experience with seafood, recreational harvest activities, and risk-taking behavior, and describing the influence of safety perceptions on consumers' anticipated demand response to hypothetical information concerning seafood. A telephone survey of randomly selected Rhode Island consumers provided data for the analysis.

The transitional period in the development of a new field is often characterized by competing articulations, recourse to philosophy, and a debate over fundamentals (Kuhn 1970). As exemplified by numerous articles and books providing alternative definitions in the recent academic and policy literature, it is clear that the emerging field of ecosystem management is still struggling to identify a shared paradigm. Thus it is not a surprise that, in surveying the ecosystem management literature, Swallow (1996, p. 83) finds this field to be “one of the vaguest ideas or mandates of the decade.” A critical concern is that this debate over definitions may not be resolved in the foreseeable future, inhibiting policy-relevant research progress in this important area.

A conceptual model links agricultural profits, capital gains, interest rates, and property taxes to the sale of agricultural land by profit-maximizing owners. The model motivates an empirical analysis of New Jersey data from 1949 to 1990. Results suggest that nonagricultural considerations may overpower the economic incentives provided by such policies as farmland assessment. Consequently, alternative policies (e.g., purchase of development rights and land use zoning) may be needed to sustain agriculture in rapidly urbanizing areas.

Demand for selected nursery plants sold in North Carolina (i.e., begonia, dianthus, geranium, impatiens, marigold, petunia, and vinca) was found to be affected more by prices than by income, demographic, and other variables. By using cross-sectional data, a modified AIDS model, incorporating demographic variables and quadratic income response, was estimated. Inverse Mills's ratios were also included in the model to correct for selectivity bias, resulting from zero purchases. Significant own-price elasticities ranged from − 0.71 to − 1.65, and income elasticities ranged from − 0.78 to 0.41.

The National Research Council report entitled Colleges of Agriculture at the Land Grant Universities: Public Service and Public Policy was released in spring 1996. Several of the study recommendations may be particularly pertinent and interesting to the land grant colleges of the Northeast. This article reviews the study background, process, and general conclusions. It highlights several specific recommendations of potential interest in the Northeast, including those relating to federal support through formula funds and competitive grants, regionalization of programs, and integrating and balancing teaching, research, and extension.

The 1996 Farm Bill marks a new direction for the government in agriculture. By decoupling payments from price levels for crops, it undermines long-run political support for programs. Dairy price supports will end in 2000, and nutrition programs will be on a separate reauthorization schedule from farm programs. Together, these actions should weaken the farm bill coalition, making the remaining programs much more difficult to reauthorize than in earlier years. The 1996 Farm Bill may be the last farm bill of its kind and the beginning of the end to active government involvement in agricultural markets.

This paper uses search theory to examine the role that risk preference (RP) plays in farmland preservation. Assuming that the distribution of the offer price is fixed, the analysis indicates that risk-averse agents have lower reservation prices than risk-neutral agents, and that agricultural land held by the former exits farming at a faster rate. The results also show that farmland preservation policies which increase reservation prices have a greater capitalization effect if agents are risk-loving, and that such policies, while effectively protecting the interest of land speculators, may be less effective in serving the needs of farming and farm-held open space.

In this paper we estimate the demand for rock climbing and calculate welfare measures for changing access to a number of climbs at a climbing area. In addition to the novel recreation application, we extend the travel cost methodology by combining the double hurdle count data model (DH) with a multinomial logit model of site-choice. The combined model allows us simultaneously to explain the decision to participate and to allocate trips among sites. The application is to climbers who visit one of the premiere rock-climbing areas in the northeastern United States and its important substitute sites. We also estimate a conventional welfare measure, which is the maximum WTP to avoid loss of access to the climbing site.

The decreasing share of production agriculture in the U.S. economy in general and Delaware in particular has raised questions about the amount of government resources being spent on the local agricultural sector. A basic question in the debate is: “What is the real economic contribution of agriculture?” This study looks at the economic role of agriculture in Delaware, presenting different perspectives of what agriculture is and what it contributes to the state economy. Based on three definitions of agriculture, the economic impacts as measured by shares to total employment, output, and value added were estimated using IMPLAN, an input-output modeling software. In each economic impact measure, the share of the local agricultural sector to the total Delaware economy ranged from around 2% to 6% in 1991.

The presence of allocatable fixed inputs may cause truly joint technologies to appear nonjoint in the short run as well as truly nonjoint technologies to appear joint. This paper demonstrates theoretically why this can happen and then documents that it actually occurs in a significant way in aggregate U.S. agricultural production. A simple testing procedure is used that requires no data on input allocations. The important finding is that failure to reject true (apparent) nonjointness does not justify modeling short-run (long-run) supply independent of alternative output prices.

It is a generally known statistical fact that the mean of a nonlinear function of a set of random variables is not equivalent to the function evaluated at the means of the variables. However, in dichotomous choice contingent valuation studies a common practice is to calculate an overall mean (or median) by integrating over offer space (numerically or analytically) an estimated logit or probit function in which sample mean values for the concomitant variables are used. We demonstrate this procedure to be incorrect and we statistically test the procedure against the correct method for nonlinear models. Using data resulting in a well-behaved logit model, we reject the hypothesis of congruence between the two means. Such a finding should be considered in future single response dichotomous choice CVM studies, particularly when aggregation is of interest.

An OLG model with exhaustible resources and solar energy is developed, and equilibrium time paths are characterized numerically using recursive methods. For the parameter values considered, resource prices increase over time, and extractions, output, and utility decline over time until a steady-state is reached. Decreasing the intertemporal elasticity of substitution or raising consumers' subjective discount rate hastens exhaustion of the resource stock. Market equilibrium can result in much quicker use of the stock than social optimality under a constant discount rate, with consequent higher utility for early generations and lower utility for future generations in contrast to social optimality.

This paper develops a methodology to calculate the impact of integrated pest management (IPM) on pesticide use, yields, and farm profits. The methodology is applied to the IPM adoption among fresh market tomato producers in eight states. The method is of general applicability. It accounts for self-selectivity and simultaneity, and the pesticide demand and yield equations are theoretically consistent with a profit function. The results support the notion that fresh market tomato growers who adopt IPM for insects and diseases apply significantly less insecticides and fungicides, respectively, than do those who do not adopt IPM; IPM adoption has an insignificant effect on yields and a small effect on profits.

Agricultural economists' research on price forecasting and marketing strategies has been used little by those in the real world. We argue that fresh approaches to research are needed. First, we argue that we need to adopt a new theoretical paradigm, noisy rational expectations. This paradigm suggests that gains from using price forecasting models with public data or from using a marketing strategy are not impossible, but any gains are likely to be small. We need to conduct falsification tests; to perform confirmation and replication; to adjust research to reflect structural changes, such as increased contracting; and always to conduct statistical tests. We also provide a modest agenda for changing our research and extension programs.

A combined telephone contact-mail booklet-telephone interview of California and New England households regarding their willingness to pay for fire management in California and Oregon's old-growth forests was performed to test hypotheses regarding the spatial extent of the public goods market. Using a multiple-bounded contingent valuation question, the study found that New England households' annual willingness to pay for the California and Oregon programs was statistically different from zero. This analysis points out that households receive benefits from fire protection of old-growth forests in states other than their own. In this case study, limiting the survey sample to state residents where the National Forest is located would reflect about 20% of the national benefits. However, using resident values as a proxy for nonresidents would overstate the national benefits by 75%, since the values per household are significantly different. This finding suggests more emphasis in future surveys on selecting an institutionally and economically relevant sample frame rather than an expedient one.

A content analysis is conducted on the Agricultural and Resource Economics Review the official publication of the Northeastern Agricultural and Resource Economics Association, to determine whether the journal has maintained a strong regional focus and whether there has been a narrow concentration of published articles in subject area and methodology. The results show that in the 1990s (1) the share of articles that do not focus on the Northeast has increased tremendously and (2) more articles used quantitative techniques than nonquantitative methods.

The issue of solid waste management has risen to national prominence in the last decade, fueled by increasing waste disposal costs and changing public attitudes. This situation presents a major opportunity for economists to use their applied microeconomics skills to assist state and local governments manage waste in a cost effective fashion. While findings from formal research efforts may ultimately make their way into the decision-making process, perhaps economists can play an even more significant role in emphasizing the importance of the most basic economic concepts and principles for sound decision making in solid waste management or the many other areas in which local public choices are made. These areas would include at least the following: opportunity cost, marginal analysis of costs and benefits, and the role of economic incentives.