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Rational Expectations Estimation of Georgia Soybean Acreage Response

Published online by Cambridge University Press:  28 April 2015

Nicolas B. C. Ahouissoussi ,
Christopher S. McIntosh  and
Michael E. Wetzstein
Nicolas B. C. Ahouissoussi
Affiliation:
Department of Agricultural and Applied Economics, University of Georgia
Christopher S. McIntosh
Affiliation:
Department of Agricultural and Applied Economics, University of Georgia
Michael E. Wetzstein
Affiliation:
Department of Agricultural and Applied Economics, University of Georgia
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Abstract

The general method of moments procedure is used for estimating a soybean acreage response function assuming that producers hold rational expectations. Results indicate that soybean, corn, and wheat futures prices, lagged acreage, and government programs are significant factors for determining soybean plantings. Implications of the results are that crop acreage selection by Georgia producers is not very responsive to demand shocks. Thus, producers in other regions are more likely to absorb impacts from these shocks on crop acreage selection.

Keywords

soybeansrational expectationsGMMelasticities

Information

Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 27 , Issue 2 , December 1995 , pp. 500 - 509
Copyright
Copyright © Southern Agricultural Economics Association 1995

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