THE EFFECT OF GOVERNMENT PROGRAMS ON ACREAGE RESPONSE OVER TIME: THE CASE OF CORN PRODUCTION IN IOWA

Corn acreage response in Iowa is examined using a time-varying parameter regression model. Separate estimates of the permanent portion of the parameter vector are obtained for each year over the period 1957-82. The estimated elasticities are grouped into "program" and "nonprogram" periods. The results indicate corn acreage response is more own-price elastics, and the elasticity is less variable under government acreage control programs than under a "nonprogram" regime. The assumption of parameter constancy is shown to be inappropriate for modeling Iowa corn acreage response over time.


Issue Date:
1989-07
Publication Type:
Journal Article
DOI and Other Identifiers:
Record Identifier:
https://ageconsearch.umn.edu/record/32462
PURL Identifier:
http://purl.umn.edu/32462
Published in:
Western Journal of Agricultural Economics, 14, 1
Page range:
38-44
Total Pages:
7




 Record created 2017-04-01, last modified 2020-10-28

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