The impact of weather on crop yield distribution in Taiwan: Some new evidence from panel data models and implications for crop insurance

Agricultural Economics

Volumn 33, Issue SUPPL. 3, 2005, Pages 503-511

  Chen, Chi Chung ^a   Chang, Ching Cheng ^b  

^a NATIONAL CHUNG HSING UNIVERSITY   (Taiwan)

^b NATIONAL TAIWAN UNIVERSITY   (Taiwan)

Author keywords

Crop insurance; Panel data; Stochastic programming; Unit root test; Weather; Yield response

Indexed keywords

CROP YIELD; DISTRIBUTION SYSTEM; MAXIMUM LIKELIHOOD ANALYSIS; STOCHASTICITY; WEATHER;

ASIA; EURASIA; FAR EAST; TAIWAN;

EID: 33745534810     PISSN: 01695150     EISSN: 15740862     Source Type: Journal    
DOI: 10.1111/j.1574-0864.2005.00097.x     Document Type: Article

References (43)

1. Adams, R. M., McCarl, B. A., Mearns, L. O., 2003. The effects of spatial scale of climate scenarios on economic assessments: an example from U.S. agriculture. Clim. Change 60, 131-148.
2. Ahsan, S. M., Ali, A. G., Kurian, N. J., 1982. Toward a theory of agricultural insurance. Amer. J. Agric. Econ. 64, 520-529.
3. Arellano, M., 1993. On the testing of correlated effects with panel data. J. Econ. 59, 87-97.
4. Bachelet, D., Van Sickle, J., Gay, C. A., 1993. The impacts of climatic change on rice yield: evaluation of the efficacy of different modelling approaches. In: Penning de Vries, F. W. T., Teng, P. S., Metselaar, K. (Eds.), Systems Approaches for Agricultural Development. Kluwer Academic, Dordrecht, The Netherlands, pp. 145-174.
5. Baltagi, B. H., 1995. Econometric Analysis of Panel Data. Wiley, New York.
6. Baltagi, B. H., Li, Q., 1995. Testing AR(1) against MA(1) disturbances in an error component model. J. Econ. 68, 133-151.
7. Bartlett, M. S., 1937. Properties of sufficiency and statistical tests. Proc.R. Soc., Series A, 160, 268-282.
8. Chang, C. C., 2002. The potential impacts of climate change on Taiwan's agriculture. Agric. Econ. 27, 51-64.
9. Chen, C. C., McCarl, B. A., 2000. The value of ENSO information: considerations of uncertainty and trade. J. Agric. Resour. Econ. 25, 368-385.
10. Darwin, R., 2004. Effects of greenhouse gas emission on world agriculture, food consumption, and economic welfare. Clim. Change 66, 191-238.
11. Hardman, L. L., Oplinger, E. S., Doll, J. D., Combs, S. M., 1997. Alternative Field Crops Manual-Adzuki Bean. University of Minnesota Extension Service, St. Paul, MN.
12. Hoogenboom, G., 2000. Contribution of agrometeorology to the simulation of crop production and its applications. Agric. For. Meteor. 103, 137-157.
13. Hossain, M., 1997. Rice supply and demand in Asia: A socioeconomic and biophysical analysis. In: Teng, P. S., Kropff, M. J., ten Berge, H. F. M., Dent, J. B., Lansigan, F. P., van Laar, H. H. (Eds.), Applications of Systems Approaches at the Farm and Regional Levels. Kluwer Academic, Dordrecht.
14. Hsu, H. H., Chen, C. T., 2002. Observed and projected climate change in Taiwan. Meteorol. Atmos. Phys. 79, 87-104.
15. Im, K. S., Pesaran, M. H., Shin, Y., 2003. Testing for unit roots in heterogeneous panels. J. Econ. 115, 53-74.
16. IPCC, 2001. Climate Change 2001: Impacts, adaptation, and vulnerability. In: McCarthy, J. J., Canziani, O. F., Leary, N. A., Dokken, D. J., White, K. S. (Eds.), Contribution of Working Group II to the Third Assessment Report of the Intergovernmental Panel on Climate Change. http://www.grida.no/climate/ipcc_tar/ wg2/491.htm.
17. Judge, G. G., Griffiths, W. E., Hill, R. C., Luthepohl, H., Lee, T. C., 1985. The Theory and Practice of Econometrics. Wiley, New York.
18. Just, R., Pope, R. D., 1978. Stochastic specification of production functions and economic implications. J. Econ. 7, 67-86.
19. Just, R., Weninger, Q., 1999. Are crop yields normally distributed? Amer. J. Agric. Econ. 81, 287-304.
20. Lambert, D. K., McCarl, B. A., He, Q., Kaylen, M. S., Rosenthal, W., Chang, C. C., Nayda, W. I., 1995. Uncertain yields in sectoral welfare analysis: an application to global warming. J. Agric.Appl. Econ. 27, 423-436.
21. Lansigan, F. P., de los Santos, W. L., Coladilla, J. O., 2000. Agronomic impacts of climate variability on rice production in the Philippines. Agric. Ecosyst. Environ. 82, 129-137.
22. Levin, A., Lin, C. F., 1992. Unit Root Tests in Panel Data: Asymptotic and Finite-Sample Properties. Unpublished manuscript, University of California, San Diego.
23. Levin, A., Lin, C. F., 1993. Unit root tests in panel data: new results. Discussion Paper 93-56, University of California, San Diego.
24. Levin, A., Lin, C. F., Chu, C. S., 2002. Unit root tests in panel data: asymptotic and finite-sample properties. J. Econ. 108, 1-24.
25. Lin, C. F., Tsai, C. H., 1994. The statistics and graphical summary of the soil conditions and proper cropping systems in Taiwan's cultivated land. Council of Agriculture, Taipei, Taiwan.
26. Matthews, R. B., Kropff, M. J., Horie, T., Bachelet, D., 1997. Simulating the impact of climate change on rice production in Asia and evaluating options for adaptation. Agric. Syst. 54, 399-425.
27. McCarl, B. A., Spreen, T. H., 1980. Price endogenous mathematical programming as a tool for sector analysis. Amer. J. Agric. Econ. 62, 87-102.
28. Mearns, L. O., Rosenzweig, C., Goldberg, R., 1996. The effect of changes in daily and interannual climate variability on CERES-wheat: a sensitivity study. Clim. Change 32, 257-292.
29. Mearns, L. O., Rosenzweig, C., Goldberg, R., 1997. Mean and variance change in climate scenarios: methods, agricultural applications and measures of uncertainty. Clim. Change35, 367-396.
30. Norton, R. D., Schiefer, G. W., 1980. Agricultural sector programming models: a review. Eur. Rev. Agric. Econ. 7, 229-264.
31. Olesen, J. E., Bindi, M., 2002. Consequences of climate change for European agricultural productivity, land use and policy. Eur. J. Agron. 16, 239-262.
32. Parry, M., Rosenzweig, C., Inglesias, A., Fischer, G., Livermore, M., 1999. Climate change and world food security: a new assessment. Global Environ. Change 9(Suppl.), S51-S67.
33. Quah, D., 1994. Exploiting cross-section variation for unit root inference in dynamic data. Econ. Lett. 44, 9-19.
34. Riha, S. J., Wilks, D. S., Simoens, P., 1996. Impact of temperature and precipitation variability on crop model predictions. Clim. Change 32, 293-311.
35. Saha, A., Havenner, A., Talpaz, H., 1997. Stochastic production function estimation: small sample properties of ML versus FGLS. Appl. Econ. 29, 459-469.
36. Samuelson, P. A., 1952. Spatial price equilibrium and linear programming. Amer. Econ. Rev. 42, 283-303.
37. Segerson, K., Dixon, B. L., 1999. Climate change and agriculture: the role of farmer adaptation. In: Mendelsohn, R., Neumann, J. E. (Eds.), The Impact of Climate Change on the United States Economy, Chapter 4. Cambridge University Press, Cambridge.
38. Smit, B., Yunlong, C., 1996. Climate change and agriculture in China. Global Environ. Change 6, 205-214.
39. Takayama, T., Judge, G. G., 1971. Spatial and Temporal Price and Allocation Models. North-Holland, Amsterdam.
40. Tsvetsinskaya, E. A., Mearns, L. O., Mavromatis, T., Gao, W., McDaniel, L., Downton, M. W., 2003. The effect of spatial scale of climatic change scenario on simulated maize, winter wheat and rice production in the southeastern United States. Clim. Change 60, 37-71.
41. Turvey, C. G., 2001. Weather derivative for specific event risks in agriculture. Rev. Agric. Econ. 23, 333-351.
42. Young, C. E., Vandeveer, M. L., Schnepf, R. D., 2001. Production and price impacts of U.S. crop insurance program. Amer. J. Agric. Econ. 83, 1196-1203.
43. Yu, P. S., Yang, T. C., Chou, C. C., 2002. Effects of climate change on evapotranspiration from paddy fields in southern Taiwan. Clim. Change 54, 165-179.