Estimating investment rigidity within a threshold regression framework: The case of U.S. hog production sector

American Journal of Agricultural Economics

Volumn 89, Issue 1, 2007, Pages 36-51

  Boetel, Brenda L ^a   Hoffmann, Ruben ^b   Liu, Donald J ^c  

^a UNIVERSITY OF WISCONSIN RIVER FALLS   (United States)

^b SWEDISH UNIVERSITY OF AGRICULTURAL SCIENCES   (Sweden)

^c UNIVERSITY OF MINNESOTA   (United States)

Author keywords

Asset fixity; Inaction regime; Investment asymmetry; Threshold model

Indexed keywords

AGRICULTURAL ECONOMICS; INVESTMENT; LIVESTOCK FARMING; REGRESSION ANALYSIS;

NORTH AMERICA; UNITED STATES;

SUIDAE;

EID: 33846929699     PISSN: 00029092     EISSN: 14678276     Source Type: Journal    
DOI: 10.1111/j.1467-8276.2007.00961.x     Document Type: Article

References (42)

1. Abel, A.B., and J.C. Eberly. 1994. "A Unified Model of Investment under Uncertainty." American Economic Review 84:1369-84.
2. Akerloff, G. 1970. "A Market for Lemons: Quality Uncertainty and the Market Mechanism." Quarterly Journal of Economics 84:488-500.
3. Andrews, D.W.K., and W. Ploberger. 1994. "Optimal Tests when a Nuisance Parameter is Present Only under the Alternative." Econometrica 62:1383-414.
4. Arrow, K.J. 1968. "Optimal Capital Policy with Irreversible Investment." In J.N. Wolfe, ed. Value, Capital and Growth, Essays in Honour of Sir John Hicks. Edinburgh: Edinburgh University Press.
5. Bai, J. 1997. "Estimation of a Change Point in Multiple Regression Model." Review of Economic and Statistics 79:551-63.
6. Boetel, B.L., R. Hoffmann, and D.J. Liu. 2004. "Estimating Investment Rigidity within a Threshold Regression Framework: The Case of U.S. Hog Production Sector. " Staff Paper P04-12, Department of Applied Economics, University of Minnesota, Minneapolis.
7. Center for Farm Financial Management, University of Minnesota. 2004. FinBin. Available at http://www.finbin.umn.edu/ LivestockEnterpriseAnalysis/
8. Chambers, R.G., and U. Vasavada. 1983. "Testing Asset Fixity for U.S. Agriculture." American Journal of Agricultural Economics 65:761-69.
9. Chang, C.C., and S.E. Stefanou. 1988. "Specification and Estimation of Asymmetric Adjustment rates for Quasi-fixed Factors of Production." Journal of Economic Dynamics and Control 12:145-51.
10. Chavas, J.-P. 1994. "Production and Investment Decisions under Sunk Cost and Temporal Uncertainty." American Journal of Agricultural Economics 74:114-27.
11. Chavas, J.-P. 1999. "On the Economic Rationality of Market Participants: The Case of Expectations in the U.S. Pork Market." Journal of Agricultural and Resource Economics 24:19-37
12. Dickey, D.A., and W.A. Fuller. 1979. "Distribution of the Estimators for Autoregressive Time Series with a Unit Root." Journal of American Statistical Association 74:427-31.
13. Dixit, A.K., and R.S. Pindyck. 1994. Investment under Uncertainty. Princeton, NJ: Princeton University Press.
14. Edwards, C. 1959. "Resource Fixity and Farm Organization." Journal of Farm Economics 41:747-59.
15. Federal Reserve Bank of Dallas. 2006. Available at http://dallasfed.org/ data/data/rmgnb1m.tab.htm
16. Federal Reserve Bank of Minneapolis. January, 1999. Fedgazette. 11 (1).
17. Hansen, B.E. 1996. "Inference when a Nuisance Parameter Is Not Identified under the Null Hypothesis." Econometrica 64:413-30.
18. Hansen, B.E. 1999. "Threshold Effects in Non-Dynamic Panels: Estimation, Testing, and Inference." Journal of Econometrics 93:345-68.
19. Hansen, B.E. 2000. "Sample Splitting and Threshold Estimation." Econometrica 68:575-603.
20. Hollinger, F. 2004. Financing Agricultural Term Investments. Agricultural Finance Revisited No. 7, Rome: FAO/GTZ.
21. Holt, M.T., and S.R. Johnson. 1988. "Supply Dynamics in the U.S. Hog Industry." Canadian Journal of Agricultural Economics 36:313-35.
22. Howard, W.H., and C.R. Shumway. 1988. "Dynamic Adjustment in the U.S. Dairy Industry." American Journal of Agricultural Economics 70:837-47.
23. Hsu, S.H., and C.C. Chang. 1990. "An Adjustment-Cost Rationalization of Asset Fixity Theory." American Journal of Agricultural Economics 72:298-308.
24. Johnson, G.L. 1956. "Supply Function-Some Facts and Notions." In E.O. Heady, H.G. Diesslin, H.R. Jensen, and G.L. Johnson, eds. Agricultural Adjustment Problems in a Growing Economy. Ames, IA: Iowa State University Press, pp. 74-93.
25. Johnson, G.L., and L.C. Quance. 1972. The Overproduction Trap in U.S. Agriculture. Baltimore: Johns Hopkins University Press.
26. Lucas, R.E. Jr. 1967. "Optimal Investment Policy and the Flexible Accelerator." International Economic Review 8:78-85.
27. Luh, Y.H., and S.E. Stefanou. 1991. "Productivity Growth in U.S. Agriculture under Dynamic Adjustment." American Journal of Agricultural Economics 73:1116-25.
28. Merlo, C. 1999. "Hogging the Market." Washington DC: U.S. Department of Agriculture (USDA), Rural Development, Rural Cooperatives, May/June: Pp. 8-14. Available at http://www.rurdev.usda.gov/rbs/pub/ may99/may99.pdf
29. Mundlak, Y. 2001. "Production and Supply." In B.L. Gardner and G.C. Rausser, eds. Handbook of Agricultural Economics, Volume 1A, Agricultural Production, Amsterdam: Elsevier, pp. 4-85.
30. National Pork Producers Council (NPPC). 2002. Available at http://www.nppc.org/hot_topics/USporkexports.html http://www.nppc.org/about/pork_today.html
31. Nelson, C.H., J.B. Braden, and J.S. Roh. 1989. "Asset Fixity and Investment Asymmetry in Agriculture." American Journal of Agricultural Economics 71:970-9.
32. Oude, Lansink A., and S.E. Stefanou. 1997. "Asymmetric Adjustment of Dynamic Factors at the Firm Level." American Journal of Agricultural Economics 79:1340-51.
33. Pietola, K.S., and R.J. Myers. 2000. "Investment under Uncertainty and Dynamic Adjustment in the Finnish Pork Industry." American Journal of Agricultural Economics 82:956-67.
34. Taylor, T.G., and M.J. Monson. 1985. "Dynamic Factor Demands for Aggregate Southeastern United States Agriculture." Southern Journal of Agricultural Economics 17(2):1-9.
35. Thijssen, G. 1994. "Supply Response and Dynamic Factor Demand of Dutch Dairy Farms." European Review of Agricultural Economics 21:241-58.
36. U.S. Department of Agriculture (USDA), Economic Research Service (ERS). 1991. Farm Employment and Wage Rates 1910-1990. Statistical Bulletin 822. Washington DC, March.
37. U.S. Department of Agriculture (USDA), Economic Research Service (ERS). Various issues, 1970-2004. Livestock, Dairy and Poultry Situation and Outlook. Washington DC. Available at http://usda.mannlib.cornell.edu
38. U.S. Department of Agriculture (USDA), Economic Research Service (ERS). 2004. Red Meats Yearbook. Washington DC, July. Available at http://www.ers.usda.gov/data/sdp/view.asp?f=livestock/94006/
39. U.S. Department of Agriculture (USDA), National Agricultural Statistics Service (NASS). Available at http://usda.mannlib.cornell.edu/
40. U.S. Department of Agriculture (USDA), National Agricultural Statistics Service (NASS). Various issues, 1970-2004. Hogs and Pigs Report. Washington DC, December. Available at http://usda.mannlib.cornell.edu/
41. U.S. Department of Agriculture (USDA), National Agricultural Statistics Service (NASS). Various issues 1995/96-2004/05. Statistical Highlights of US Agriculture. Washington DC. Available at http://www.usda.gov/nass/ pubs/pubs.htm
42. Vasavada, U., and R.G. Chambers. 1986. "Investment in U.S. Agriculture." American Journal of Agricultural Economics 68:950-60.