Data from Kansas State University Provide New Insights into Agricultural Economics
2012 MAY 11 - (VerticalNews.com) -- According to the authors of recent research from Manhattan, Kansas, "Irrigation water demand is estimated using field-level panel data from Kansas over 16 years. The cost of pumping varies over time due to changes in energy prices and across space due to differences in the depth to water."
"Exploiting this variation allows us to estimate the demand elasticity while controlling for field-farmer and year fixed effects. Fixed effects also allow us to control for land use without an instrument or assumptions about the distribution of errors," wrote N.P. Hendricks and colleagues, Kansas State University.
The researchers concluded: "Our estimates of water demand are used to calculate the cost of reducing irrigation water use through water pricing, irrigation cessation, and intensity-reduction programs."
Hendricks and colleagues published their study in the Journal of Agricultural and Resource Economics (Fixed Effects Estimation of the Intensive and Extensive Margins of Irrigation Water Demand. Journal of Agricultural and Resource Economics, 2012;37(1):1-19).
For additional information, contact N.P. Hendricks, Kansas State University, Dept. of Agr Econ, Manhattan, KS 66506, United States.
Publisher contact information for the Journal of Agricultural and Resource Economics is: Western Agricultural Economics Assoc, C, O Deevon Bailey, Utah State Univ, Economics Dept, 3535 Old Main Hill, Logan, UT 84322-3530, USA.
Keywords: City:Manhattan, State:Kansas, Country:United States, Region:North and Central America
This article was prepared by VerticalNews Economics editors from staff and other reports. Copyright 2012, VerticalNews Economics via VerticalNews.com.