Agricultural Economics & Economics
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Situated jointly within MSU's College of Agriculture and College of Letters and Sciences, our department offers a unique opportunity for students with diverse interests to learn skills in critical analysis, logical problem solving, data and policy analysis, written and oral communication, business management. We train individuals who will make a big difference in the world by applying solid critical thinking skills. Our award-winning faculty has expertise in a wide variety of fields. We conduct cutting-edge research and teach a myriad of courses.
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Item The Farm Workforce Modernization Act and warnings from previous immigration reforms(Wiley, 2024-06) Charlton, DianeImmigrants are vital to agricultural production in the United States, and nearly half the crop workforce is unauthorized. Previous attempts to reform the immigration system have not successfully legalized the farm workforce or caused substantive rise in farmworker incomes. Current proposed legislation would legalize unauthorized farmworkers, streamline the H-2A agricultural guest worker program, and provide a pathway to citizenship for H-2A workers while simultaneously requiring agricultural employers to check the immigration status of workers using E-Verify. This paper discusses proposed farm labor legislation in the context of current farm labor market conditions, outcomes of historical farm labor and immigration policies, and ongoing immigration trends.Item Don't Judge a Wine by Its Closure: Price Premiums for Corks in the U.S. Wine Market(2019-02-19) Bekkerman, Anton; Brester, Gary W.For many purchases, consumers often possess only limited information about product quality. Thus, observable product characteristics are used to determine expected quality levels when making purchase decisions. We use more than 1 million weekly scanner-level observations from grocery stores across ten U.S. markets between September 2009 and August 2012 to examine how consumers value a wine bottle\'s closure type (i.e., cork or screw cap). We focus on lower-priced wines—those with sale prices less than $30 per 750 milliliter bottle—to more accurately evaluate decisions of consumers for whom seeking additional information about wine quality is likely more costly than the benefits derived from that information. Using both pooled ordinary least squares and quantile regressions to estimate price premiums for bottles with corks or screw caps, we find that U.S. consumers are willing to pay, on average, approximately 8% more (about $1.00) for a bottle of wine that has a cork closure. In addition, we show that the size of this premium increases as wine prices decline. (JEL Classifications: D81, M31, Q11)Item Employer-Sponsored Education Assistance and Graduate Program Choice, Cost, and Finance(2019-06) Gilpin, Gregory A.; Kofoed, MichaelThis paper studies the impact of the Economic Growth and Tax Relief Reconciliation Act of 2001 that amended employer-sponsored education assistance (ESEA) fringe benefits from taxable to nontaxable for graduate studies. ESEA is an integral part of graduate education finance and is the dominant non-loan source of student aid. Using difference-in-difference and triple-difference specifications, we empirically evaluate educational outcomes related to graduate education choice, cost, and finance. The empirical results suggest that post-law reform, non-degree graduate students who exercise ESEA benefits are 12.3% more likely to attend open-admission institutions, 12.5% less likely to attend in-state, 10.3% more likely to attend for-profit colleges, and no changes are identified on cost or education debt loads, relative to their pre-law reform peers. As a whole, no differences in program choice are observed for degree-seeking graduate students. Additionally, the estimates suggest that while degree-seeking graduate students applying ESEA attend programs that cost, on average, $1170 more, no changes are identified post-law reform (2008 dollars). Furthermore, degree-seeking graduate students that apply ESEA benefits take out, on average, $1530 less in student loans, and this declines by an additional $1474 post-law reform (2008 dollars). Analysis by graduate program and also by gender and age suggest substantial heterogeneity from graduate program educational outcomes, especially for MBA students.Item From biology to behavior: a cross-disciplinary seminar series surrounding added sugar and low-calorie sweetener consumption(2019-06) Sylvetsky, A. C.; Hiedacavage, A.; Shah, H.; Pokorney, P.; Baldauf, S.; Merrigan, K.; Smith, Vincent H.; Long, M. W.; Black, R.; Robien, K.; Avena, N.; Gaine, C.; Greeberg, D.; Wootan, M. G.; Talegawkar, S.; Colon-Ramos, U.; Leahy, M.; Ohmes, A.; Mannella, J. A.; Sachek, J.; Dietz, W. H.Introduction This report presents a synopsis of a three‐part, cross‐sector, seminar series held at the George Washington University (GWU) in Washington, DC from February–April, 2018. The overarching goal of the seminar series was to provide a neutral forum for diverse stakeholders to discuss and critically evaluate approaches to address added sugar intake, with a key focus on the role of low‐calorie sweeteners (LCS). Methods During three seminars, twelve speakers from academic institutions, federal agencies, non‐profit organizations, and the food and beverage industries participated in six interactive panel discussions to address: 1) Do Farm Bill Policies Impact Population Sugar Intake? 2) What is the Impact of Sugar‐sweetened Beverage (SSB) Taxes on Health and Business? 3) Is Sugar Addictive? 4) Product Reformulation Efforts: Progress, Challenges, and Concerns? 5) Low‐calorie Sweeteners: Helpful or Harmful, and 6) Are Novel Sweeteners a Plausible Solution? Discussion of each topic involved brief 15‐minute presentations from the speakers, which were followed by a 25‐minute panel discussion moderated by GWU faculty members and addressed questions generated by the audience. Sessions were designed to represent opposing views and stimulate meaningful debate. Given the provocative nature of the seminar series, attendee questions were gathered anonymously using Pigeonhole™, an interactive, online, question and answer platform. Results This report summarizes each presentation and recapitulates key perspectives offered by the speakers and moderators. Conclusions The seminar series set the foundation for robust cross‐sector dialogue necessary to inform meaningful future research, and ultimately, effective policies for lowering added sugar intakes.Item Was the First Public Health Campaign Successful?(2019-04) Anderson, D. Mark; Charles, Kerwin Kofi; Olivares, Claudio Las Heras; Rees, Daniel I.The US tuberculosis (TB) movement pioneered many of the strategies of modern public health campaigns. Using newly transcribed mortality data at the municipal level for the period 1900-1917, we explore the effectiveness of public health measures championed by the TB movement, including the establishment of sanatoriums and open-air camps, prohibitions on public spitting and common cups, and requirements that local health officials be notified about TB cases. Our results suggest that these and other anti-TB measures can explain, at most, only a small portion of the overall decline in pulmonary TB mortality observed during the period under study. (JEL, H51, I12, I18, N31, N32)Item Are Booster Seats More Effective than Child Safety Seats or Seat Belts at Reducing Traffic Fatalities among Children?(2019-01) Anderson, D. Mark; Sandholt, SinaIn an effort to increase booster seat use among children, the National Highway Traffic Safety Administration is encouraging state legislators to promote stricter booster seat laws, yet there is a paucity of information on booster seat efficacy relative to other forms of restraint. Using data from the Fatality Analysis Reporting System for the period 2008-16, the current study examines the effectiveness of booster seats relative to child safety seats and adult seat belts. For children two to five years of age, we find some evidence to suggest that booster seats are the least effective form of restraint. For children six to nine years of age, all three forms of restraint appear equally effective.Item The Basel accords, capital reserves, and agricultural lending(2018-05) Brester, Gary W.; Watts, Myles J.Purpose The safety and soundness of financial institutions has become a leading worldwide issue because of the recent global financial crisis. Historically, financial crises have occurred approximately every 20 years. The worst financial crisis in the last 75 years occurred in 2008–2009. US regulatory efforts with respect to capital reserve requirements are likely to have several unintended consequences for the agricultural lending sector—especially for smaller, less-diversified (and often, rural agricultural) lenders. The paper discusses these issues. Design/methodology/approach Simulation models and value-at-risk (VaR) criteria are used to evaluate the impact of capital reserve requirements on lending return on equity. In addition, simulations are used to calculate the effects of loan numbers and portfolio diversification on capital reserve requirements. Findings This paper illustrates that increasing capital reserve requirements reduces lending return on equity. Furthermore, increases in the number of loans and portfolio diversification reduce capital reserve requirements. Research limitations/implications The simulation methods are a simplification of complex lending practices and VaR calculations. Lenders use these and other procedures for managing capital reserves than those modeled in this paper. Practical implications Smaller lending institutions will be pressured to increase loan sector diversification. In addition, traditional agricultural lenders will likely be under increased pressure to diversify portfolios. Because agricultural loan losses have relatively low correlations with other sectors, traditional agricultural lenders can expect increased competition for agricultural loans from non-traditional agricultural lenders. Originality/value This paper is novel in that the authors illustrate how lender capital requirements change in response to loan payment correlations both within and across lending sectors.Item The Influence of Genetic Modification Technologies on U.S. and EU Crop Yields(2019-01) Brester, Gary W.; Atwood, Joseph; Watts, Myles J.; Kawalski, AnitaOver 90% of U.S. corn and soybeans are planted with genetically modified (GM) seed varieties. We use a flexible, nonlinear functional form to investigate yield differences for corn, soybeans, and wheat between the United States and the European Union (which bans the use of GM technologies). U.S. corn and soybean yields increased relative to EU yields since the introduction of GM technologies. EU wheat yields (for which GM technologies are not commercially available in either region) continue to increase relative to the United States. Thus, the EU ban on GM technologies has likely increased the difference between corn and soybean yields between the two regions.Item Medical marijuana laws and workplace fatalities in the United States(2018-10) Anderson, D. Mark; Rees, Daniel I.; Tekin, ErdalAIMS The aim of this research was to determine the association between legalizing medical marijuana and workplace fatalities. DESIGN Repeated cross-sectional data on workplace fatalities at the state-year level were analyzed using a multivariate Poisson regression. SETTING To date, 29 states and the District of Columbia have legalized the use of marijuana for medicinal purposes. Although there is increasing concern that legalizing medical marijuana will make workplaces more dangerous, little is known about the relationship between medical marijuana laws (MMLs) and workplace fatalities. PARTICIPANTS All 50 states and the District of Columbia for the period 1992-2015. MEASUREMENTS Workplace fatalities by state and year were obtained from the Bureau of Labor Statistics. Regression models were adjusted for state demographics, the unemployment rate, state fixed effects, and year fixed effects. FINDINGS Legalizing medical marijuana was associated with a 19.5% reduction in the expected number of workplace fatalities among workers aged 25-44 (incident rate ratio [IRR], 0.805; 95% CI, .662-.979). The association between legalizing medical marijuana and workplace fatalities among workers aged 16-24, although negative, was not statistically significant at conventional levels. The association between legalizing medical marijuana and workplace fatalities among workers aged 25-44 grew stronger over time. Five years after coming into effect, MMLs were associated with a 33.7% reduction in the expected number of workplace fatalities (IRR, 0.663; 95% CI, .482-.912). MMLs that listed pain as a qualifying condition or allowed collective cultivation were associated with larger reductions in fatalities among workers aged 25-44 than those that did not. CONCLUSIONS The results provide evidence that legalizing medical marijuana improved workplace safety for workers aged 25-44. Further investigation is required to determine whether this result is attributable to reductions in the consumption of alcohol and other substances that impair cognitive function, memory, and motor skills.Item Vulnerability of dryland agricultural regimes to economic and climatic change(2018) Lawrence, Patrick G.; Maxwell, Bruce D.; Rew, Lisa J.; Ellis, Colter; Bekkerman, AntonLarge-scale agricultural systems are central to food production in North America, but their ubiquity could be threatened by vulnerability to economic and climatic stressors during the 21st century. Prior research has focused on understanding the influence of climatic changes on physiological processes in these systems and has increasingly recognized that other factors such as social, economic, and ecological variation and the interaction among these factors may cause unexpected outcomes. We assess the vulnerability of large-scale agricultural systems to variation in multiple stressors and investigate alternative adaptation strategies under novel conditions. We examine dryland farms in Montana’s northern Great Plains (NGP), which represent large-scale semiarid agricultural systems that are likely to be affected by climate change. Farmers in the NGP have experienced three distinct periods of economic- and drought-related stressors since the 1970s, primarily driven by uncertainty in soil moisture, but at times amplified by uncertainty in nitrogen fertilizer and wheat prices. We seek to better understand how farmers evaluate and respond to these conditions. The results indicate that although farmers perceived few alternative agronomic options for adapting to drought, strategies for adapting to high input prices were more plentiful. Furthermore, we find that increasing the overall resilience of dryland agricultural systems to economic and climatic uncertainty requires intrinsic valuation of crop rotations and their field-specific response to inputs.