Ryan Larsen, James W. Mjelde, Danny Klinefelter and Jared Wolfley
What copulas are, their estimation, and use is illustrated using a geographical diversification example. To accomplish this, dependencies between county-level yields are…
Abstract
Purpose
What copulas are, their estimation, and use is illustrated using a geographical diversification example. To accomplish this, dependencies between county-level yields are calculated for non-irrigated wheat, upland cotton, and sorghum using Pearson linear correlation and Kendall's tau. The use of Kendall's tau allows the implementation of copulas to estimate the dependency between county-level yields. The paper aims to discuss these issues.
Design/methodology/approach
Four parametric copulas, Gaussian, Frank, Clayton, and Gumbel, are used to estimate Kendall's tau. These four estimates of Kendall's tau are compared to Pearson's linear correlation, a more typical measure of dependence. Using this information, functions are estimated to determine the relationships between dependencies and changes in geographic and climate data.
Findings
The effect on county-level crop yields based on changes of geographical and climate variables differed among the different dependency measures among the three different crops. Implementing alternative dependency measures changed the statistical significance and the signs of the coefficients in the sorghum and cotton dependence functions. Copula-based elasticities are consistently less than the linear correlation elasticities for wheat and cotton. For sorghum, however, the copula-based elasticities are generally larger. The results indicate that one should not take the issue of measuring dependence as a trivial matter.
Originality/value
This research not only extends the current literature on geographical diversification by taking a more detailed examination of factors impacting yield dependence, but also extends the copula literature by comparing estimation results using linear correlation and copula-based rank correlation.
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Ryan Larsen, David Leatham and Kunlapath Sukcharoen
Portfolio theory suggests that geographical diversification of production units could potentially help manage the risks associated with farming, yet little research has been done…
Abstract
Purpose
Portfolio theory suggests that geographical diversification of production units could potentially help manage the risks associated with farming, yet little research has been done to evaluate the effectiveness of a geographical diversification strategy in agriculture. The paper aims to discuss this issue.
Design/methodology/approach
The paper utilizes several tools from modern finance theory, including Conditional Value-at-Risk (CVaR) and copulas, to construct a model for the evaluation of a diversification strategy. The proposed model – the copula-based mean-CVaR model – is then applied to the producer’s acreage allocation problem to examine the potential benefits of risk reduction from a geographical diversification strategy in US wheat farming. Along with the copula-based model, the multivariate-normal mean-CVaR model is also estimated as a benchmark.
Findings
The mean-CVaR optimization results suggest that geographical diversification is a viable risk management strategy from a farm’s profit margin perspective. In addition, the copula-based model appears more appropriate than the traditional multivariate-normal model for conservative agricultural producers who are concerned with the extreme losses of farm profitability in that the later model tends to underestimate the minimum level of risk faced by the producers for a given level of profitability.
Originality/value
The effectiveness of geographical diversification in US wheat farming is evaluated. As a methodological contribution, the copula approach is used to model the joint distribution of profit margins and CVaR is employed as a measure of downside risk.
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Joleen C. Hadrich, Ryan Larsen and Frayne E. Olson
The purposes of this paper are to determine the financial, structural, and tax policy factors that influence the probability of buying machinery and the intensity of the machinery…
Abstract
Purpose
The purposes of this paper are to determine the financial, structural, and tax policy factors that influence the probability of buying machinery and the intensity of the machinery purchases on North Dakota farming operations.
Design/methodology/approach
A double hurdle model was used to estimate the two decisions: purchasing machinery and the intensity of the machinery purchase. Data were collected from the North Dakota Farm and Ranch Management Business Association Annual Summaries for 1993-2011.
Findings
Results demonstrated that the tax incentive provided by Section 179 deduction had the largest positive effect on machinery purchases when compared to operating profit margin, leverage ratio, producer type, and experience of the principal operator of the farm.
Originality/value
Section 179 deductions have changed substantially over the 19-year period studied and have not been analyzed in previous machinery investment work. This analysis puts a numerical value on the effect of Section 179 deductions over time and demonstrates the large effect tax incentives have on machinery purchase decisions and levels.
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The author explored the direct and indirect relationships between policing and citizen satisfaction, considering both the policing and neighborhood context at the regional level.
Abstract
Purpose
The author explored the direct and indirect relationships between policing and citizen satisfaction, considering both the policing and neighborhood context at the regional level.
Design/methodology/approach
The author conducted regression and path analysis based on the combined data of 190 local governments from the Korean National Police Agency, the Korean Crime Victim Survey and Statistics Korea.
Findings
Patrol officers, a public safety budget, criminal arrests and perceived safety were positively associated with citizen satisfaction, whereas drinking rate was negatively associated with citizen satisfaction. The arrest rate partially mediated the relationship between the public safety budget and citizen satisfaction. In addition, the relationship between drinking rate and citizen satisfaction with police was partially mediated by perceived safety.
Practical implications
Police and local governments should enhance citizen satisfaction by improving poor indicators of policing and neighborhood context and by considering the dynamics between factors.
Originality/value
Studies analyzing the mediating effects on citizen satisfaction with police are still lacking.
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Miriam Mota, Bernardete Sequeira, Manuela Guerreiro and Patrícia Pinto
Although tourism destination image is a widely studied subject, the perspective of local players is generally neglected, albeit its relevance for informing the positioning and…
Abstract
Although tourism destination image is a widely studied subject, the perspective of local players is generally neglected, albeit its relevance for informing the positioning and brand management strategies of the places is recognized. This chapter aims to determine the perceptions of key local public organizations from the historical-cultural and heritage sectors and companies linked to commerce and tourism (private sector) about the historic center of a United Nations Educational, Scientific, and Cultural Organization (UNESCO) World Heritage site in Brazil. The results of this investigation contribute to the development of marketing and tourism development strategies in historic towns, especially those classified as World Heritage by UNESCO.
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Anthony Worsley, Wei Wang and Stacey Ridley
Agriculture is a major generator of wealth and employment in Australia. However, it faces a range of economic and environmental challenges which require substantial community…
Abstract
Purpose
Agriculture is a major generator of wealth and employment in Australia. However, it faces a range of economic and environmental challenges which require substantial community support. The purpose of this paper is to examine Australian adults’ Australian knowledge of, and attitudes towards, Australian agriculture.
Design/methodology/approach
Online questionnaire survey of 1,026 adults conducted nationwide during August 2012.
Findings
Most respondents had little knowledge of even the basic aspects of the industry but they approved of farmers’ performance of their roles. Latent class analysis showed that there are two groups of consumers with low and lower levels of knowledge. The respondents’ age, rural residence and universalist values were positive predictors of agricultural knowledge.
Research limitations/implications
This was a cross-sectional, quota-based survey which examined only some aspects of agriculture. However, the findings suggest that more communication with the general public about the industry is required in order to build on the positive sentiment that exists within the community.
Practical implications
More education about agriculture in schools and higher education is indicated.
Social implications
The poor state of knowledge of agriculture threatens the social contract upon which agricultural communities depend for survival.
Originality/value
The study highlights the poor state of general knowledge about agriculture in Australia. The findings could be used as a baseline against which the efficacy of future education programmes could be assessed.
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War is one of the worst characteristics of human nature. Wars over territory, religion, and governance were and are always present through history. War and tourism seem dissonant…
Abstract
War is one of the worst characteristics of human nature. Wars over territory, religion, and governance were and are always present through history. War and tourism seem dissonant at first glance. However, the post effects of war enable its components, such as battlefields and artefacts, to become tourist attractions. People share the impetus to visit war attractions such as battlefields, military museums, cemeteries, memorials, and other war-related sites. There is a supply for this type of tourism in exchange for the demand. This type of tourism is referred to in the literature as battlefield tourism. The meaning and definition of battlefield tourism are the main aim of this chapter. What is battlefield tourism? What are the components of battlefield tourism? How can battlefield tourism be defined? These are the primary questions this study tries to address.
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Noel Scott, Brent Moyle, Ana Cláudia Campos, Liubov Skavronskaya and Biqiang Liu
Opal Donaldson and Evan W. Duggan
The purpose of this research is to develop a Social Information System research model that uses the core constructs intrinsic motivation, extrinsic motivation, and amotivation to…
Abstract
Purpose
The purpose of this research is to develop a Social Information System research model that uses the core constructs intrinsic motivation, extrinsic motivation, and amotivation to explain social networking adoption among tweens, teens and young adults.
Methodology
In developing the research model, we triangulated theories to examine the different orientations of motivation. The data collection process included a stratified sample size of 270 respondents. Following data collection we analyzed the results using structural equation modeling in the Partial Least Square software package.
Findings
The constructs amotivation, intrinsic and extrinsic motivations were all statistically significant in explaining continuance intention to use social networking services (SNS).
Practical implications
Researchers and practitioners have intimated that although there has been a rise in the number of persons accessing and becoming members of SNS, several subscribers who join subsequently leave after a minimal period. The practical implication of this study lies in providing a preliminary understanding of what determines or inhibits continuance intention of SNS membership.
Originality/value
Despite efforts, research in IS and technology acceptance literature regarding SNS diffusion is limited in scope. The theoretical implication of this study lies in the model that has been developed and validated to provide a more effective tool for the scholarly evaluation of SNS adoption. Existing adoption models are insufficient to explain voluntary technology usage of this nature.