Theses and Dissertations at Montana State University (MSU)

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    Retained interest in seedstock bulls: a transaction cost analysis
    (Montana State University - Bozeman, College of Agriculture, 2021) Kaiser, Rebecca Marie; Chairperson, Graduate Committee: Randal R. Rucker
    Seedstock cattle producers invest in bulls to introduce high quality genes into their cattle herds. Because the genetic traits bulls pass on to their calves are sometimes unobservable before breeding season, the quality of the bull at the time of the sale is uncertain. Some producers choose to sell bulls with retained semen interest, which grants them rights to the specified percentage of revenues from semen sales from the bull after it has been sold. This thesis examines the practice of retained semen interest in bulls and its effects on sale prices for the bull. After adapting the theory of auctions and share contracts and developing a theory of retained interest, I empirically test my hypotheses that 1) if there is more uncertainty regarding the attributes of the bull, the producer will be more likely to use a retained interest contract, and 2) a retained interest contract increases the value of a bull. I use a logit model to test the first hypothesis and hedonic price model, estimated using OLS, to test the second model. I find evidence to support both predictions, which supports my transaction cost model of contract choice. After controlling for quality, producers are more likely to retain interest in bulls that have greater variation in their quality. Also, bulls that are sold with retained interest earn significant premiums compared to bulls sold with lump sum prices. These results add to the transaction cost and share contract economic literature, as well as inform seedstock producers about the economic costs and benefits of retaining semen interest.
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    Price relationships in the U.S. nitrogen fertilizer industry
    (Montana State University - Bozeman, College of Agriculture, 2018) Gumbley, Thomas J.; Chairperson, Graduate Committee: Anton Bekkerman
    This study estimates the price dynamics in the U.S. nitrogen fertilizer industry, measures information flow efficiency in spatially separated fertilizer markets, and measures to what extent structural changes in corn and natural gas markets may have altered these price dynamics and information flow relationships. A vector error correction model is used to measure the short-run and long-run relationships between nitrogen fertilizer markets, natural gas markets, and corn markets. The results show that price information flows from the central market of New Orleans to inland regional markets. The efficiency of this information flow increased in the period after the Renewable Fuel Standards increased the demand for corn.
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    Impacts of copula modeling and parametric variation on revenue policy premium rates in multiple peril crop insurance
    (Montana State University - Bozeman, College of Agriculture, 2015) Simonds, Seth Neil; Chairperson, Graduate Committee: Vincent H. Smith; Joseph Atwood (co-chair)
    Federally subsidized multiple peril crop insurance is the primary mechanism by which U.S. farmers receive public income. This study investigates the role of copula modeling in developing revenue product premium rates for multiple peril crop insurance. Simulation and empirical experiments are used to examine the viability of a ratemaking practice that relies on an assumed Normal copula. This study shows that the assumption of a copula cannot be statistically justified and that premium rates generated within copulas and between alternative copulas can diverge as a function of the marginal price and yield distributions, their relationship and the level of protection a producer elects. The current ratemaking practice does not account for the imprecision of premium rates implicit to a copula based approach. A copula selection method is proposed and examined in order to reduce premium rate imprecision resulting from copula misspecification. A non-copula based ratemaking method may better meet the overt policy objectives of multiple peril crop insurance.
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    The effects of anti-price gouging laws in the wake of a hurricane
    (Montana State University - Bozeman, College of Agriculture, 2015) Tarrant, Michael Steven; Chairperson, Graduate Committee: Randal R. Rucker
    The southeastern coast of the United States is vulnerable to hurricanes and the destruction they cause. Previous literature has explored hurricanes' impacts on growth in coastal counties of the United States, but not the inherently linked effects of anti-price gouging (APG) laws, which prohibit firms from significantly increasing prices during a declared state of emergency. The relationship between APG laws and economic growth following a hurricane is estimated with a fixed effect model and county-level quarterly wage data for the period 1990-2012. Results suggest that hurricane-stricken counties are worse off in the presence of APG laws, with the most pronounced negative effects in the accommodations industry. The deleterious effects of APG laws, however, are short-lived; affected counties appear to rebound once the laws are no longer in effect. As the first paper to empirically examine the economic effects of APG laws, these results counter common political thinking and provide empirical support of standard economic theory regarding price ceilings.
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    Estimating the aggregate U.S. agricultural supply function
    (Montana State University - Bozeman, College of Agriculture, 1979) LaFrance, Jeffrey Thomas
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    Price and substitution elasticities for wheat related to price policies for wheat
    (Montana State University - Bozeman, College of Agriculture, 1958) Liu, Charles Yen-Do
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    A dynamic price and supply model of the U.S. pork industry
    (Montana State University - Bozeman, College of Agriculture, 1984) Black, Cecil Dee
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    The development of a milk pricing formula at the processor-distributor level for Montana
    (Montana State University - Bozeman, College of Agriculture, 1966) Vesterby, Marlow Clayton
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    Simulation of moving average hedging strategies for winter wheat
    (Montana State University - Bozeman, College of Agriculture, 1977) Brogan, Al Stevens
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