Economic studies of changes in property rights institutions have been hampered by the use of ideal types. Conceptually we usually identify a small number of discrete property rights regimes, e.g., “open-access,” “common property” and “private property,” and then try to comprehend our data in terms of these categories. But in the so-called real world ideal types are seldom encountered. Instead we usually see complex mixtures of assorted arrangements, all growing or declining or mixing or separating at different rates and in different directions. Models containing nothing but ideal-type concepts are ill-suited to the analysis of such a reality. In this paper I want to examine a case of institutional change where one institutional regime was transformed into another; not by a discrete jump from one system to another, but through a gradual process of institutional adaptation and transition.

Agricultural economists often invoke instability, risk, and uncertainty as central concepts in understanding farm policy. Yet in analyzing policy alternatives we typically use comparative static methods that shift supply and demand curves and find new equilibria without reference to uncertainty in the economy or economic behavior other than profit-maximizing (risk neutral). This is true even in the most complex models being used to analyze 1985 farm bill alternatives, such as Johnson, et al. (1985). The aim of this paper is to understand this combination of simultaneous emphasis and neglect of risk considerations in policy analysis, and to assess costs of ignoring risk. The discussion consists of two parts, the first on normative considerations and the second on positive economics and risk.

The paper's hypothesis is that the farmers using land with urban influenced prices are at a competitive disadvantage because their land input cost exceeds it calitialized earning power while land prices for other farmers are based on earning ability. This hypothesis was investigated by comparing rates of return to land in Massachusetts and two non-urban dairy regions in Wisconsin. Both areas have low rates of return compared to contemporary market interest rates with Massachusetts rates somewhat below those in Wisconsin. When additional factors are considered, the hypothesis is weakly supported, at best.

This paper develops an economic model of the New England groundfish market. A multi-sector, multi-level econometric model is estimated using data from 1970 to 1982. The parameters of the estimated model are used to characterize consumer demand for groundfish and related products. Retail and exvessel demands for fresh and frozen groundfish fillets are found to be highly elastic. Fresh fillets especially show high income elasticity of demand, reflecting their status as a luxury good. Only a very small and statistically weak relationship was found between the prices of imported groundfish and domestic ex vessel prices indicating that proposals to assist the domestic industry via tariffs may be ineffectual.

Local area governments have experienced increasingly stringent budget constraints in recent years. Innovations in service delivery provide one avenue for increasing the effectiveness of resource allocations. This paper explores the potential savings available from regionalizing emergency medical service provision. A mixed integer programming model incorporating peak demand considerations is used to minimize service cost given a desired maximum response time. Changes in the weighted average response time measure the quality degradation required to attain the savings from cooperative provision. The results indicate that the benefits are substantial but that distribution of these gains is a possible barrier to implementation.

The primary objective of this research was to examine attitudes toward industrial development activities in a depressed rural county, and to document differences in those attitudes between men and women residents of the area.

An interregional transportation model was constructed using ordinary least squares and reactive programming to evaluate the short-run economic impact of changing transportation rate on the U.S. interregional equilibrium and, in particular, the Northeast's competitive position for fresh peaches. Using fixed regional supplies, uniquely determined regional per capita consumption and existing transportation rates the reactive programming algorithm obtains solutions to the spatial equilibrium problem including: overall regional quantities supplied and demanded, prices, consumers’ outlays, producers’ revenues and opportunity, transfer and shipping costs. Transportation rates were varied 20 percent above and below the current rates to examine the short-run economic impact on the prevailing equilibrium. The East Coast was a relatively isolated market and therefore was not significantly affected by changes in transportation rates. The most significant changes in producers’ revenues and trade flow patterns occurred in the remaining regions that traded mostly amongst themselves.

A new interpretation of commodity futures price theory is evaluated because, currently, many products exhibit price behavior which cannot be explained with existing theory. A method for classifying products according to the particular price theory relevant to them is provided. The classification method uses the futures price dependence enforced by arbitrage opportunities in spot markets as its base. The futures markets for beef cattle and corn are used as examples.

The thrust of this paper is to identify and measure structural changes in the U.S. demand for sugar and to derive subsequent implications for import restriction policies. Empirical results indicate that changes in consumer preferences and the availability of closer and cheaper sweeteners in food processing, especially high fructose corn syrup (HFCS), are exerting a downward pressure on sugar demand. As the U.S. demand for sugar decreases and the food industry adjusts faster to sweetener choices, the U.S. government would have to impose more restrictive import barriers to maintain prices to domestic sugar and HFCS producers. Furthermore, the welfare impact of U.S. sugar policy options on domestic consumers and food processors will be lessened.

Canadian agricultural trade promotion expenditures have dramatically increased from C$.4 million in 1969/70 to C$26.5 million in 1981/82. To evaluate the effect of these expenditures on agricultural exports an econometric analysis is presented in this study. The extended distributed lag model for export demand is developed and estimated using an iterative autoregressive least squares with instrumental variable (IALSI) method of estimation. The results reveal that the trade promotion programs (aggregate expenditure levels) have had a statistically significant effect on agricultural exports. The analysis of dynamic multipliers indicates that the effect of trade promotion expenditure on export levels is likely to decline gradually and last for about a five-year period. Also, the real export demand for aggregate agricultural products is found close to unitary elastic with respect to the real export price variable.

Participation in the 1984–85 Milk Diversion Program (MDP) is examined through the analysis of aggregate state level data for the U.S. and county level data from New York. Linear probability, logit and probit models of participation are estimated. The empirical results are highly similar across models and identify the important determinants of farmer participation in the MDP. Models explaining contracted diversion levels are also estimated but do not have the explanatory power of the participation models. The implications of the results for the analysis of U.S. dairy policy alternatives are discussed.

A severance tax can provide local jurisdictions with additional revenues to finance economic development, yet the imposition of a tax may create coal industry employment losses. This research analyzes this issue by examining the demand for Pennsylvania steam coal, providing estimates of the unconditional own price elasticities of demand for coal in each of two demand regions. These estimates in conjunction with labor/output coefficient estimates are used to determine the extent to which coal employment in a region already witnessing slow mining industry growth will be negatively affected.

Agricultural activities in three West Virginia counties were analyzed to determine their potential for increased direct marketing activities. For each county, the main type of agricultural enterprise was examined and compared with the direct marketing of small fruits and vegetables. The benefits of direct marketing combined with the present form of agriculture in these three West Virginia counties will be presented and discussed.