Progress 09/01/06 to 08/31/09
Outputs
OUTPUTS: 2009 was the final year of this project, which began in 1994. The NICPRE newsletter was published and distributed four times, which contained research articles (from Cornell and other universities) on generic advertising and promotion economics. Two NEC-63 (research organization on commodity promotion economics) conferences were organized and held in San Diego, CA (spring 2009) and Banff, Canada (fall 2009). Three projects were completed. The first, which has been accepted for publication by a journal in 2010 and was presented at a research conference in 2009, used experimental economics to determine whether there were certain demographic and socioeconomic characteristics that make some groups ore prone to food scares. Using mad cow disease as an example of a serious food scare, we find that certain population segments are highly sensitive (infrequent beef consumers and people concerned over food safety) and other segments not sensitive at all (beef lovers) to changes in beef consumption in response to negative media information regarding mad cow disease. This study was accepted for publication in 2010 in the journal Agricultural and Resource Economics Review. A second project examined the direct and indirect effects of U.S. export promotion for rice, wheat, and sorghum. Using a demand-systems econometric model, we found that export promotion for all three grains had positive and statistically significant own effects, e.g., rice promotion increased rice exports. We also found that U.S. export promotion of each of the three grains had negative effects on exports from other countries. This study was accepted for publication in the journal Applied Economics in 2009. A third project evaluated the impact of U.S. rice export promotion on rice exports. The results indicated a positive impact of rice promotion, as well as a large return on investment for this promotion. This study was accepted for publication in the journal Agribusiness: An International Journal for 2010. PARTICIPANTS: In 2009, my collaborators on this project were Dr. Kent Messer, Dr. Collin Payne, and Ms Pimbucha Rusmevichientong. Drs. Messer and Payne worked on the mad cow study with me. Ms. Rusmevichientong was an M.S. graduate student who did her thesis on U.S. rice export promotion. She worked on econometric analysis, simulation, and report writing on these two studies. TARGET AUDIENCES: Target audience includes: other researchers interested in commodity promotion economics; United States Department of Agriculture; management of various commodity promotion checkoff programs; several state departments of agriculture. PROJECT MODIFICATIONS: Nothing significant to report during this reporting period.
Impacts
This project impacted policy makers and researchers. Researchers were impacted because several methodological studies were published that pushed out the frontiers in applied econometrics. Policy makers were impacted since they benefited from new information regarding the impacts of commodity promotion programs.
Publications
- Kaiser, Harry M., Collin Payne, and Kent Messer. Methodological Strategy for Identifying Characteristics That Predict Changes in Beef Demand After a Media-Induced Food Scare. Presentation at NEC-63 Research Conference, San Diego, CA, February 2, 2009.
- Messer, Kent, Harry M. Kaiser, Collin Payne, and Brian Wansink. Can Advertising Alleviate Consumer Concerns About Mad Cow Disease Applied Economics. 41(2009):1466-4283.
- Rusmevichientong, Pimbucha and Harry M. Kaiser. Are There Halo Effects of U.S. Grain Export Promotion Applied Economics. 41(2009):1466-4283.
- Rusmevichientong, Pimbucha and Harry M. Kaiser. Measuring the Effectiveness of U.S. Rice Export Promotion Programs. Agribusiness: An International Journal. 25(2009):215-230.
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Progress 09/01/07 to 08/31/08
Outputs
OUTPUTS: In 2008, the NICPRE newsletter was published and distributed four times, which contained research articles (from Cornell and other universities) on generic advertising and promotion economics. One NEC-63 (research organization on commodity promotion economics) conference was organized and held in Hilton Head, South Carolina (spring). A theoretical study was completed that showed under which conditions large firms would benefit more than small firms (and vice versa) by a nonparallel increase in demand caused by generic promotion. This study, accepted for publication by the journal Applied Economics, is important because the basic model can be used by any industry and can provide insight in establishing minimum thresholds for exempting small firms from having to pay for generic promotion programs. An economic analysis of generic butter and cheese advertising in Canada was completed. The results indicate that cheese advertising is far more effective in Canada than is butter advertising. An experimental analysis on several proposed policies for lowering quota values in Quebec was completed. The results suggest that a policy that excludes the highest 15 percent of bids and offers has the greatest impact on reducing quota values. One study completed in an earlier period and reported on last year on an experimental study of the problem with generic advertising was published in 2008. Two studies on the effectiveness of U.S. rice export promotion, which were completed in 2007, were submitted to and accepted by two academic journals for publication (Agribusiness: An International Journal and Applied Economics). PARTICIPANTS: In 2008, my collaborators on this project were Dr. Yuqing Zheng, Dr. Kent Messer, Dr. William Schulze, Dr. Maurice Doyon, Dr. John Cranfield, and Ms Pimbucha Rusmevichientong. Dr. Zheng worked on the nonparallel demand increase paper with me. Drs. Messer and Schulze worked on the problem with generic advertising paper. Dr. Doyon worked on the two Canadian projects, while Dr. Cranfield worked on the Candian generic butter and cheese advertising evaluation. Ms. Rusmevichientong was an M.S. graduate student who did her thesis on U.S. rice export promotion. She worked on econometric analysis, simulation, and report writing on these two studies. TARGET AUDIENCES: Target audience includes: other researchers interested in commodity promotion economics; United States Department of Agriculture; management of various commodity promotion checkoff programs; several state departments of agriculture. Efforts include: extension and outreach; oral presentations on research results; written reports on research results; preparing popular press articles; workshops, industry feedback meetings. PROJECT MODIFICATIONS: Nothing significant to report during this reporting period.
Impacts
This project impacted policy makers and researchers. Researchers were impacted because several methodological studies were published that pushed out the frontiers in applied econometrics. Policy makers were impacted since they benefited from new information regarding the impacts of commodity promotion programs.
Publications
- Messer, Kent, Harry M. Kaiser, William Schulze. The Problem with Generic Advertising: Parallelism and Possible Solutions from the Lab. American Journal of Agricultural Economics. 90(2008):540-552.
- Rusmevichientong, Pimbucha and Harry M. Kaiser. Measuring the Effectiveness of U.S. Rice Export Promotion Programs. NICPRE Quarterly. First Quarter, 2008: pp. 1-4.
- Doyon, M., L.D. Tamini, V. Simard, K. Messer and H. Kaiser. An Analysis of Modifications to the Centralized Milk Quota Exchange System in Quebec using Experimental Economics. Canadian Journal of Agricultural Economics. 56(2008):295-312.
- Kaiser, Harry M., John Cranfield, and Maurice Doyon. An Economic Analysis of Generic Advertising and Promotion Activities by Dairy Farmers of Canada. Second Quarter, 2008: pp. 1-4.
- Zheng, Yuqing and Harry M. Kaiser. Nonparallel Demand Increases in an Asymmetric Cournot Oligopoly. Applied Economic Letters. 2008.
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Progress 09/01/06 to 08/31/07
Outputs
OUTPUTS: The NICPRE newsletter was published and distributed four times, which contained research articles (from Cornell and other universities) on generic advertising and promotion economics. Two NEC-63 (research organization on commodity promotion economics) conferences were organized and held in Parma, Italy (spring) and Vancouver, British Columbia (fall). Two studies were completed on the effectiveness of U.S. rice export promotion. The first study found U.S. rice export promotion to be profitable. Average benefit-cost ratios were computed for U.S. rice export promotion based on a range of excess supply own price elasticities (from 1 to 10). The BCRs ranged from 30.05 for the most inelastic estimate, to 5.51 for the most elastic. Since all of these values were well above 1.0, the main policy conclusion was that the benefits of export promotion programs in terms of enhancing producer welfare have been much greater than the costs of the programs. The other study examined the direct
and cross effects of grain export promotion for rice, wheat, and sorghum. In terms of benefit-cost ratios, the direct effects of U.S. rice, wheat, and sorghum export promotion is benefiting grain producers in the United States. In terms of total effects, U.S. rice and wheat promotion is beneficial to rice, wheat, and sorghum producers combined, but U.S. sorghum promotion is not benefiting all three grains combined.
PARTICIPANTS: In 2007, my collaborators on this project were Dr. Kent Messer and Ms Pimbucha Rusmevichientong. Dr. Messer was in charged of the economic experiments for several studies, including design, carrying them out, analysis, and report writing. Ms. Rusmevichientong was an M.S. graduate student who did her thesis on U.S. rice export promotion. She worked on econometric analysis, simulation, and report writing on these two studies.
TARGET AUDIENCES: Target audience includes: other researchers interested in commodity promotion economics; United States Department of Agriculture; management of various commodity promotion checkoff programs; several state departments of agriculture. Efforts include: extension and outreach; oral presentations on research results; written reports on research results; preparing popular press articles; workshops, industry feedback meetings.
Impacts
This project impacted policy makers and researchers. Researchers were impacted because several methodological studies were published that pushed out the frontiers in applied econometrics. Policy makers were impacted since they benefited from new information regarding the impacts of commodity promotion programs.
Publications
- Myrland, O., D. Dong and H.M. Kaiser. 2007. Price and Quality Effects of Generic Advertising: The Case of Norwegian Salmon. Agribusiness: An International Journal. 23:85-100.
- Rusmevichientong, P. and H.M. Kaiser. 2007. An Economic Analysis of U.S. Rice Export Promotion Programs. Agricultural and Resource Economics Review. 36:357.
- Alston, J.M., Crespi, J.M., Kaiser, H.M. and Sexton, R.J. 2007. An Evaluation of Californias Mandated Commodity Promotion Programs. Review of Agricultural Economics. 29:40-63.
- Messer, K.D., H.M. Kaiser, C. Payne and B. Wansink. 2007. Advertising Could Calm Food Safety Fears. Food Navigator August 14, 2007.
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