this study considers the price transmission mechanism between farm and retail levels of beef market in east azerbaijan with weekly prices over 1377:1 to 1390:52 periods. to this end, using advantages of multivariate models, hansen- seo (2002)'s two- regime threshold vector error correction model (tvecm) was estimated by the maximum likelihood approach for evaluate the price transmission me...

INCE 1974, FOLLOWING PUBLICATION of Schuh’s “The Macroeconomics of Agriculture,” much research effort has been devoted to determining whether and how monetary policy affects the farm sector. One of the more active areas of interest has been the question of whether changes in the money stock affect the farm! nonfarm product relative price ratio. The reason for this particular interest, as descri...

The Dixit entry/exit real option model was applied to the entry/exit decisions of New York dairy farmers. For the cost structure of a 500-cow farm the entry milk price is $17.52 per hundredweight (cwt.) and the exit milk price is $10.84. For the 50-cow farm cost structure the entry price is higher at $23.71 per cwt., and the exit price is also higher at $13.48. If infinite numbers of representa...

The Australian dollar is considered primarily a commodity-based currency. The high level of commodity-based exports in Australia’s trade balance is given as an explanation. Accordingly changes in world commodity prices should bring commensurate changes in the value of the Australian dollar, such that changes in world commodity prices are only partially transmitted to the Australian economy and ...

The use of N fertilizer in agriculture is a major source of Nitrous Oxide, an important greenhouse gases. Market-based instruments, such as incentives or taxes, may help reduce Nitrous Oxide emission by changing Nitrogen application rate. Using a dynamic programming approach, we found that changing corn price or fertilizer price have effects on both farm profit and Nitrogen application rate. Ho...

Private sector research and development (R&D) in food processing has seen a growing share of agricultural R&D. This paper analyzes market and technological links between farmer-entrepreneurs and food processing firms. It is shown that processing sector R&D tends to display explosive cycles. To avoid explosive cycles, the processing sector sets the R&D growth path and its target. Dynamic adjustm...

Policies to mitigate greenhouse gas emissions are likely to increase the prices for fossil fuel based energy. Higher energy prices would raise farmers' expenditure on machinery fuels, irrigation water, farm chemicals, and grain drying. To compute the economic net impacts of increased farm input costs on agricultural production after market adjustment, we employ a price endogenous sector model f...

Highly pathogenic avian influenza (HPAI) is often controlled through culling of poultry. Compensating farmers for culled chickens or ducks facilitates effective culling and control of HPAI. However, ensuing price shifts can create incentives that alter the disease dynamics of HPAI. Farmers control certain aspects of the dynamics by setting a farm size, implementing infection control measures, a...

Farm households in developing countries are generally credit constrained. This forces them to simultaneously take production and consumption decisions. In this paper, a two-period lifecycle model of the farm household is constructed and the household’s investment response to changes in land and agricultural output prices are derived theoretically. It is shown that in the absence of credit marke...