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The degree of vertical integration in the U.S. sugar industry between raw sugar processing and sugar refining cannot be explained using theories of vertical integration based on transaction costs (e.g. Williamson). We graphically decompose the economic rents accruing to each level in the marketing channel. Different strategies of several major sugar producing, processing and refining entities with regard to sugar quota policy are explored.

Income convergence among the G-7 countries was demonstrated using Theil's inequality (entropy) index. G-7 convergence was also found for three potential factors of influence on economic growth: government expenditure, investment expenditure, and industrial employment. Pairwise cointegration tests indicated that income inequality was cointegrated with the other three inequality measures for the time period of 1950-88. Finally, Johansen's I(2) multi-cointegration tests indicated that three of the four inequality measures (i.e. income, investment expenditure, and industrial employment) were cointegrated suggesting that there exists a long-run equilibrium between the inequality in income, investment expenditure, and industrial employment.

The household production approach is used to characterize the household's preference toward nutrients in food consumption. Elasticities of substitution and Hicksian price elasticities are estimated, price- and expenditure-nutrient elasticities are calculated. Results show that protein is the most expensive nutrient, and that nutrients played an important role in determining households' food consumption.

This study examines the financial situation of the Farm Credit System Banks for Cooperatives using comparative analysis for the period 1978 through 1991. Profitability and leverage measures of the Banks for Cooperatives are compared with similar measures of large commercial banks. The Banks for Cooperatives were found to have performed as well as large commercial banks. Some differences can be explained as compatible with differences in the goals and objectives of a cooperative versus an investor-owned firm. Most differences can be attributed to the financial strength of the Banks for Cooperatives relative to the commercial banking industry.

During the 1970s and 1980s the environmental agenda moved to prominent position among legal considerations in agriculture. One element of this agenda involves farmer and lender liability for cleanup cost under CERCLA as amended by SARA. This study examines the potential liability for lenders under this legislation. Next, the study investigates some potential actions and consequences for intermediaries from a theoretical finance perspective. Specifically, the paper addresses changes in credit risk resulting from the emerging agenda. In addition, the adverse selection problem in credit is examined for potential insights into the credit decision. Finally, the study concludes with practical advise for financial intermediaries in agriculture.

During the past twenty years there has been a growing recognition of the consequences of the randomness of crop yields and prices for farm management and agricultural policy decisions. Concomitantly, the literature has recognized the possibility of nonnormality of yields and prices. This study demonstrates one approach to modeling nonnormality in crop yields over time. Specifically, this study estimates an inverse hyperbolic sine transformation of crop yields in the southeastern United States.

Recent interest in modeling randomness in crop yields has typically focused on two distinct areas: stochastic trend and non-normality. However, the estimated errors from the stochastic trend model fail a test for normality. Thus, a transformation is used to model the non-normality of errors within the stochastic trend model.

This study examined the relationship between debt position and choice of marketing instrument. Specifically, this study employed first and second degree stochastic dominance, and stochastic dominance with respect to a function to determine whether the efficient marketing instrument changes between debt positions. The results indicate that the choice of marketing instrument does vary with debt position in some marketing periods if the decision-maker is moderately risk averse.