scholarly journals THE IMPACT OF BIOFUELS POLICY AND DROUGHT ON THE U.S. GRAIN AND LIVESTOCK MARKETS

2015 ◽  
Vol 47 (1) ◽  
pp. 77-103 ◽  
Author(s):  
SUNIL P. DHOUBHADEL ◽  
AZZEDDINE M. AZZAM ◽  
MATTHEW C. STOCKTON
Keyword(s):  
Equilibrium Displacement Model ◽  
Equilibrium Displacement ◽  
Livestock Markets ◽  
Corn Prices ◽  
Distillers Grain ◽  
Corn Distillers ◽  
Biofuels Policy ◽  
The Impact ◽  
Displacement Model ◽  
The U.S

AbstractThis article examines the impact of the 2012 drought and the biofuels mandate on the U.S. grain and livestock markets and estimates the mandate waiver required to offset the impact on the corn price. The framework used is a stochastic equilibrium displacement model that integrates the beef, pork, and poultry markets with the corn, distillers’ grain, soybean, soymeal, and ethanol markets. The corn and beef markets are found to be the most vulnerable. A mandate waiver of approximately 23% is required to fully negate the impact of the drought on corn prices. The waiver is equivalent to a 13.7% reduction in ethanol consumption.

scholarly journals ECONOMIC CONSEQUENCES FOR TREE FRUIT INTERMEDIARIES FROM SHOCKS

2017 ◽  
Vol 49 (4) ◽  
pp. 592-616 ◽  
Author(s):  
XIAOJIAO JIANG ◽  
ANDREW J. CASSEY ◽  
THOMAS L. MARSH
Keyword(s):  
Dynamic Equilibrium ◽  
Disease Outbreaks ◽  
Economic Consequences ◽  
Fresh Market ◽  
Trade Shocks ◽  
Equilibrium Displacement Model ◽  
Equilibrium Displacement ◽  
Trade Sanctions ◽  
The Impact ◽  
Displacement Model

AbstractMotivated by disease outbreaks and trade shocks, a dynamic equilibrium displacement model is calibrated for the U.S. pear industry to simulate welfare from various shocks compared to a baseline. Our contribution is assessing the impact to intermediary packers for fresh fruit and processors for processed fruit in addition to growers and consumers. The processed market is more sensitive than the fresh market generally, and supply shocks induce larger impacts on both markets than trade sanctions. Impacts to intermediaries are on par with growers, indicating that not considering them misstates the distribution of damages to the industry from a shock.

scholarly journals Policy Implications of Textile Trade Management and the U.S. Cotton Industry

1993 ◽  
Vol 22 (1) ◽  
pp. 37-47 ◽  
Author(s):  
Shangnan Shui ◽  
Michael K. Wohlgenant ◽  
John C. Beghin
Keyword(s):  
Trade Liberalization ◽  
Policy Implications ◽  
Cotton Industry ◽  
Equilibrium Displacement Model ◽  
Textile Trade ◽  
Equilibrium Displacement ◽  
Demand Structure ◽  
World Markets ◽  
Displacement Model ◽  
The U.S

This study investigates the effects on the U.S. cotton industry of textile trade liberalization using a multi-market equilibrium displacement model. The simulation results suggest that textile trade liberalization would induce small changes in the total demand for U.S. cotton but would affect considerably U.S. cotton demand structure, making U.S. cotton growers more dependent on world markets. The welfare analyses reveal that textile trade liberalization would result in a small welfare loss for U.S. cotton producers. As expected, textile trade liberalization also would lead to considerable substitution of imports for domestic production and substantial declines in prices of all textile products.

Economic Impact and Trade Implications of the Introduction of Black Sigatoka (Mycosphaerella fijiensis) into Puerto Rico

2007 ◽  
Vol 39 (s1) ◽  
pp. 5-17 ◽  
Author(s):  
Carmen Alamo ◽  
Edward Evans ◽  
Alba Brugueras ◽  
Sikavas Nalampang
Keyword(s):  
Puerto Rico ◽  
Economic Benefits ◽  
Mycosphaerella Fijiensis ◽  
Black Sigatoka ◽  
Equilibrium Displacement Model ◽  
Equilibrium Displacement ◽  
The Government ◽  
The Impact ◽  
Displacement Model

This article addresses the issues of the potential impacts of the introduction of black sigatoka into Puerto Rico under situations in which the government assists growers in managing the spread of the disease, with and without prohibitions on imports of plantains and bananas. An equilibrium displacement model is used to quantify the impact of black sigatoka. The results indicate that under both scenarios the net economic benefits to society were negative. Over the long term, the government would be well-advised to invest in research to develop plantain and banana varieties that are resistant to black sigatoka.

scholarly journals Global Welfare Impacts of U.S. Meat Promotion Activities

2009 ◽  
Vol 38 (3) ◽  
pp. 418-430 ◽  
Author(s):  
Shida Rastegari Henneberry ◽  
Joao E. Mutondo ◽  
B. Wade Brorsen
Keyword(s):  
Imperfect Competition ◽  
Meat Industry ◽  
Supply Source ◽  
Welfare Impacts ◽  
Equilibrium Displacement Model ◽  
Equilibrium Displacement ◽  
Beef Producers ◽  
Global Welfare ◽  
Meat Markets ◽  
The U.S

An equilibrium displacement model of the U.S. meat markets is used to measure the potential impacts of promotion investment, differentiating meats by types and by supply source, taking into account the U.S. participation in global meat markets, and considering imperfect competition in the meat industry. The increase in U.S. producer welfare resulting from a 10 percent increase in promotion ranges from -$1.29 million to $2.60 million for U.S. beef producers and from -$0.96 million to $1.67 million for U.S. pork producers, depending primarily on the advertising elasticity used.

The Sustainable Forestry Initiative’s impact on stumpage markets in the US South

2005 ◽  
Vol 35 (8) ◽  
pp. 2056-2064 ◽  
Author(s):  
Roger Brown ◽  
Daowei Zhang
Keyword(s):  
Consumer Surplus ◽  
Sustainable Forestry ◽  
Consumer Welfare ◽  
Us South ◽  
Equilibrium Displacement Model ◽  
Equilibrium Displacement ◽  
The Us ◽  
Producer Surplus ◽  
Nonindustrial Private Forest ◽  
Displacement Model

Using survey data and an equilibrium displacement model, we estimate the market and economic impacts of the American Forest and Paper Association's Sustainable Forestry Initiative (SFI) on stumpage markets in the US South. We examine four timber product markets: softwood pulpwood, softwood sawtimber, hardwood pulpwood, and hardwood sawtimber. In each market we calculate changes in producer and consumer welfare using the equilibrium displacement model that accounts for reductions in timber inventories caused by SFI compliance. We find that SFI compliance costs the US South's economy about $36 million annually. SFI-compliant stumpage producers lose more than $33 million each year in producer surplus as a result of SFI compliance, and consumers lose about $12 million annually in consumer surplus due to higher product prices. These costs are offset partially by benefits to nonindustrial private forest producers, non-SFI-compliant industry producers, and public forest producers, who collectively gain about $10 million in producer surplus annually as a result of higher stumpage prices.

scholarly journals Gluten-Free: Where’s the Beef?

2020 ◽  
Vol 52 (2) ◽  
pp. 308-334
Author(s):  
Aaron M. Ates ◽  
Jayson L. Lusk
Keyword(s):  
Food Production ◽  
Consumer Welfare ◽  
Alcoholic Beverages ◽  
Gluten Free ◽  
Equilibrium Displacement Model ◽  
Food Away From Home ◽  
Equilibrium Displacement ◽  
Displacement Model ◽  
Retail Food ◽  
Modest Reduction

AbstractThis research seeks to determine effects of rising interest in gluten-free foods on U.S. retail food demand and, ultimately, producer and consumer welfare. Increased gluten-free interest led to a modest reduction in cereals and bakery demand and increases in meat, alcoholic beverages, and food away from home demand. Combining estimated effects with an equilibrium displacement model suggests the reduction in cereal and bakery demand decreases wheat and barley producer profits by US$7.2 million/year. After accounting for positive demand impacts on other products, results indicate wheat and barley supply is redistributed away from food production into animal production, increasing wheat producer welfare.

scholarly journals New Varieties and the Returns to Commodity Promotion: The Case of Fuji Apples

2000 ◽  
Vol 29 (1) ◽  
pp. 10-23 ◽  
Author(s):  
Timothy J. Richards ◽  
Paul M. Patterson
Keyword(s):  
Positive Impact ◽  
Consumer Experience ◽  
Consumer Learning ◽  
Apple Variety ◽  
Equilibrium Displacement Model ◽  
Equilibrium Displacement ◽  
Producer Surplus ◽  
New Varieties ◽  
Fuji Apple ◽  
Displacement Model

The Fuji apple variety is relatively new in the U.S. As a new product, questions concern the relative impact of consumer learning by experience, by variety-specific promotion, or by generic apple promotion. A two-stage (LES/LAIDS) model incorporating both types of promotion is used to estimate the effect of generic and variety specific promotion, as well as consumer experience, on the demand for Fuji apples. Estimates show each to have a positive impact, and also show new or specialty apple varieties to be relatively price inelastic, but income elastic. Grower returns to promotion are calculated with an equilibrium displacement model of price changes and producer surplus. Changes in producer surplus provide a base-scenario benefit:cost ratio of 6.33:1.

Fertilizer industry subsidies in China: who are the beneficiaries?

2014 ◽  
Vol 6 (3) ◽  
pp. 433-451 ◽  
Author(s):  
Sheng Li ◽  
Yaoqi Zhang ◽  
Denis Nadolnyak ◽  
John David Wesley ◽  
Yifei Zhang
Keyword(s):  
Target Groups ◽  
Allocation Pattern ◽  
Content Type ◽  
Equilibrium Displacement Model ◽  
Fertilizer Industry ◽  
Total Surplus ◽  
Equilibrium Displacement ◽  
Multi Stage ◽  
Subsidy Incidence ◽  
Displacement Model

Purpose – Since 2004, subsidies increased by 670 percent in the Chinese fertilizer industry to reduce the farmer's burden. The purpose of this paper is to assess whether subsidies benefit the target groups, the fertilizer subsidy distribution pattern and benefit allocation pattern among fertilizer producers and other sectors were investigated. Design/methodology/approach – The Muth model is extended to evaluate the impacts of a subsidy on multi-stage markets. Findings – It is found that the total benefits from the policy are about RMB 7.7 billion yuans. The fertilizer suppliers gain about RMB 51 billion yuans from the favorable policy with mean subsidy incidence 0.8 and capturing about 70 percent of total surplus. Social implications – The results suggest that transferring parts of subsidies to the non-fertilizer sectors could be considered an efficient way to redistribute welfare indifferent sectors. Originality/value – This study first use the equilibrium displacement model to quantity the distribution of fertilizer subsidy in a vertical market in China.

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