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Full-Text Articles in Agricultural and Resource Economics
Marketing Margins, Market Power, And Price Uncertainty, John Schroeter, Azzeddine Azzam
Marketing Margins, Market Power, And Price Uncertainty, John Schroeter, Azzeddine Azzam
Azzeddine Azzam
This paper provides a conceptual and empirical framework for analyzing marketing margins in a noncompetitive food-processing industry facing output price uncertainty. The framework allows for the decomposition of observed margins into components reflecting the marginal cost of the processing industry, oligopoly/oligopsony price distortions, and an output price risk component. The empirical procedure is applied to a time series of spreads between wholesale pork prices and farm prices of market hogs. The principal finding is that, while farm/wholesale margins are more consistent with competitive performance now than they were fifteen years ago, the output price risk component persisted throughout the sample …
Efficient Spatial Allocation Of Irrigation Water, Ujjayant N. Chakravorty, James Roumasset
Efficient Spatial Allocation Of Irrigation Water, Ujjayant N. Chakravorty, James Roumasset
Ujjayant Chakravorty
In the presence of conveyance losses, the efficient quantity of water applied falls with distance from the water source, but the amount of water "sent" (including conveyance losses) actually increases with distance from the source, except toward the tail end of the irrigation system. This implies that if marginal cost pricing were implemented, farmers at the middle and lower reaches of the system would have to pay more money for less water received. The model is illustrated and alternative financing schemes compared for an empirically derived demand function for irrigation water.