Why Are Estimates of Agricultural Supply Response so Variable?

Francis Diebold and Russell L. Lamb

No 1996-08, Finance and Economics Discussion Series from Board of Governors of the Federal Reserve System (U.S.)

Abstract: Estimates of the response of agricultural supply to movements in expected price display curiously large variation across crops, regions, and time periods. We argue that this anomoly may be traced, at least in part, to the statistical properties of the commonly-used econometric estimator, which has infinite moments of all orders and may have a bimodal distribution. We propose an alternative minimum- expected-loss estimator, establish its improved sampling properties, and argue for its usefulness in the empirical analysis of agricultural supply response.

Keywords: Agricultural supply response; Bayesian estimation; MELO estimation (search for similar items in EconPapers)
Pages: 35 pages
Date: 2019-12-04
New Economics Papers: this item is included in nep-agr
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http://www.federalreserve.gov/pubs/feds/1996/199608/199608pap.pdf (application/pdf)

Related works:
Journal Article: Why are estimates of agricultural supply response so variable? (1997)
Working Paper: Why are estimates of agricultural supply response so variable? (1996)
Working Paper: Why Are Estimates of Agricultural Supply Response So Variable?
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Persistent link: https://EconPapers.repec.org/RePEc:fip:fedgfe:1996-08

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