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    Price expectations in perennial crop supply models

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    Author
    Zhang, Xiaohua, 1964-
    Issue Date
    1991
    Keywords
    Economics, Agricultural.
    Advisor
    Monke, Eric A.
    
    Metadata
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    Publisher
    The University of Arizona.
    Rights
    Copyright © is held by the author. Digital access to this material is made possible by the University Libraries, University of Arizona. Further transmission, reproduction or presentation (such as public display or performance) of protected items is prohibited except with permission of the author.
    Abstract
    In the analysis of investment and production decisions for perennial crops, expectations play a critical role. This thesis studied three hypotheses about price expectations and reviewed five supply response models for perennial crops. An empirical model for the apple industry was developed to test alternative representations of expected prices. The naive and adaptive expectation model performed well with national data, whereas moving averages of price and the adaptive expectations model performed better with Washington data. To improve estimates of supply response for perennial crops, better data are needed to describe new plantings, removals, the age distribution of trees, production costs, and climatic conditions. Rapid technological change in the U.S. apple industry may cause producers to revise the way they form expected prices, encouraging them to use more historical information and paying more attention to projections of future demand. Rational expectations perspectives may become increasingly relevant.
    Type
    text
    Thesis-Reproduction (electronic)
    Degree Name
    M.S.
    Degree Level
    masters
    Degree Program
    Graduate College
    Agricultural Economics
    Degree Grantor
    University of Arizona
    Collections
    Master's Theses

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