Geographic Information Systems (GIS) are becoming increasingly important to virtually all of the natural and social sciences. Applied economists will find that GIS can make valuable contributions to many of the problems with which they are concerned. Moreover, a great deal of the science behind GIS technology would benefit from the contributions of applied economists. This paper presents some initial suggestions for the ways in which GIS may be important to economics and the GIS related issues concerning which applied economists could provide useful insights.

Most econometric studies of the groundfish sector have suggested that either imports are not sensitive to U.S. prices, or that domestic prices are not much affected by imports, or both. Using a six equation model of the domestic fresh groundfish market we obtained contrasting results. For example, a 5.82 percent tariff of the type proposed by the U.S. International Trade Commission in 1986 would, if it applied to both whole fish and fillets, lower imports of fresh fish 3.7 percent and raise domestic ex-vessel prices 2.6 percent in the long run. The main reasons for the different results appear to be our inclusion of exchange rate effects and a more accurate measure of total fresh imports.

In this study, we examine the impacts of retail promotions and flu/cold incidences on the demand for orange juice using weekly Nielsen grocery orange juice sales statistics and the flu/cold incidences reported by Surveillance Data Inc. The cross-section time-series pooling technique proposed by Parks was used to estimate the demand parameters. Results show that flu/cold incidences increased the effectiveness of retail promotions on the demand for orange juice.

In traditional contingent valuation, the researcher seeks the amount a respondent is willing, ceteris paribus, to pay to obtain something. But if a respondent receives a “warm glow” from a yes response, ceteris is not paribus. In estimating willingness to pay (WTP) to reduce environmental impacts from consumption of transportation fuel, we find that respondents who were relatively less environmentally focused in the past receive greater warm-glow benefits from a “yes” response and have greater “warm” WTP (WTP that includes warm-glow benefits). Yet respondents who were relatively more environmentally focused in the past have greater “cold” WTP (WTP excluding warm-glow benefits).

Human fertility can affect agricultural production through its effect on supply of agricultural labor. Using the fact that in traditional, patriarchal societies, sons are generally preferred to daughters, we isolate exogenous variation in the number of children born to a mother and relate it to the agricultural labor supply and production in Uganda, which has a dominant agricultural sector and high fertility. We find that fertility has a sizable negative effect on household labor allocation to subsistence agriculture. Households with lower fertility devote significantly more time to land preparation and weeding; larger households grow less matooke and sweet potatoes. We find no significant effect on agricultural productivity in terms of yield per land area.

We estimate the relationship between farm animal welfare (FAW) efforts taken by beef farmers and the economic performance of beef farms by using farm accounting data from the Swedish Farm Economic Survey matched with survey data on farm management practices. To this end, we perform a two-step analysis. First, an item response theory (IRT) model estimates the latent FAW effort on farms. FAW effort likely depends on a host of complementary FAW-improving strategies, and the IRT model combines the considered strategies into a unidimensional scale. We take this to represent on-farm FAW effort. Second, we use instrumental variable regressions to estimate the relationship between FAW effort and multiple measures of farm economic performance. We find that higher FAW effort scores have no effect on margins and costs. However, higher FAW effort scores are associated with lower farm sales. Findings suggest that policies (such as targeted label for high FAW) that increase farm revenue as well as incentivize the uptake of FAW-improvement practices may be able to compensate farmers for their FAW effort.

To investigate the poor participation rate of cranberry growers in the multiple-peril crop insurance program, a sample of 15 Massachusetts growers was interviewed. According to their risk preferences, a much greater proportion of growers should have insured, than actually did. A possible solution is to match the distribution used by the insurer closer to that believed by the grower. Adjusting each grower's historical yield series for trend brought the historical and subjective mean yields much closer. However, an aggregate test found the effect of adjustment to be insignificant, implying that the avenue for increased participation lies elsewhere.

Federal agencies invest taxpayer dollars every year in conservation programs that are focused on improving a suite of ecosystem services produced on private lands. A better understanding of the public benefits generated by federal conservation programs could help improve governmental efficiency and economic welfare by providing science-based evidence for use in policy decision-making regarding targeting of federal conservation investments. Of specific concern here are conservation investments made by the U.S. Department of Agriculture (USDA). While previous research has shown that efficiency gains are possible using cost-benefit analysis for targeting conservation investments, agency-wide implementation of this approach by policy makers has been constrained by the limited availability of location-specific information regarding conservation benefits. Cost-effective opportunities for integrating location-specific ecosystem service valuation research with USDA conservation decision-making include: (1) institutionalizing funding of comparable studies suitable for benefit transfer, (2) utilizing non-traditional data sources for research complementing benefit transfer, and (3) creating a state-of-the-art program for developing and communicating research in ecosystem service valuation exemplifying the highest standards of scientific conduct.

Given the relatively small industry scale of cow-calf operations in New York to other regions of the country, little is known about differences in determinant values for feeder cattle. Using auction prices and quality characteristics over 7 years, differences in market, lot, and quality parameters suggest opportunities for improved marketing performance. A delta profit model is constructed to inform timing of marketing decisions for producers. The results indicate a relatively high potential for producers to increase farm returns by delaying sales of lighter-weight feeder cattle from the fall to spring auction months, given sufficient rates of gain and reasonable overwintering costs.

Consumer misperception and misinterpretation of food labels can lead to consumers not buying a product or purchasing products that do not align with their environmental or sustainability interests. Consumer purchasing behavior can be explained by looking at consumer food values or food quality attributes. This study aimed to (a) determine the effect label information has on consumer preference shares for selected sustainability-related food labels and (b) if correlations exist between food labels and food values. To the best of our knowledge, this is the first study to examine the comprehension of 12 different labels and identify how food labels relate to food value preferences. Responses from the best-worst scaling experiment of food value and environmental food label choice sets were analyzed using the random parameter logit model. Results reveal preference shares changed for each label as more information was provided to the respondents about the various labels included in the study. These findings should support food policy efforts requiring strict, clear label standards. Food labels should represent the food’s core food values to increase consumer preference for the product. These findings also further support the need for efforts to increase consumer knowledge and understanding of the labels on food packaging.

The food processing industry is Canada's second-largest manufacturing industry. It employed 226,579 people in 1986, and shipments were valued at CDN $47 billion, or 15 percent of the value of total manufactured output that year. More significantly, the food and beverage industries together ranked highest among all manufacturing industries in terms of value added, at CDN $15 billion or approximately 14 percent of total value added in Canadian manufacturing industries in 1986 (Statistics Canada). Given the high degree of competition in this industry in the United States, the history of “comfortable” competition in the food industry in Canada, and the significant contribution of this industry to the Canadian economy, it becomes important to look more carefully at how this industry has been and will be affected by the Canada-U.S. Free Trade Agreement (FTA).

An econometric model of U.S. and Maine apple production and prices was estimated with ordinary least squares multiple regression. A Gauss-Seidel solution technique was used to examine the equation system goodness of fit and to forecast endogenous variable values. Results indicate that supply expansion in the U.S. and Maine will continue, but Maine's slower rate of increase will erode its market share. Apple prices for the U.S. and Maine are predicted to decline in real terms by the year 2000 if inflation rates exceed 3 percent annually during the period 1982 to 2000.

Models are developed to examine the determinants of weekly truck rates for produce shipped to the Northeast from California and Florida. In the empirical work, a large proportion of the variation in rates is explained and the estimated parameters are generally consistent with a priori expectations. The total quantity of produce shipped from each state, the proportion of this total which is compatible with the commodity in question, and the F.O.B. price if the commodity were found to be the most important determinants of truck rate levels. Fuel costs have a surprisingly weak influence, at least in the short run, and for Florida origin commodities the truck rate-fuel cost relationship appears to have weakened over the 1979–1983 sample period.

On most Northeastern dairy farms bull calves are considered a superfluous output and are sent to auction markets as soon as possible after they are born. The excess supply situation in the United States dairy industry combined with other obstacles to dairy herd expansion has resulted in dairy producers seeking expansion options other than increased dairy herd size. Several alternatives for expanding the dairy farm business that utilize bull calves as a resource are possible. Dairy beef systems that are most complementary to the ongoing dairy business should be particularly attractive.

A five-year linear programming farm planning model, permitting the inclusion of nitrogen decay rates, was constructed to include the use of sewage sludge as a primary crop nutrient source. Twenty-two scenarios depicting various operating conditions were examined and maximized net farm incomes compared.

Although only a small percentage difference resulted between the highest and the lowest net revenues over the five-year period, given a variety of operating circumstances, those scenarios including the use of sludge yielded the highest net incomes. Nitrogen application restrictions were at their upper limits when sludge use was included in the optimal solution. The calculation of net present values, for the two sludge contents considered, provided value estimates compatible with the linear programming solutions.

Impacts of alternative federal milk marketing policies which result in reduced fluid (Class I) milk prices were assessed using a simulation model of the U.S. dairy industry. Results indicated that milk production, farm milk prices and producer revenues were significantly reduced in the Southern and Northeast regions of the country under some options. The regional shares of total U.S. milk production were not significantly altered from those which would exist under a continuation of the current policy.

Three major problems appear common to recent research efforts aimed at measurement and assessment of the adequacy of community services. These include:

1. (i) difficulties and inconsistencies which relate to the definition and interpretation of utilization behavior,

2. (ii) econometric misspecification—e.g., omission of critical variables affecting needs or use—, and

3. (iii) choice of inappropriate estimation technique when the dependent variable (e.g., use or non-use of the service) is dichotomous.

Farris and Padberg, Krenz, and Boxley have discussed different ways of projecting the distribution of firm sizes. Farris and Padberg utilize Markov chain analysis where transition probabilities were derived from observed changes in firm size for Florida citrus packing firms over a five-year period. Krenz, recognizing the difficulty of securing data with which to estimate transition probabilities, developed rules which could be used to derive transition probabilities from census data. Krenz applied this technique to the size distributions of North Dakota farms. Finally, Boxley applied a completely different technique to estimating farm size distributions in the United States. Boxley's technique involved fitting negative exponential functions to firm size distributions observed from census data. According to Boxley, these functions were sufficiently stable to permit estimation of future firm size distributions.

Each year various agricultural commodity groups spend millions of dollars advertising and promoting their respective products. Typically such “demand creating” attempts have been purported as a panacea for low producer returns despite their unevaluated performance records. Notwithstanding the magnitude of these promotional expenditures, the literature is scarce regarding the effect of advertising on commodity sales. Such knowledge would provide an invaluable input for promotion expenditure decisions and a means to evaluate the effects of advertising and promotion on economic surplus.