This article's focus is on the time adjustment paths of the exchange rate and prices in response to unanticipated monetary shocks. First, we expand the theoretical specification of the overshooting hypothesis by generalizing Dornbusch's model to include a third sector (i.e., agricultural prices). Second, we employ Johansen's cointegration test along with a vector error correction model to investigate whether agricultural prices overshoot in an open economy. The empirical results indicate that agricultural prices adjust faster than industrial prices to innovations in the money supply, affecting relative prices in the short run, but strict long-run money neutrality does not hold. Copyright 2002, Oxford University Press.
The U.S. wine market experienced rapid growth in all facets-production, consumption, exports, and imports-over the past decade. Red wine imports more than tripled while consumption of domestically produced red wines doubled. This research estimates demand elasticities of U.S. red wine imports from fiv countries accounting for over 90% of imports-Italy, France, Spain, Australia, and Chile-using the first-di ference version of the almost ideal demand system (AIDS). These elasticities are compared with those for domestically produced red wine. Results for conditional expenditure elasticities indicate that the U.S. red wine industry gains over imports when U.S. consumers' total expenditures on red wine increase. However, comparing own-and cross-price elasticities reveals an increase in the price of U.S. red wine results in a decline in quantity demanded six times greater than for French and Italian red wines and over 20 times greater than other import countries, thus harming the U.S. red wine industry. Empirical results suggest that U.S. red-wine producers could increase their total revenue by decreasing prices, while Italian and French producers can increase total revenues by increasing them.T he goal of this research is to estimate U.S. demand for red wine in order to obtain price and expenditure elasticities using a difference version of the almost ideal demand system (AIDS). This analysis examines import demand as well as demand for domestically produced red wines. U.S. imports of red wines increased over 330% in the last decade, and red wines account for 56% of total
The 1996 American Agricultural Economics Association (AAEA) Employment Services Committee (ESC) survey results reveal that although enrollments are declining in both undergraduate and graduate programs, faculty numbers are increasing. These trends belie the fact that the increase in faculty has come among nontenure track faculty and that the number of tenure track assistant professors has declined markedly because of fewer hires, promotions, and attrition. One result is an aging tenure track faculty. Salaries among all faculty have been increasing at over 2% per year; however, a greater proportion of faculty is in the nontenure track at lower salaries. Key strategies to reverse declining enrollments are for departments to improve diversity, to gather information on placement of students at all levels, and especially to learn more about private‐industry placements at the undergraduate and masters levels and about foreign employment at the graduate level.
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