New Economics Papers
on Agricultural Economics
Issue of 2005‒03‒13
two papers chosen by

  1. Using a Farmer’s Beta for Improved Estimation of Actual Production History (APH) Yields By Carriquiry, Miguel A.; Babcock, Bruce A.; Hart, Chad E.
  2. The Marketing Structure in Agribusiness during the Transition in Bulgaria By Steve Murray; Yordan Staykov,; Valentin Katzerov

  1. By: Carriquiry, Miguel A.; Babcock, Bruce A.; Hart, Chad E.
    Abstract: The effect of sampling error in estimation of farmers’ mean yields for crop insurance purposes is explored using farm-level corn yield data in Iowa from 1990 to 2000 and Monte Carlo simulations. We find that sampling error combined with nonlinearities in the insurance indemnity function will result in empirically estimated crop insurance rates that exceed actuarially fair values by between 2 and 16 percent, depending on the coverage level and the number of observations used to estimate mean yields. Accounting for the adverse selection caused by sampling error results in crop insurance rates that will exceed fair values by between 42 and 127 percent. We propose a new estimator for mean yields based on a common decomposition of farm yields into systemic and idiosyncratic components. The proposed estimator reduces sampling variance by approximately 45 percent relative to the current estimator.
    Date: 2005–03–07
  2. By: Steve Murray; Yordan Staykov,; Valentin Katzerov
    Abstract: Bulgaria is moving toward a food processing and marketing system which resembles that of Western Europe and the U.S. Large grocery chains from Germany, Austrai and Turkey are building supermarkets and hypermarkets in Bulgaria’s larger cities. However, income in Bulgaria remains much lower than in Western Europe and most Bulgarian consumers cannot afford to shop in the new stores yet. Neighborhood markets, which serve average Bulgarians, are expanding their product selections and remain the primary shopping venue. Food processing plants in Bulgaria are being upgraded to meet EU standards. Farmers are getting more efficient as land is consolidated. On the whole, the agriculture and agribusiness sectors in Bulgaria are improving.
    Keywords: Bulgaria, food marketing, transition
    JEL: O52 P23 Q13
    Date: 2005–01–01

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