Hostname: page-component-586b7cd67f-2plfb Total loading time: 0 Render date: 2024-12-01T08:56:11.087Z Has data issue: false hasContentIssue false
  • English
  • Français

Government Payments to Farmers and Real Agricultural Asset Values in the 1980s

Published online by Cambridge University Press:  05 September 2016

Charles B. Moss ,
J.S. Shonkwiler  and
John E. Reynolds
Charles B. Moss
Affiliation:
Department of Food and Resource Economics, University of Florida
J.S. Shonkwiler
Affiliation:
Department of Food and Resource Economics, University of Florida
John E. Reynolds
Affiliation:
Department of Food and Resource Economics, University of Florida
Get access Rights & Permissions [Opens in a new window]

Abstract

This study determines the effect of government payments on real agricultural asset values using Bayesian vector autoregression. In developing the empirical model, special attention is focused on the informational content of government payments. The results indicate that government payments to farmers have little effect on real asset values in the long run. In the short run, an increase in government payments to farmers may be associated with decline in asset values.

Keywords

informational contentBayesian vector autoregressionreal asset valuesgovernment payments to farmers
Type
Submitted Articles
Information
Journal of Agricultural and Applied Economics , Volume 21 , Issue 2 , December 1989 , pp. 139 - 153
Copyright
Copyright © Southern Agricultural Economics Association 1989

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Alston, J.M. “An Analysis of Growth in U.S. Farmland Prices 1963-82.” Amer. J. Agr. Econ., 68(1986): 1–9.Google Scholar
Bessler, D.A. “Analysis of Dynamic Economic Relationships: An Application to the U.S. Hog >Market.” Can. J. Agr. Econ., 32(1984): 109–124.Google Scholar
Bessler, D.A., and Kling, J.L.. “Forecasting Vector Autoregressions with Bayesian Priors.” Amer. J. Agr. Econ., 68(1986):144–151.Google Scholar
Burbidge, J. and Harrison, A.. “Testing for the Effects of Oil Price Rises Using Vector Autoregressions.” Int. Econ. Rev., 25(1984): 459–484.Google Scholar
Burt, O.R. “Econometric Modeling of the Capitalization Formula for Farmland Prices.” Amer. J. Agr. Econ., 68(1986):10–26.Google Scholar
Doan, T.A., and Litterman, R.B.. User's Manual RATS Version 2.1. Evanston, IL: VAR Econometrics, Inc., 1987.Google Scholar
Ericksen, M.H., and Collins, K.. “Effectiveness of Acreage Reduction Programs.” In Agricultural Food Policy Review: Commodity Program Perspectives. United States Department of Agriculture, Economic Research Service, Agricultural Economic Report Number 530, July 1985.Google Scholar
Featherstone, A.M., and Baker, T.G... “An Examination of Farm Sector Real Asset Dynamics: 1910-85.” Amer. J. Agr. Econ., 69(1987): 532–546.Google Scholar
Feldstein, M. “Inflation, Portfolio Choice, and the Prices of Land and Corporate Stock.” Amer. J. Agr. Econ., 62(1980):910–916.Google Scholar
Harvey, A.C. The Econometric Analysis of Time Series. New York: John Wiley & Sons, 1981.Google Scholar
Litterman, R.B., “Forecasting With Bayesian Vector Autoregression—Five Years of Experience.” J. Business Econ. Stat, 4(1986):25–38.Google Scholar
Litterman, R.B., and Wiess, L.. “Money, Real Interest Rates and Output: A Reinterpretation of Postwar U.S. Data.” Econometrica, 53(1985):129–156.Google Scholar
Ljung, G.M. and Box, G.E.P.. “On a Measure of Lack of Fit in Time Series Models.” Biometrika, 67(1978):297–303.Google Scholar
Melichar, E. Agricultural Finance Databook. Division of Research and Statistics, Board of Governors of the Federal Reserve System, Washington D.C. June 1987.Google Scholar
Moss, C.B., Baker, T.G., and Brorsen, B.W.. “Effects of the Macroeconomic Environment on Agricultural Prices in the Early 1980s.” Selected paper presented at the NC-161 Meetings, October 1987, Denver, Colorado.Google Scholar
Sims, C.A. “Macroeconomics and Reality.” Econometrica, 48(1980):1–5.Google Scholar
Theil, H. “On the Use of Incomplete Prior Information in Regression Analysis.” J. Amer. Stat. Assoc, 58(1963):401–414.Google Scholar
U.S. Department of Agriculture. Economic Indicators of the Farm Sector National Financial Summary, 1986. Washington D.C. ECIFS 6-2, December 1987.Google Scholar
U.S. Department of Commerce, Bureau of Economic Analysis. Business Statistics 1984. 24 ed. 1985.Google Scholar
U.S. Department of Commerce, Bureau of Economic Analysis. Survey of Current Business. Various issues, 1984-1987.Google Scholar