000150696 001__ 150696 000150696 005__ 20210819131547.0 000150696 0247_ $$2doi$$a10.22004/ag.econ.150696 000150696 041__ $$aeng 000150696 245__ $$aFutures Prices in Supply Analysis Reconsidered 000150696 260__ $$c2013-06-03 000150696 269__ $$a2013-06-03 000150696 270__ $$mnph@ksu.edu$$pHendricks, Nathan P. 000150696 270__ $$mjanzen@primal.ucdavis.edu$$pJanzen, Joseph P. 000150696 270__ $$madsmith@ucdavis.edu$$pSmith, Aaron 000150696 300__ $$a34 000150696 336__ $$aConference Paper/ Presentation 000150696 490__ $$aPaper 000150696 490__ $$a2190 000150696 520__ $$aAre futures prices exogenous to agricultural supply? It depends. We argue that crop yield shocks were predictable during the 1961-2007 period because high planting-time futures prices tended to indicate that yield would be below trend. This feature of the data implies that regressions of production on futures prices would underestimate the supply elasticity, i.e., endogeneity in the futures price biases the regression coefficient down. However, this predictability has only a small effect on planted acreage. Thus, estimating supply models with regressions of planted acreage on futures prices entails a small endogeneity bias. Moreover, this small bias is mitigated by adding the realized yield shock as a control variable to such a model as a proxy for the expected yield shock. The marginal contribution of an instrumental variable to bias reduction is thus small. 000150696 546__ $$aEnglish 000150696 650__ $$aCrop Production/Industries 000150696 650__ $$aDemand and Price Analysis 000150696 650__ $$aProduction Economics 000150696 700__ $$aHendricks, Nathan P. 000150696 700__ $$aJanzen, Joseph P. 000150696 700__ $$aSmith, Aaron 000150696 773__ $$d2013 000150696 8564_ $$9c4201566-f5e3-443a-971c-5e00ed3dd3b8$$s441928$$uhttps://ageconsearch.umn.edu/record/150696/files/Futures_Supply_AAEA2013.pdf 000150696 887__ $$ahttp://purl.umn.edu/150696 000150696 909CO $$ooai:ageconsearch.umn.edu:150696$$pGLOBAL_SET 000150696 912__ $$nSubmitted by Elizabeth Hilber (hilb0033@umn.edu) on 2013-06-11T17:17:35Z No. of bitstreams: 1 Futures_Supply_AAEA2013.pdf: 441928 bytes, checksum: c275c44d8a955004f5754433eb01dbe9 (MD5) 000150696 912__ $$nMade available in DSpace on 2013-06-11T17:17:37Z (GMT). No. of bitstreams: 1 Futures_Supply_AAEA2013.pdf: 441928 bytes, checksum: c275c44d8a955004f5754433eb01dbe9 (MD5) Previous issue date: 2013-06-03 000150696 913__ $$aLicense granted by Elizabeth Hilber (hilb0033@umn.edu) on 2013-06-11T17:15:27Z (GMT): <center> <h2> Deposit Agreement </h2> </center> I represent that I am the creator of the digital material identified herein (&ldquo;Work&rdquo;). I represent that the work is original and that I either own all rights of copyright or have the right to deposit the copy in a digital archive such as AgEcon Search. I represent that in regard to any non-original material included in the Work I have secured written permission of the copyright owner (s) for this use or believe this use is allowed by law. I further represent that I have included all appropriate credits and attributions. I hereby grant the Regents of the University of Minnesota (&ldquo;University&rdquo;), through AgEcon Search, a non-exclusive right to access, reproduce, and distribute the Work, in whole or in part, for the purposes of security, preservation, and perpetual access. I grant the University a limited, non-exclusive right to make derivative works for the purpose of migrating the Work to other media or formats in order to preserve access to the Work. I do not transfer or intend to transfer any right of copyright or other intellectual property to the University. If the Deposit Agreement is executed by the Author�s Representative, the Representative shall separately execute the following representation: I represent that I am authorized by the Author to execute this Deposit Agreement on behalf of the Author. 000150696 980__ $$a325 000150696 982__ $$gAgricultural and Applied Economics Association>2013 Annual Meeting, August 4-6, 2013, Washington, D.C.