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Nonconstant Price Expectations and Acreage Response: The Case of Cotton Production in Georgia

Published online by Cambridge University Press:  28 April 2015

Scott D. Parrott  and
Christopher S. McIntosh
Scott D. Parrott
Affiliation:
Department of Agricultural Economics, University of Tennessee
Christopher S. McIntosh
Affiliation:
Department of Agricultural and Applied Economics, University of Georgia
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Abstract

An adaptive regression model is used to examine the relative importance of cash and government support prices in determining cotton production over time. The results show that the cash price is more important as a source of price information for cotton producers than the government program price. The cash price was shown to have a greater influence on acreage response in every year, including periods thought to be dominated by government commodity programs.

Keywords

adaptive regressioncotton acreage responseprice expectations
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 28 , Issue 1 , July 1996 , pp. 203 - 210
Copyright
Copyright © Southern Agricultural Economics Association 1996

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