The Influence of Technological Change on Grain Elevator Pricing Efficiency

Schmiesing, Brian H.; Blank, Steven C.; Gunn, Steven P.

doi:10.2307/1349331

Cited by 2 publications

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“…Relevant works include (Frittelli 2005) who find that between 1980 to 1998, the number of farms decreased by 15%, but farm size increased by 11%; concurrently, the number of terminal elevators increased, but the total number of grain elevators dramatically fell, mostly due to country elevators exiting the market. Other research has looked into vertical relations within the grain industry in the USA (Schmiesing et al 1985) find that increases in the use of (large) unit grain trains in turn gives elevators access to larger and in some cases more distant markets, improving their price efficiency. Huang (2003) determined factors affecting shuttle 12 adoption, and as of the late 1980s with changes to how railroads marketed to grain shippers, shuttle trains have been increasingly adopted by the elevator industry.…”

Section: Introductionmentioning

confidence: 99%

Exit Decisions in the Canadian Grain Elevator Industry

2021

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Grain elevators play a central role in the movement of grain to market and to rural economies in terms of employment and investment. Over the last three decades, the grain elevator industry in Canada has experienced a major decline in the number of elevators as older and technologically obsolete elevators have been replaced by larger and more technologically advanced elevators. We develop a model of exit in the Canadian grain elevation industry using data from 1999 to 2016 collected at the individual elevator level. Our specification explains elevator exit based on traditional variables used in the industrial organization literature such as capacity, multi-plant ownership, and vintage. But, we also include a measure of vertical linkage in the industry (i.e., elevator linkage to the freight transport sector) as well as spatial measures to account for local demand, supply, and competition levels. The results provide strong evidence that exit in this key agricultural and trade industry is affected by whether an elevator is a recent entrant (vintage), its size, vertical linkages, local demand and supply conditions, and spatial competition.

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Section: Introductionmentioning

confidence: 99%

Exit Decisions in the Canadian Grain Elevator Industry

2021

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Whimsical aggregation of temporal data, market identification, and fragile results

Blank

Schmiesing

1990

Agribusiness

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One of the most common problems faced by analysts of agribusiness markets is that available data are aggregated to a degree that obscures the underlying decision process. This article reminds analysts of the implications of temporal data aggregation for market identification and its effects on the robustness of empirical results. Also, three major commodity market price series are analyzed to demonstrate how aggregation can affect empirical results. Finally, guidelines are suggested for selecting the appropriate level of aggregation for empirical problems.One of the most common problems faced by analysts of agribusiness markets is that available data are aggregated to a degree that obscures the underlying decision process. In particular, temporal data aggregation is a major source of specification error in economic time series analysis because it involves missing information. l,* The implications of time series aggregation for economic modeling has been occasionally analyzed since the 1950s. Yet, empirical studies of agricultural markets continue to use data sets containing daily, one day of the week, weekly average, monthly average, quarterly, and annual prices while largely ignoring the implications of such aggregation.Learner3 suggests the addition of two words to econometric discourse: "whimsy" and "fragile". According to Learner:In order to draw inferences from data as described by econometric texts, it is necessary to make whimsical assumptions. The professional audience consequently and properly withholds belief until an inference is shown to be adequately insensitive (not fragile) to the choice of assumptions.Hypothesis tests using regression often require a large number of distributional assumptions in order to estimate the models. The concept of "fragile" refers to This is Giannini Foundation Research Paper No. 906. The authors are faculty members oft respectively,

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The Influence of Technological Change on Grain Elevator Pricing Efficiency

Abstract: Economics Staff Paper No. 84-11*** December 1984 *Chuck Lamberton and Gene Murra made many comments on this paper which improved the quality and presentation of the report. However, the authors are solely responsible for any remaining errors or omissions.

Cited by 2 publications

References 6 publications

Exit Decisions in the Canadian Grain Elevator Industry

Exit Decisions in the Canadian Grain Elevator Industry

Whimsical aggregation of temporal data, market identification, and fragile results

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