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Acreage Response Under Canada's Western Grains Stabilization Program
Author(s) -
Miranda Mario J.,
Novak Frank,
Lerohl Mel
Publication year - 1994
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 - 10.2307/1243628
Subject(s) - hectare , revenue , variance (accounting) , agricultural economics , economics , ex ante , estimation , government (linguistics) , aggregate (composite) , intervention (counseling) , economic interventionism , econometrics , geography , finance , agriculture , macroeconomics , psychology , linguistics , philosophy , materials science , accounting , archaeology , management , psychiatry , politics , political science , law , composite material
Abstract An aggregate acreage supply model for the Canadian prairies is estimated assuming that farmers base short‐run acreage decisions on the ex ante rational expectation and variance of per‐hectare revenue. To account for the effects of government intervention, a structural model of the Western Grains Stabilization Program is incorporated into the estimation framework. Results indicate the Program contributed to modest increases in cropped acreage between 1976 and 1990.