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Supply Response and Impact of Government-Supported Crops on the Texas Vegetable Industry

Published online by Cambridge University Press:  15 September 2016

Fermin Ornelas  and
C. Richard Shumway
Fermin Ornelas
Affiliation:
American Express in Phoenix, AZ
C. Richard Shumway
Affiliation:
Texas A&M University
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Abstract

Supply functions, elasticity estimates, and nonjointness test results consistently indicated that few commodities compete economically in the production of six major Texas vegetables (cabbage, cantaloupes, carrots, onions, potatoes, and watermelons). Significant bias effects caused by government-supported commodities, fixed inputs, and technological change were observed and measured. Nonnested test results for the hypothesis of sequential decision making by vegetable producers were inconclusive, but they gave greater likelihood support to sequential than to contemporaneous decision making.

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Type
Articles
Information
Agricultural and Resource Economics Review , Volume 22 , Issue 1 , April 1993 , pp. 27 - 36
Copyright
Copyright © 1993 Northeastern Agricultural and Resource Economics Association 

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