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Quality‐Adjusted Price and Quantity Indices for Pesticides
Author(s) -
FernandezCornejo Jorge,
Jans Sharon
Publication year - 1995
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/1243232
Subject(s) - pesticide , index (typography) , price index , agriculture , quality (philosophy) , toxicology , crop , hazardous waste , environmental science , statistics , mathematics , econometrics , agronomy , biology , computer science , ecology , world wide web , philosophy , epistemology
Abstract Quality‐adjusted price indices are calculated for pesticides used on major crops in U.S. agriculture for 1967–92 using hedonic methods. Pesticide potency, hazardous characteristics, and persistence in the environment are used as quality characteristics. Separate hedonic functions are estimated for pesticides by end‐use (crop) and major pesticide class. Price indices are aggregated using chained Tornqvist indices. Adjusted quantity indices are computed using pesticide expenditures. The adjusted price index rose steadily, reaching in 1992 around 2.5 times the level of 1968. Pesticide use at constant quality peaked in 1981 at a level substantially higher than the peak reached by the unadjusted index.